NAPA COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT Board Agenda Letter

Transcription

1 Agenda Date: 6/7/2016 Agenda Placement: 8A Set Time: 1:30 PM PUBLIC HEARING Estimated Report Time: 20 Minutes NAPA COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT Board Agenda Letter TO: FROM: Board of Directors Phillip Miller - District Engineer Napa County Flood Control District REPORT BY: Daisy Lee, Senior Flood Project Analyst SUBJECT: Open Budget Hearings RECOMMENDATION 1. Open Fiscal Year Budget Hearings. 2. Receive staff s presentation and accept public testimony on the following budgets, including policy-related items: Fund Dept Division Division Description Appropriations Revenues Estimated Fund Balance Requirement Watershed Projects $2,465,167 $2,389,378 $75, Flood Control $7,298,408 $1,260,000 $6,038, Water Supply Projects $10,936,650 $11,436,650 $ Oakville to Oak Knoll CFD $124,500 $124,500 $0 3. Continue Fiscal Year Final Budget Hearings to June 21, 2016 for adoption of final budgets. EXECUTIVE SUMMARY Submitted for Board approval are the Fiscal Year proposed Napa County Flood Control and Water Conservation District (District) budgets. The District has two funds: Fund 8000, Department 800 and Fund 8010, Department 801. Fund 8000 has three Divisions including: Watershed Projects, Flood Control, and Water Supply Contracts. Fund 8010 has one Division: Oakville to Oak Knoll (OVOK) Community Facilities District (CFD).

2 Page 2 PROCEDURAL REQUIREMENTS 1. Open Public Hearing. 2. Staff reports. 3. Public comment. 4. Motion, second, discussion and vote to tentatively approve the budget. 5. Continue Public Hearing to June 21, 2016 for final adoption. FISCAL IMPACT Is there a Fiscal Impact? Is it currently budgeted? What is the revenue source? Is it Mandatory or Discretionary? Is the general fund affected? Yes No Revenue sources vary within each Division and include State and federal revenues, assessments and charges for services and interest. Mandatory No Future fiscal impact: This item establishes the appropriation authority for Fiscal Year. Consequences if not approved: Additional Information: No approval is needed at this time. ENVIRONMENTAL IMPACT ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations (State CEQA Guidelines) and therefore CEQA is not applicable. BACKGROUND AND DISCUSSION Submitted for Board consideration is the Fiscal Year proposed District budget. The District is accounted for under two Funds: Fund 8000, Department 800, which includes three Divisions including: Watershed Projects, Flood Control and Water Supply Contracts; and Fund 8010 Department 801, which has one Division: OVOK CFD. Detailed explanations of the various budget components are in the following narrative and attached spreadsheets.

3 Page 3 Fund Dept Division Division Description Appropriations Revenues Estimated Fund Balance Requirement Watershed Projects $2,465,167 $2,389,378 $75, Flood Control $7,298,408 $1,260,000 $6,038, Water Supply Contracts $10,936,650 $11,436,650 $ Oakville to Oak Knoll CFD $124,500 $124,500 $0 Fund 8000 Division Watershed Projects Division is comprised of the following four sub-divisions: Countywide Watershed Management, NPDES Storm Water Management, Rutherford Maintenance, and Oakville to Oak Knoll (OVOK) Community Facilities District (CFD) Services Sub-Division Countywide Watershed Management: The requested appropriations for the Countywide Watershed Management sub-division is $1,660,640. On May 10, 2016 a Resolution was adopted levying Fiscal Year assessments, which will result in an estimated $1,184,000 in revenues for various maintenance projects. Additional revenues include State and Federal grants and allocations from local jurisdictions in the amount of $406,640, along with the use of some funding from accumulated unspent fund balance from prior years in the amount of $70,000. The proposed budget includes expenditures to continue managing and upgrading the Countywide Early Warning system, including verifying the calibration of flow gages and rating of streams to provide reliable data for hydraulic models, as well as improving emergency planning and response, which aids Napa County and its cities in flood prediction and response planning. Also funded is the continued maintenance of the District s 13 miles of channel easements throughout the County. The budget also funds support for Calistoga, St. Helena, Yountville and the City of Napa for projects and studies involving the maintenance of tributaries and channels within city and town limits, both on public and private property. These services are provided on an as-needed basis based upon stream surveys conducted by District staff, as well as landowners' requests for assistance. The District supports the U.S. Army Corps of Engineers (Corps) dredge of the Napa River south of Third Street when federal funds are allocated for this purpose. The District is responsible for providing disposal sites for the dredged material. A yearly contribution to a dredging fund is built into the budget which, together with the carryover amount from fund balance, provides adequate funding when a dredge event is funded by the Corps. The streambank cost-share program remains popular and attracts applications for stream erosion protection from private property owners. These projects are approved on a first-come basis for projects meeting environmental and property protection goals. The District works with local partners to manage a native plant propagation facility to further support streambank restoration and the use of local native plant species. Match monies are included in the proposed budget for grants awarded by State and federal agencies. These projects will remove non-native plants from portions of the watershed. The budget also includes $235,000 of funding from the City of Napa related to a mitigation project on Salvador channel that the City is required to implement related to the First Street Bridge over the Napa River. Funds are also included in the budget for

