1. Upper San Joaquin River Regional Flood Management Plan Regional Flood Protection Now and in the Future Workshop 7: Financial Planning Wednesday April 16 th, 2014 Lower San Joaquin Levee District 11704 Henry Miller Ave Dos Palos, CA 93620

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

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

4. Local Agency Flood Management Operations and Maintenance 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 RFMP Status Update

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 9 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 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 LSJLD Finance

12. Local Agency Flood Management Operations and Maintenance 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 Merced Stream Group Finance

13. Local Agency Flood Management Operations and Maintenance 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 Madera County Finance

14. Local Agency Flood Management Operations and Maintenance 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 Finance Plan

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 PROGRAMSCOPE Wetland Reserve Program (USDA NRCS) Protection and restoration of wetlands Emergency Wetland Protection – Floodplain Easement Program (USDA NRCS) Protection and restoration of floodplain habitat Environmental Quality Incentives Program (EQIP - USDA NRCS) Restoration of wetland habitat on private lands North American Wetland Conservation Act (NAWCA – USFWS) Protection and restoration of wetlands and riparian habitats Land and Water Conservation Fund (USFWS) Protection, restoration and recreation around rivers and other public lands

26. Federal Restoration Programs PROGRAMSCOPE Central Valley Project Implementation Act (CVPIA) – Habitat Restoration Program and Conservation Program (USFWS and USBR) Protection and restoration of habitats impacted by the CVP (wetland/riparian, ES, uplands) Anadromous Fish Restoration Program and Anadromous Fish Screen Program (USFWS) Protection and restoration of anadromous fish habitat, screening existing diversions San Joaquin River Restoration Program (USBR, USFWS, NMFS, DWR and CDFW) Actions that contribute to the restoration of native fish population sin the San Joaquin River Endangered Species Act Section 6 Grand Program (USFWS and CDFW) Planning and implementation of actions that recover endangered species

27. State Restoration Programs PROGRAMSCOPE Habitat Conservation Fund (CA WCB) Protection and Restoration of sensitive habitats in CA California Riparian Habitat Conservation Plan (CA WCB) Protection and Restoration of riparian habitats Inland Wetlands Conservation Program (CA CB) Protection and Restoration of wetland habitats San Joaquin River Conservancy Act (CA WCB) Protection and Restoration of riverside lands within the San Joaquin River Parkway Prop 84 – California Conservation Corps funding (CA CNRA) Conservation activities implemented by the CCC or regional/local corps River Parkways, Urban Greening, Environmental Enhancement and Mitigation Program (CA CNRA) River-related and transportation-related conservation projects and activitie4s Watershed and Environmental Improvement Program (SFPUC) Protection and restoration of riverside lands within the Tuolumne River watershed

28. FloodSAFE Implementation Programs PROGRAMSCOPE Early Implementation (EIP)Repair and improve urban levees to 200-year level of protection, and repair non-urban levees to 1955/57 standard. Flood Control Subventions (FCP) Cost share with locals toward capital cost of non-SPFC USACE projects construction (acquisition of land, easement, right of way, relocation and disposal) Flood Corridor (FCP)Non-structural flood risk reduction projects containing ecosystem and/or agricultural land conservation components Local Levee Assistance (LLAP)Evaluation of levees and critical repair and improvement of levees USACE/CVFPB ProjectsCost share with USACE on SPFC USACE projects USACE/CVFPB StudiesCost share with USACE on SPFC USACE

29. FloodSAFE Implementation Programs PROGRAMSCOPE Yuba Feather Flood Protection (YFFPP) Evaluation of levees, design of flood structures, critical repair and improvement of levees within the Yuba Feather River Systems and Colusa Basin Small Community Flood Risk Reduction (SCFRR) Repair small community levees to 100-year level of protection Systemwide Flood Risk Reduction (SWFRR) Implement recommendations of Basin-wide Feasibility Studies Urban Flood Risk Reduction (UFRR) Repair and improve urban levees to 200-year level of protection Flood System Repair Project (FSRP) Evaluate (feasibility), design, and construct repairs of non-urban SPFC Facility (levees, channels, structures, etc.) deficiencies

30. FloodSAFE Implementation Programs PROGRAMSCOPE Flood ER – DeltaERProvide support for local EAPs, and Fund communications equipment to further interoperability Flood ER – Forecast- Coordinate Operations To further participation of reservoir operators (affecting CV) in the F-CO program, especially in obtaining necessary decision support system tools & equipment and field measuring equipment Flood ER – Statewide ER Grants Provide support for local EAPs or related Flood Preparedness and Response activities

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 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 Schedule

36. Status of RFMP Process RFMPTimeline Document Regional Setting and Identify Flood Management Issues (Land Use, Environmental, O&M, Emergency Management) Summer 2013 Identify Potential Actions/ System Improvements/studiesFall 2013 - Winter 2014 Develop Prioritization ProcessFall 2013 - Winter 2014 Prioritization of System ImprovementsSpring 2014 Develop Finance PlanSpring 2014 Finalize RFMPSummer 2014

37. Questions?