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Chief Administrative Office recommending the Board approve and authorize the Chair to sign the annual Agreements with the El Dorado County Resource Conservation District and Georgetown Divide Resource Conservation District in the amount of $325,400 each for a total cost of $813,500 for a term to expire June 30, 2021 to identify responsibilities and establish areas of cooperative effort for all parties regarding erosion, sediment control and watershed management.
FUNDING: General Fund.
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DEPARTMENT RECOMMENDATION
Chief Administrative Office recommending the Board approve and authorize the Chair to sign the annual Agreements with the El Dorado County Resource Conservation District and Georgetown Divide Resource Conservation District in the amount of $325,400 each for a total cost of $813,500 for a term to expire June 30, 2021 to identify responsibilities and establish areas of cooperative effort for all parties regarding erosion, sediment control and watershed management.
DISCUSSION / BACKGROUND
The attached agreements cover the contributions to the RCDs for FY 2016-17 as well as an advance of funds for FY 2017-18 through FY 2020-21 . Historically the funding for these contracts has been increased each year based on the County’s General Fund change in assessed value. The FY 2016-17 contribution is based on growth of 5.1539%. The recommended funding level for the RCD agreements is set at the prior year base level ($77,363 for each district) increased by the change in assessed value of 5.1539% or $3,987 per district for a new total of $81,350 per district or $162,700.
The attached agreements also include an advance of funds for FY 2017-18 through FY 2020-21 totaling $650,800. The Resource Conservation Districts received a grant to help with restoration and reforestation after the King fire. The grant funds will be received on a reimbursement basis. The RCD's do not have sufficient cash flow to enable them to complete the work and wait for the reimbursement from the granting agency. Therefore the RCD's have requested an advance of future year funding to provide the necessary cash flow to allow them to complete the restoration activities. This advance will take the place of the annual County contributions to the RCD's. The advance of $650,800 is based on the FY 2016-17 annual amount of $81,350 per district. Beginning in FY 2017-18 thru 2020-21, the annual allocation amount will be adjusted based on the change in assessed value. If additional growth is owed, the County will make an additional annual payment related to the growth only. If the assessed value goes down, the RCD's will reimburse the County the difference between the annual advance of $81,350 and the revised annual allocation amount.
Before Proposition 13 was enacted, State legislation through Division 9 of the Public Resources Code gave RCD's the option of regular assessments to contribute to the support of the RCD's programs. This assessment was limited to two-cents ($.02) on each hundred dollars ($100) of assessed valuation of land within the RCD's boundaries. During the 1960's the RCD's were requested by the then Board of Supervisors to relinquish this capability and be funded by the Board of Supervisors. The RCD's agreed to continue on this basis, rather than divert a share of taxes after Proposition 13. Each year, the RCD's bring forth an annual agreement with a budget based on the percentage change of the prior year's general fund growth in assessed property valuation. This annual contribution supports the districts' programs.
The El Dorado County and Georgetown Divide Resource Conservation Districts (RCDs) have submitted their annual agreements for consideration and approval by the Board of Supervisors. The purpose of the annual agreements is to identify responsibilities and establish areas of cooperative effort for all parties regarding erosion and sediment control and watershed management. The RCDs have played an important role in the project review process and have been instrumental in assisting the County in the development of erosion and sediment control measures and policies.
ALTERNATIVES
N/A
OTHER DEPARTMENT / AGENCY INVOLVEMENT
N/A
CAO RECOMMENDATION
The Chief Administrative Office recommends the Board approve and authorize the chair to sign the attached agreements.
FINANCIAL IMPACT
The FY 2016-17 amount of $162,700 ($81,350 per district) is included in the Recommended budget funded with General Fund. The FY 2017-18 through FY 2020-21 advance amount of $650,800 has also been included in the FY 2016-17 Recommended budget funded with General Fund reserves. Over the next 4 years, the amount that would have normally gone to the RCD's will instead be added back to the General Fund Reserve to replenish this account.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Upon execution by the Chair, the Board Clerk's office will forward copies to the Chief Administrative Office for distribution and administration by the Chief Administrator’s Office and Development Services Department.
CONTACT
Laura Schwartz
Chief Administrative Office