BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT:
Title
Approve the San Francisquito Creek Joint Powers Authority Operating Budget for Fiscal Year 2023-2024 and Approve Santa Clara Valley Water District Fiscal Year 2023-2024 Financial Contribution of $422,772.60 (Palo Alto, District 7).
End
RECOMMENDATION:
Recommendation
A. Approve the San Francisquito Creek Joint Powers Authority Fiscal Year 2023-2024 Operating Budget; and
B. Approve the Santa Clara Valley Water District’s Fiscal Year 2023-2024 financial contribution to the San Francisquito Creek Joint Powers Authority in the amount of $422,772.60.
Body
SUMMARY:
The Santa Clara Valley Water District (Valley Water), along with four (4) other public agencies, is a member of the San Francisquito Creek Joint Powers Authority (SFCJPA). The SFCJPA is funded by equal contributions from the member agencies and the SFCJPA’s annual fiscal year budget is subject to each agency’s approval. In 1999, the Cities of East Palo Alto, Menlo Park, Palo Alto, and the San Mateo County Flood and Sea Level Rise Resiliency District (formerly known as the San Mateo County Flood Control District) joined with Valley Water to establish the SFCJPA to provide an environmentally sensitive, long-term watershed plan to enhance flood protection from the San Francisquito Creek. Since then, the SFCJPA’s major focus has been working with the member agencies to implement the San Francisquito Creek Flood Protection Project (Project). The Project is part of Valley Water’s Safe, Clean Water and Natural Flood Protection Program that voters renewed in November 2020.
Construction of the Project from the Bay to Highway 101 (Downstream Project) was completed in May 2019. Planning and design are in progress to provide flood protection along San Francisquito Creek from Highway 101 to Middlefield Road (Upstream Project). The final Environmental Impact Report (EIR) was certified by the SFCJPA board in September of 2019. The SFCJPA is currently working to complete design and construction of the Upstream Project, which includes channel widening, top of bank improvements, Newell Road Bridge improvements, and Pope-Chaucer Bridge improvements.
On May 23, 2023, the Board of Directors of the SFCJPA unanimously adopted its Fiscal Year 2023-2024 (FY24) budget (Attachment 2). The budget identifies revenues of $2,123,864, which includes operating revenues from interest earned and an equal contribution of $422,772.60 by each member agency. The contribution by each member agency has increased 6.8% from last year’s contribution amount of $395,926. This amount includes establishing and funding the 12.5% reserve as directed by the SFCJPA Board in November 2020.
The budget includes expenses for personnel, contract services, and administrative costs required to operate the SFCJPA. The SFCJPA’s personnel expenses have increased by 9.3% from last year due to salary and cost of living adjustment (COLA) increases. Contract services include legal and technical consultants, operations and maintenance of the Downstream Project completed in 2019, and costs for partnering with the United States Army Corps of Engineers (USACE) on the channel widening efforts through the USACE Continuing Authorities Program Section 205 (CAP 205). Prior to FY22, contract services were mostly paid for by Valley Water through separate funding and cost-share agreements, but these are now included in the budget so that costs can be evenly shared among the member agencies.
Approval of the proposed recommendations will allow Valley Water to pay its FY24 annual contribution of $422,772.60 to the SFCJPA.
ENVIRONMENTAL JUSTICE IMPACT:
There are no Environmental Justice Impacts associated with this item. Environmental Justice of the Project will be assessed and addressed in future Project board actions related to the Project execution.
FINANCIAL IMPACT:
The Project (Project No. 26284002) is included in the Capital Improvement Program’s Fiscal Year 2024-28 Five-Year Plan. Valley Water’s contribution as a Member Agency for FY24 is $422,772.60. Adequate funds have been included in the FY 2023-24 Adopted Budget for this expenditure and it does not change the overall total Project cost.
CEQA:
The recommended action does not constitute a project under CEQA, because it does not have the potential for resulting in direct or reasonably foreseeable indirect physical change in the environment.
ATTACHMENTS:
Attachment 1: SFCJPA FY 23-24 Contribution Invoice
Attachment 2: SFCJPA FY 23-24 Operating Budget
UNCLASSIFIED MANAGER:
Manager
Karl Neuman, 408-630-3059