4 Page 4 supporting ongoing IRWMP activities in both the Napa River Watershed and Putah Creek and Suisun Creek Watersheds. Continued groundwater monitoring is being supported in collaboration with the County. The proposed budget has been increased in recent years in response to the greater focus on this area of watershed management and to assist the County in responding to increased monitoring, data management and reporting needs associated with State requirements and the County's updated Groundwater Monitoring Plan. The proposed budget continues support of the Countywide National Pollutant Discharge Elimination System (NPDES) (stormwater) program. To respond to increased costs associated with the new Phase 2 NPDES Permit that will be effective in the coming year, the District's proposed contribution to the Countywide Stormwater Program Joint Powers Agreement (JPA) from assessment revenues has been increased to equal half of the cost (approximately $92,000) of staff and administrative support to the JPA for a full-time stormwater program manager. The cities and County cost share the other half of these costs equally. The District also performs additional activities in support of the NPDES program, including volunteer coordination for creek cleanup activities and educational programs for landowners whose properties include creeks. Sub-Division NPDES/Stormwater Management: Total requested appropriations for the Countywide NPDES/Stormwater Management program is $582,518 and funds one full-time equivalent staff position plus additional educational outreach and support contracts. This program is funded by an Agreement between American Canyon, Napa, Yountville, Calistoga, the County and the District with District staff facilitating and providing technical support for the program. Sub-Division Rutherford Maintenance: Total requested appropriations for Rutherford Maintenance is $104,509 to fund the maintenance of the Napa River and the adjacent riparian area between Zinfandel Lane and Oakville Cross Road in conjunction with the Rutherford Reach Restoration Project, which was built using grant funds and County Measure A funds between 2009 and This sub-division is funded by assessments within the Rutherford Reach Special Benefit Zone as approved by the property owners in this area in 2008, which will supply $98,160 in new revenues in Fiscal Year, with $5,789 estimated to be used from fund balance. Sub-Division Oakville to Oak Knoll Community Facilities District: This subdivision accounts for the expenditures associated with maintenance services for participants in the OVOK CFD. The total requested appropriations for the OVOK CFD is $117,500 to fund the maintenance of the Napa River and the adjacent riparian area in this reach in conjunction with the Oakville to Oak Knoll Reach Restoration Project, which is being built using grant funds and County Measure A funds and other participants who voluntarily have joined the CFD. This sub-division is funded by special taxes, collected into Fund 8010 (see below) as approved by the property owners in this area in Fund 8000 Division Flood Control Division is comprised of the following two sub-divisions: Flood Control Project, and Flood Authority Administration Sub-Division Flood Control Project: Total requested appropriations for the Napa River/Napa Creek Flood Protection Project (Project) is $7,198,408, offset by $1,000,000 estimated State Subventions receipts, interest earnings of $160,000 and use of prior years accumulated fund balance in the amount of $6,038,408. The District maintains a 20-year revenue and cash flow model for the Project to assure that changes in expected

