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Home My WebLink About0332.095TO: FROM, DATE: SUBJECT: BEOlJEST City of Palo Alto City Manager's Report HONORABLE CITY COUNCIL . CITY MANAGER DEPARTMENT: Fablk Works luI)' 6, 1995 CMR:33l:9S Stat .. Repert 011 Fandiag of Fumre SaDt. Claro Valley Wlter District Capital Improvement Program This is an inlbrmational report on the sratus cf funOUlg for tlJe Santa Clara YaIJey Water District's Capital Improvement Program over tlJe next several years. POLICY IMPLICATIONS This report does not conraln any cluin ges 10 existing City policies. EXECliTM SUMMARY The Santa Cbn Valley Water District is divided into fro·. !lood control zones, based upon waleI5hed boundaries. Palo Alto is in the Nortbwesl Zone, which .r", includes Mountain YleW, Los Ahos, Los Altos Hills, and parts 0( Cupertino and Sunnyvale. Each 20ne has an Advisory Committ~ ~ 0( kxal C<l<IIlciI members, municipal staff. and yrivate citizens that advises the District Board 0( DireClooi on policy and budget matters. At the May 17, 1995 meeting of the Nortbwesl F\ood Cootrol Zo:le Ad";s,,,y Committee, District sf!ff presented an avervie-", of the District's options for funamg future flood cootrol projects. .~ ",esentation covered three map Iopie>: overview of tile D'.st."icCs benei:'t assessment program, feasibility of an election in the near future 10 extend the benefit assessment program, and maximization of current capacity for Ioog,term debt. • Oyenrjew ofthc Distrlct~$ Benefic Assessment Prowro Prior 10 1978, ad vaIcrem property tax .. were the District', primary source ofrevenue. In tbe years K>Ilowing Proposition 13, however, property tax limitations began 10 reduce the District's ability 10 finance its flood control projects. As a result, the District Board 500gbt vote< approval of an alternative fim<fmg mechanism. l~ 1982 and again in 1986. voter.; in !he Nortbwest Zone apptc>ved balJo( measures 10 impose a benefit assessment on each parcel of land in order 10 accelerate the District'. proposed flood cootrol program within tlJe '''''''. A portion of the revtlIlue generated by the benefit .. s<:.smeets over the past 11 years bas funded flood control work on Matadero, Bam>n, and Adobe Creeks. After fune 30. 2000. the benefit assessment CMlI.:l31<95 hie 1 rAJ ' . . '-. --, o program will sunset. and asS;eSsments ,.,.,1\ be ~ from their current level l<> l.2 5 times the outsfJInding deb< senice. This level of revenue will fund ongoing maintenance and operatiooal costs, but would severely restrict the ability of the Di."Irict 10 contlnue implementation of it. capital improvement pcogram. • F"",Wily offuture f.!ectjon 10 EXI!:nd Benefit Assessment PrQiWO Voler approval will be required to maintain a benefit essesStneolpcogram that would support a full-scale capital improvement program beyood !he year 2000. The ele<'tions, v.'rucb would be coodocted separately within each District zone, could be beld at any time between now and !he year 2000. At !he May 17 meeting, District staff 500gb! input from the Northwest Zone Advisory Committee regarding the feasibility of subrrjning a baIJot measure lOr Ibe November 1995 election in the Northwest Zone. They suggested !hat the recent wet winter and flood damage might induce voters to support an extension of!be benefil assessment program if !be election were held in !he near futu. .... Althoogh !here was general suppo<1 ["" coolinuing Ibe flood control program beyond 2000, the Coounlttee ,'o!,ed to recommend to !be District Board thai an election not be held alibis time, Coounlttee members believed that Ibe public would nol be receptive 10 toore deb! so soon after the approval 0( local scbool bond measures. It was also relt !hat it would be pcemature to bold an election befure !he oogoing Coo<dinated Resource Mm"gernent and Planning (CR..\1P) process has generated a long-term watershed plan fur San Francisquilo Creek. since this stream would Iu.ely be • tey part 0( any flood control pI"Dgrarn beyond !be year 2000. The District Board recently adopted recommendations from Advisory Committees in Ibe Northwest and South Zcoes not to pursue an election in !he near future, The Board is stiU coosidcrlng whe:her \0 place a measure on !he baDoI in !he North Central, Central, and East 7..ones in either November 1995 or Marc!! 1996, based upon recommendations from !be Advisory Committees in these zones. • l .... faxjrnjzatign ofeuaent CaDacity fur [.qn i-term Debt Under !be pcrn.isioos of!be current voter-approved benefit assessment pcogram, !be District Board has until1une 30, 1995, \0 preserve the District's right 10 incur additionallong-Ierm debt by entering into an agreemrot will! Ibeif fuD(fmg eo<poration. Without Il!is agreement, no additional debt can be incurred ofIer June 30, J 99S unless the benelil assessments are extended via an election as discussed sbove. Districl st.aff bave calculated !hat !be currenl benefit assessro.."ItI program gives I."" Northwest Zone !he capacity 10 incur up 10 $30 million in additional deb! tbrough!he sale of Certificates of Participation (COP). AJtbough Ibe District Board would decide bow \0 spend the proceeds from !he sale of these COP'. tbrough its annual bodget process, !he pcoceeds would most likely be used to fund impr<Wcments on AdOOe Creek (upstream ofE! Camino) and Penr.anente Creek in Mountain VICW. Funding would not be sufficieot 10 fund a major jl£Dject en San Francisquito Creek. -, • On May i 7, \he Advisccy C<lIIImittee voted 10 =ommend 10 she Dis1rict Board that they ent", into an agreemenllO expand !be capacity for long-term debt up 10 • maximUlI'. of $ >0 million in the Nortbwost Zone. The agreoment would nol require Ille District 10 incur such debt. but would retain lheir ability K> do ro. The District Board recently adOjl\ed the Advisory Committee's =ommendation and has d"U"eCted District stafflo p<epare Ihe necessary agreement 10 expand the cap&city for long-term deb! in !be Nord,,,'est Zone. Saff will "",tinue 10 keep Council updated on the status of District fund"rng fur its capital im;Jrovement program. fl5CAJ.IMPACf The District', benefit assessment has no fiscal impact upoo tI1~ City at this time. ENVIRONMENTAL ASSF.'l.SMENT No en..wnmental assessment is required for Illis repoet. PREPARED BY: George Bagdon, Assista'lt Director cfPublk Wods DEPARTMENT HFAD REVIEW, b~></.I bu~&:=·"" .. ,--___ _ 7 GLENN's. ROBERTS . eclorcfPublic Works CITY MANAGERAPPROVAL'~~~~~~~~~ ::c;----- DC."' .... _u M. JNY Assis&.t City Manager cc: Kay \Vbitlock:, Santa Clara Valley Water District Bill P&eft, Santa Clara Valley Water District Douglas Graham, North .... est F\ood Control Zone Advisory Committee CrysIal Gamage, Northwest Flood Control Zone Advisory Committee Pal< 3 aU .-,> ;;.-;....~: .