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Home My WebLink About22-Public Works CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION File No. 4.80 From: ROGER G. HARDGRAVE Subject: Support for AB 97 - Providing Funds to Finance Claims by Local Agencies for Flood Control Facilities Dept: Public \'Yorks ORIGINAL Date: 1-29-97 Synopsis of Previous Council action: Consent given for adoption of a Resolution of Intention by the Board of Supervisors relative to establishment of a Benefit Assessment District to finance the unfunded portion of the local agency share of the improvement of San Timoteo Creek. Resolution supporting County's proposal continued to 05- 22--95. Resolution referred to Legislative Review Committee. Resolution tabled. Resolution No. 96.49 adopted supporting County of San Bernardino's proposal to form an assessment district for San Timoteo Creek Improvement. 05-02-94 - 05-15-95 05-22-95 06-05-95 02..19-96 Recommended motion: Adopt resolution. cc: F. \'lilson J. Penman AD;';LN. Ol'?iCt:, a~~ Signature 29 .!AN 97 9151 Contact person: Roger G. Hardgrave Staff Report, Resolution & Memo Phone: 5025 Supporting data attached: Ward: All FUNDING REQUIREMENTS: Amount: N/A Source: (Acct. No.) (Acct. DescriPtion) Finance: Council Notes: Res 97- 51 75-0262 Agenda Item No. J./17/9t. -3..7... CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION STAFF REPORT AB 97 was introduced by Assembly Members Frusetta and Morrissey to stipulate that $170,000,000 be made available to the Department of Water Resources for payment of claims by local agencies. The local agency share of federal flood control improvement projects is 25%. In 1988 the State Legislature determined that they will pay 70% of the local agencies' share of federally funded flood control projects. However, no funds have been allocated in the past few years to pay claims by local agencies. Approval of AB 97, known as "Frusetta - Morrissey Flood Prevention Act of 1997," would make $170,000,000 available for 70% of local agencies' shares. The assessments to be levied for the San Timoteo Creek improvement project would be significantly decreased, if State funds were available to pay a portion of the local agency share. Therefore, we recommend that the City support the enact- ment of AB 97 into law. A copy of the inter-office County memo from Tim Kelly to Ken Miller, dated 1-14-97, is attached for reference. Attach. 1-29-97 7~.0264 . . ,.,... . ':'-;,;;;-'''''."'":1, ~'., . M-"'tff.....,~ .,.; - _'!IE_ _">tft' --.-_ - . ---'...... .. /1" / INT:ROFFICE MEMO DATE: January 14, 1991 FROM: KEN A. MILLER, Director Is/ TransportationIFlood Control PliO}{E: 387-2623 MAIL CODE 0835 TO: TIM KELLY, ACA Public Services Group File" j((',4!. )lbl SUBJECT: FLOOD CONTROL SUBVENTIONS FUNDING - ASSEMBLY BILL AB 97 I On January 7, 1997 State Assembly members Frusetta and Morrissey introduced AB 97, which addresses funding for the State Flood Control Subventions Programs. The Legislative Counsel's Digest for the bi\l states, in part, the following: Under existing law, the Department of Water Resources administers a state flood control subvention program for local flood control assistance. This bi\l would enact the Frusetta-Morrissey Flood Prevention Act of 1997, which would make legislative findings and declarations with regard to the importance of state investment in flood control and a statement oflegislative intent that SI70,000,000 be made available to the Department of Water Resources by the Budget Act of 1997 for flood control subventions to local flood protection projects. The bi\l would declare that it is to take effect immediately as an urgency statute. The Flood Control Subvention Program has been a vital component in the funding offederal flood control projects since the early 1900' s. ~ . Policy regarding State participation in federal flood control projects was first established in the early 1900's, amended in 1946 and again in 1988 when, in response to the enactment by Congress ofPL 99-662 (the Water Resources Development Act of 1986), the legislature determined that the State shall pay 70% of the non-federal cost required by Congress. The Department of Water Resources currently has on file approximately S162 million in unpaid claims for State payment of its share offederal flood control projects, constructed or under constructioQ, ip nine counties throughout the State. Our County currently has submitted claims to the state in the amount ofS4.2 million for expenditures on the Seven Oaks Dam and Mill Creek features of the Santa Ana River Mainstem project. In the next 30 to 60 days, we wi\l be submitting additional claims in the amount ofan estimated $4.5 million for additional expenditures that have been incurred on the Seven Oaks Dam and San Timoteo Creek feature bringing our total claim for reimbursement to S8.7 million. By the time the Santa Ana Mainstem project in our County (including Seven Oaks Dam, Mill Creek Levee, and San Timoteo Creek) is completed, our total claim for reimbursement will be approximately $15 million. < . ,~~.,.r - ., . / MEMO TO TIM KELLY January 14, 1997 Page 2 I The Department of Water Resources administers the Flood Control Subventions Program for state financial assistance to local agencies cooperating in federal flood control projects. The Department of Water Resources has historically funded Flood Control Subventions to local agencies with money appropriated from the General Fund or the Special Account for Capital Outlay. Since 1990, the state's economic difficulties and budget deficits have led to the programs not being funded for four of the past six years. Funding in the other two years was very limited: in 1991-1992 funding was limited to $29.75 million and in 1993-1994 to $12 million. Proposition 204, which was passed by the voters in November 1996, included $90 million for the subventions program leaving a shortfall in excess of $70 million for claims that are already in hand at the Department of Water Resources. In addition, with projects still in progress around the State, such as those in our County, and new projects coming on line around the State, the amount of claims will continue to rise. The Flood Control Subventions Program was very important to enable our County to meet its local cost cOlllmitments on prior projects such as the LytlelWarnl Project in San Bernardino and the Cucamonga Creek/Deer Creek project in Rancho Cucamonga and Ontario. We anticipated reimbursement through the subventions program when we put together our financing plan for the Santa Ana Mainstem project. Without anticipated reimbursements from the State, we had to put in place an assessment district to finance most of our local interest costs for the San Timoteo Creek feature. Full reimbursement from the State through the subventions fund would enable us to substantially reduce or even eliminate these assessments on benefiting landowners. Other counties with ongoing major federal flood control projects eligible for funding under the subventions program include Contra Costa, Fresno, Kern, Los Angeles, Orange, Riverside, San Diego, and Santa Clara. It is absolutely essential that the State acknowledge its commitment to these local sponsors and begin regular reimbursement of their claims. Some may suggest that the State has no obligation to reimburse these local sponsors. Clearly, the local sponsors do not hold this view. They have proceeded with these projects, after the projects were authorized by the State, with the clear understanding that the State would reimburse a percentage ofthe non-federal costs. Section 12585.5 of the Water Code says that the State.mM! pay a specified percentage of the non-federal costs. It does not say mav or mi8ht. it says SHALL. It is understood that State funds must be appropriated, but it is the responsibility of the legislature and the Governor to make those appropriations consistent with the statutorily declared policy. It is important that there be a commitment on the part of the State to address the backlog of claims and to anticipate claims from ongoing work on all State authorized projects. AB 97 would go far in achieving this. KAM:rc cc: Jim H1awek