5 Page 5 revenues that occur due to the economy, activity in the State budget process that affects the State Flood Subventions program, grant funding and other revenue sources are projected as accurately as possible. Similarly, the District maintains a cost projection model that is updated as various Project components become better defined. The Fiscal Year proposed budget for the Project is based on this model. The proposed budget for the Project is comprised of land acquisition and planning, engineering and design (PED), construction and construction management. The proposed budget related to land is approximately $623,808 and includes right of ways services, surveying, legal services and staff time. Staff and County Counsel will continue to work with the Corps on the land and relocation crediting packages, as well as with the State on the subvention reimbursements. Planning, engineering, design, construction and construction management constitute $1.979 million for the Project in Fiscal Year. Funds are budgeted for costs related to the completion and closeout of the Bypass construction in which the District is financially obligated for utilities, roadways and other responsibilities. The budget also includes funds to complete the final phase of the Napa Valley Wine Train parking replacement project. With the Post Bypass Value Engineering and Incremental Analysis Report now complete, funds are set aside in Fiscal Year to support federal review and analysis of the findings. Funds are also budgeted for design of District responsibilities in the next phase of the Project. The proposed budget includes District staff time and construction, design, and on-call hydraulic support services. The District has assumed the operation and maintenance of the following completed Project elements: South Wetlands Opportunity Area, Contract 1A, Contract 1B from Kennedy Park to Imola, certain elements in Contract 2 East from Imola Avenue to Third Street, Contract 2 West from Hatt to First Street, Napa Creek, the Bypass Rail Bridge Relocation Project, and the recently completed Bypass. Therefore, funds have been allocated in the proposed Fiscal Year budget to provide for the operations, maintenance and monitoring of the constructed flood features. The remaining expenditures in the proposed Fiscal Year budget include repayment of two State Revolving Loans of approximately $3.26 million and cash contributions of $700,000 to the Corps. Because actual expenditures for the current fiscal year will not be finalized until September 2016, the total expenditures for the proposed budget year may require adjustment. Assumptions related to these future adjustments will be reflected in the 20-year forecast and will be presented to the Board later this year. Sub-Division Flood Authority Administration: Total requested appropriations for Flood Authority Administration is $100,000, offset by Measure A revenues, and includes staff costs for performing general administration and development of Measure A project funding agreements, staff support for the Financial Oversight Committee and carrying out Measure A compliance work. Fund 8000 Division Water Supply Contracts Division accounts for the District's responsibility to ensure that Napa County's municipal, industrial and agricultural water needs are met. The District is the local contracting agency to the State of California, through their Department of Water Resources (DWR), for Municipal and Industrial water from the State Water Project (SWP). This relationship resulted in the extension of the North Bay Aqueduct (NBA) into Napa County. This Division has one sub-division, Water Supply Contracts, with total requested appropriations of $10,936,650, offset by revenues from the sale of water and grants. The District contracts with the U.S. Bureau of Reclamation (BUREC) for water from Lake Berryessa for use in the Upper Putah Creek watershed in Napa County. The District, in turn, subcontracts for the sale of the water to local agencies and property owners.

6 Page 6 District staff meets regularly with a Technical Advisory Committee (WATERTAC), consisting of the Public Works Directors and Water Managers of the Member Agencies (Cities), to obtain input and build consensus on matters relating to administration of the State Water Contract, additional water supply possibilities and water supply reliability enhancements. Because Member Agencies pay for the District's services in this effort, WATERTAC advises staff, through a consensus-building process, as to the level of service and the various projects and programs that it desires. Water supplies appear to be more than adequate for this coming year with allocations reaching 75% of SWP supplies for Additionally, the District is working with the Solano County Water Agency and DWR in planning and environmental work for a potential NBA Alternative Intake Project. Fund 8010 Division Oakville to Oak Knoll CFD Division accounts for the District's special tax collection through the OVOK CFD, which was created through a vote of the involved landowners in 2014, principally to support long-term maintenance and monitoring of the Napa River Restoration-Oakville to Oak Knoll Reach Project. The CFD is open to voluntary participation of other landowners with stream or river frontage within the District boundaries, which encompasses the central Napa River Watershed from Zinfandel Lane to Oak Knoll Avenue. The CFD has been established to exist for 20 years ( ). Each year additional landowners with interest in stream or river restoration and maintenance may elect to annex into the district through a filing of their consent to such with the District. The budget for Fiscal Year of $124,500 reflects the revenues associated with baseline participants plus additional participants who have agreed to join the CFD for the coming year. Expenditures from this fund include the estimated $117,500 of services to be performed under Fund 8000 Sub-Division (see above) and $7,000 for administrative and legal costs to maintain the CFD. SUPPORTING DOCUMENTS A. NCFCWCD Final Budget Narrative and Budget (All Funds) District Engineer Recommendation: Approve Reviewed By: Helene Franchi