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Supervisor Sweeney recommending the Board continue placing the revenues from the Sacramento Municipal Utility District (SMUD) settlement agreement in the established special fund and that such revenues be used for road maintenance and law enforcement within the area of the Upper American River Project.
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BACKGROUND
In the late 1950’s the County, the United States Forest Service (USFS), Michigan California Lumber Company (now Sierra Pacific Industries), and the Sacramento Municipal Utility District (SMUD) reached agreements as to the construction and maintenance of the roads within the Upper American River Project (UARP). There was no money provided for such maintenance and no impact money to the County for the implementation of the UARP. It was thought that the tourism dollars derived from UARP users would offset County costs; that obviously did not happen.
During the recent re-licensing of the UARP by SMUD through the Federal Energy Regulatory Commission the County concluded a settlement agreement with SMUD. The electronic version of that agreement is on the County Water Agency Website and is cited as the “El Dorado-SMUD Cooperation Agreement”.
Attached is Article IV of that agreement. We have received approximately $2.9 million per section 4.1 and are eagerly awaiting annual payments under section 4.2. The annual payments will begin after SMUD receives its new license. Per section 4.4 payments are to be used for “activities related to the UARP”.
Over the years our maintenance group at the Department of Transportation (DOT) has succeeded in obtaining grants through the Federal Forest Highway Fund to make improvements and provide maintenance on the primary roads within the UARP; however, these grants have and will require local matching funds. This would be a good use of the SMUD settlement funds.
On April 23, 2009 the Sacramento Valley Regional Water Quality Control Board issued a cleanup and abatement order (CAO) regarding the Rubicon Trail. This order led to the County obtaining an easement from the USFS this year. Between the CAO and the easement the County needs to provide continuing maintenance and law enforcement on the Rubicon Trail; this would also qualify for use of the SMUD settlement funds.
Besides keeping the funds in a special account, I propose the following as guidelines for future expenditures:
1 Per section 6.3 of the El Dorado Intra-County Coordination Agreement the Georgetown Divide Public Utility District would be paid 9/59 ($90,000) of the payment from SMUD derived from section 4.2 but not including the monies derived from section4.3; and
2 for Rubicon Trail Maintenance 20/59 ($200,000); and
3 for Law enforcement 15/29 ($150,000); and
4 for future matching funds for mainline roads in the UARP 15/29 ($150,000) .
These amounts would be accelerated per section 4.5. By example the total payment at August 2012 would have been $679,175 yielding 1) $103,603; 2) $241,740; 3) $172,672; 4) $172,672