COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

DATE:

November 1, 2005

BOARD MEETING DATE:

November 8, 2005

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

Neil R. Cullen, Director of Public Works

SUBJECT:

Funding of the Corps of Engineers’ San Francisquito Creek General Investigation Study

Recommendation

Acting as the Governing Board of the San Mateo County Flood Control District, adopt resolutions:

1.

Authorizing the President of the Board to execute an agreement (Funding Agreement) between the San Francisquito Creek Joint Powers Authority (JPA), the San Mateo County Flood Control District (SMCFCD), and the Santa Clara Valley Water District (SCVWD) which provides that the SMCFCD and the SCVWD will each provide $1,500,000 ($3,000,000 total) to help fund the cost of the Corps of Engineers’ Feasibility Study (Study) for the San Francisquito Creek Flood Damage Reduction and Ecosystem Project (Project).

2.

Authorizing the Board’s representative to the JPA to approve of the Feasibility Cost Share Agreement between the JPA and the Corps of Engineers (Corps), which provides that the JPA will finance 1/2 of the eligible costs of the Study (currently $7,643,100).

Vision Alignment

Commitment: Responsive, effective and collaborative government.

Goal 22: County and local governments effectively communicate, collaborate and develop strategic approaches to issues affecting the entire County.

Your Board authorizing execution of the Funding Agreement and Board’s representative to approve the Feasibility Cost Share Agreement ensures a collaborative approach in evaluating solutions to both creek and tidal flooding in the San Francisquito Creek watershed within San Mateo County.

Background

Previous Board Action

Acting as the Governing Board of the SMCFCD, executed a Joint Powers Agreement between the SMCFCD, the SCVWD, and the cities of Palo Alto, Menlo Park, and East Palo Alto for the purpose of managing the joint contribution of services and providing policy direction on issues related to San Francisquito Creek.

Designated:

a)

a member of your Board to serve as a Director of the JPA that was created by the Joint Powers Agreement; and

b)

a member of your Board to serve as an alternate to the Director who may cast a vote on Authority business in the absence of the Director.

History

The JPA was formed to address issues regarding San Francisquito Creek (Creek) as the Creek forms the boundary between San Mateo and Santa Clara Counties, as well as a portion of the city limits of Palo Alto, East Palo Alto and Menlo Park. The Creek has a history of flooding within the three (3) cities with the most recent flooding occurring in 1998.

The JPA has been evaluating different flood control alternatives and representatives from SMCFCD and the SCVWD agreed to fund the local match of a long term Feasibility Study in the amount of $1,500,000 per agency at the July 23, 2001, JPA meeting.

The JPA was also authorized on May 23, 2002, to represent its member agencies as the “Local Sponsor” for a Corps’ financed initial investigation (Reconnaissance Study) to determine if there was a “federal interest” in moving forward with a feasibility study. The Corps has completed the Reconnaissance Study for the Project and concluded, based on the study, that there is a federal interest in developing a flood control project for the Creek. The next step is to move forward into the Feasibility Study for the Project, which requires the Local Sponsor (the JPA) to share in the cost of the Feasibility Study.

The Corps also indicated that a study of tidal flooding could be incorporated into the Feasibility Study, and this is supported by the representatives from the cities of East Palo Alto, Menlo Park and Palo Alto.

Discussion

Three Party Agreement to Provide $3,000,000 to help fund the Study.

As stated in the Background section of this report, the SMCFCD representative to the JPA has previously committed up to $1,500,000 of SMCFCD funds with a match from the SCVWD to help finance the necessary studies of ways to reduce flooding caused by San Francisquito Creek, and these funds can be used to help finance the Feasibility Study that is being proposed by the Corps. The proposed three party agreement that is being recommended to your Board will memorialize that these funds are being made available for this specific purpose.

Feasibility Cost Sharing Agreement

The JPA has negotiated a Project Management Plan (PMP) for the Feasibility Study with the Corps. The PMP is an attachment to the Feasibility Cost Share Agreement and provides information on the cost, scope, and projected schedule for the Feasibility Study. The PMP includes studying creek flooding and tidal flooding from Adobe Creek in Santa Clara County to the Menlo Park City limits near Marsh Creek in San Mateo County. The PMP is considered a “living document” and subject to change in scope and cost.

The Feasibility Study will cost $7,463,129 based on the current estimates contained in the PMP. The Corps will finance fifty percent (50%) of this cost with a local match required for the remaining fifty percent (50%). There is a funding short fall of $138,750 based on the financial commitments of the SMCFCD and SCVWD as discussed above ($3,000,000), and in-kind services to be provided by the JPA ($592,800).

The CJPA met on October 27, 2005, and discussed the funding shortfall and the need to secure additional funding in order that the Feasibility Cost Share Agreement will be fully funded at the onset of the Feasibility Study. The four (4) JPA board members representing the cities of East Palo Alto, Menlo Park, Palo Alto and the SCVWD adopted a resolution which committed them to securing funding for the shortfall in order that the Feasibility Cost Share Agreement could be executed.

Resolutions and the three party agreement have been approved as to form by County Counsel. The SCVWD is concurrently consideration the three party agreement and the other members of the JPA will be bringing the consideration of the Feasibility Cost Share Agreement to their respective Board/Councils for consideration.

Fiscal Impact

The SMCFCD’s funding contribution to the Feasibility Study in the amount of $1,500,000 is proposed to be financed from the San Francisquito Creek Flood Control Zone. Funding for the Feasibility Study is as follows:

Total Project Cost

$7,463,100

Local Match Needed (50%)

$3,731,550

Funding Sources

SMCFCD

$1,500,000

SCVWD

$1,500,000

JPA In-kind Contribution

$ 592,800

Total Committed Local Match

$3,592,800

Unfunded Portion (Commitment from the other four JPA board members to find the additional funding )

$138,750

TOTAL

$3,731,550

The Feasibility Cost Share Agreement is a standard Corps agreement, which does not contain a not-to-exceed amount. Historically, based on the information from the SCVWD, the costs associated with this type of study have exceeded the initial estimates. The JPA will need to find additional funding sources to cover any cost overruns should they occur.

There is no impact to the General Fund.