Upper San Joaquin River Regional Flood Management Plan Regional Flood Protection

1. Upper San Joaquin River Regional Flood Management Plan Regional Flood Protection Now and in the Future Workshop 7: Financial Planning Wednesday April 16th, 2014Lower San Joaquin Levee District11704 Henry Miller AveDos Palos, CA 93620

2. Workshop Protocols • Use Common Conversational Courtesy • Humor Is Welcome • Be Comfortable • Spelling Doesn’t Count • Electronics Courtesy • Avoid Editorials

3. Agenda • Introductions • RFMP Status Update • LSJLD Finance • Merced Stream Group Finance • Madera County Finance • RFMP Financial Planning

4. Local Agency Flood Management Operations and Maintenance RFMP Status Update • Operations • Coordination with State Flood Operations Center and upstream reservoir operators • Patrols of flood facilities • Stockpiling flood fighting materials • Flood fighting • Control gates • Maintenance • Facilities inspections • Levee and structure repairs • Channel stabilization • Vegetation control & removal • Sediment removal • Rodent control 4

5. RFMP Evaluation Process

6. Proposed System Improvements • 87 proposed system improvements • All proposed system improvements must have: • Local sponsor • Willing participants • Flood management nexus • Short-term within 5 years (critical fixes) • Long-term 5 to 10+ years • Develop multi-benefit system improvements to improve funding opportunities

7. System Improvements List • System Improvement List is composed of: • Capital Improvements • O&M Activities • Emergency Management Activities • Integrated Water Management • Studies • Recommended Actions • Conceptual Ideas

8. System Improvement Projects • 87 Potential System Improvement projects identified • 58 are short-term projects • 29 are long-term projects • $821M in system improvements identified • $55M short-term • $766M long-term • 26 projects not defined well enough to develop cost estimates

9. System Improvement Prioritization • Reviewing criteria based on stakeholder comments • Score system improvements based on evaluation criteria • System improvements sorted based on ranking for: • Public Safety • Environmental Stewardship • Economic Stability • Regional Issues • Overall Total

10. System Improvement Groupings • Organize improvements to provide a menu of options • Groupings provide flexibility to: • Mix and match high priority system improvements to create multi-benefit projects and meet funding opportunities • Put together specific reach or geographic options • Put together system improvements that are similar in benefit (levee improvement, invasive species, etc.)

11. Local Agency Flood Management Operations and Maintenance LSJLD Finance • Operations • Coordination with State Flood Operations Center and upstream reservoir operators • Patrols of flood facilities • Stockpiling flood fighting materials • Flood fighting • Control gates • Maintenance • Facilities inspections • Levee and structure repairs • Channel stabilization • Vegetation control & removal • Sediment removal • Rodent control 11

12. Local Agency Flood Management Operations and Maintenance Merced Stream Group Finance • Operations • Coordination with State Flood Operations Center and upstream reservoir operators • Patrols of flood facilities • Stockpiling flood fighting materials • Flood fighting • Control gates • Maintenance • Facilities inspections • Levee and structure repairs • Channel stabilization • Vegetation control & removal • Sediment removal • Rodent control 12

13. Local Agency Flood Management Operations and Maintenance Madera County Finance • Operations • Coordination with State Flood Operations Center and upstream reservoir operators • Patrols of flood facilities • Stockpiling flood fighting materials • Flood fighting • Control gates • Maintenance • Facilities inspections • Levee and structure repairs • Channel stabilization • Vegetation control & removal • Sediment removal • Rodent control 13

14. Local Agency Flood Management Operations and Maintenance Finance Plan • Operations • Coordination with State Flood Operations Center and upstream reservoir operators • Patrols of flood facilities • Stockpiling flood fighting materials • Flood fighting • Control gates • Maintenance • Facilities inspections • Levee and structure repairs • Channel stabilization • Vegetation control & removal • Sediment removal • Rodent control 14

15. Financial Planning Steps • Describe the current financial condition • Refine flood management investments • Define values to be used to prioritize investments • Explore financing mechanisms • Evaluate affordability and need for phasing

16. There are several aspects involved in describing the current financial condition • Economic health of the local economy • Assessed value of the property in the service area • Major commitments already in place • May be maintenance costs for existing infrastructure • Is there capacity to take on more debt?

17. USACE Funding is expected to be low

18. DWR funding has been driven by bonds

19. The RFMP’s help refine the SSIA investments • The SSIA would prefer to spend on the tails of the historical investment trend • The RFMP’s can indicate their preferences for assistance

20. RFMP project prioritization needs to reflect local values • RFMP’s need to use this opportunity to inform DWR of their highest ranking projects • Besides identifying high risk projects, prioritization process should consider multi-benefit projects • Multi-benefit projects bring more financing opportunities into the picture

21. Traditional financing mechanisms • Traditional flood investment financing was primarily USACE funding along with local property assessments • SPFC facilities had access to some additional state funds • Proposition’s 13, 218, and 26 have severely restricted the ability for local entities to raise money for flood protection

22. Proposed statewide financing mechanisms being explored • State is evaluating a state flood insurance program • Is it advantageous to move from the NFIP? • Possible changes to the Proposition 218 restrictions • Should flood protection should be similar to water, sewer, and garbage? • The challenge -- “Are new mechanisms trying to generate money from the same rate payers, or(picking apples from the same tree)?

23. Multi-benefit projects have the advantage of having access to more funding sources • There are several programs that fund protection and restoration of habitat (e.g. NRCS) • Multi-benefit projects could potentially attract philanthropists • There should be a focus on financing mechanisms that are funded, have larger awards, and have reasonable applications

24. There are several sources available for state and federal financing

25. Federal Restoration Programs

26. Federal Restoration Programs

27. State Restoration Programs

28. FloodSAFE Implementation Programs

29. FloodSAFE Implementation Programs

30. FloodSAFE Implementation Programs

31. Financing will be evaluated using a scenario approach • Costs will be allocated among local, state, and federal entities to assess impacts • Scenarios will be based on historical participation, then varied as appropriate

32. Affordability will be critical to the finance plan • Affordability is a function of the region’s capacity to generate revenue for flood management, as well as the ability attract state and federal funding • Affordability also is influenced by other competing needs, such as water supply • Existing financial commitments should be addressed before new projects are added to the portfolio

33. Affordability will take into account the impacts of potential project phasing

34. Finance Plan Summary • Finance planning is an iterative process • As projects are refined, possible financing sources for that project can be investigated • Affordability will dictate the magnitude and phasing of projects

35. Local Agency Flood Management Operations and Maintenance Schedule • Operations • Coordination with State Flood Operations Center and upstream reservoir operators • Patrols of flood facilities • Stockpiling flood fighting materials • Flood fighting • Control gates • Maintenance • Facilities inspections • Levee and structure repairs • Channel stabilization • Vegetation control & removal • Sediment removal • Rodent control 35

36. Status of RFMP Process

37. Questions?