To: Board of Supervisors
From: Warren Lai, Public Works Director/Chief Engineer
Report Title: Reimbursement Agreement with East Bay Regional Park District, Knightsen area.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Public Works Director, or designee, to execute a reimbursement agreement between the County and East Bay Regional Park District (EBRPD) to reimburse them for pumping activities benefitting the Knightsen area in an amount not to exceed $86,789.86 for the 2022-2023 winter and an amount not to exceed $25,000 each year thereafter, using remaining Knightsen Town Community Services District (CSD) funds.
DETERMINE that using remaining CSD funds for this purpose benefits lands, inhabitants, and taxpayers within the territory of the former CSD.
FISCAL IMPACT:
Reimbursement requests may be paid using remaining CSD funds until depleted. No general fund monies are involved. Project No. 7505-6F8228
BACKGROUND:
The EBRPD owns property in the Knightsen area, identified as Assessor’s Parcel Numbers 020-172-001 and 020-171-004. From time to time during heavy rain events, stormwater accumulates on the surface of the property and other properties in the Knightsen area. Historically, EBRPD, and the prior owner of the property, have accepted stormwater from adjacent areas onto the property and pumped the stormwater over a levee and into No Name Slough. Accepting the stormwater onto EBRPD property and pumping the water into No Name Slough benefit surrounding properties by preventing an accumulation of stormwater that could impact other properties and the safety of Knightsen residents. Historically, the CSD would reimburse a portion of these pumping costs using funds generated from a special tax on Knightsen area parcels that was intended to fund pumping and flood control activities in the Knightsen area.
In the winter of 2022-2023, the Knightsen area experienced unusually significant rainfall over a prolonged period of time, resulting in a substantial amount of stormwater in the area. To help the Knightsen area residents, EBRPD accepted stormwater onto its property and, in that winter alone, incurred approximately $170,000 in costs for various activities, including to pump the stormwater into No Name Slough.
In 2023, the CSD pursued its own dissolution before the Contra Costa County Local Agency Formation Commission (LAFCO). In the dissolution proceeding, LAFCO dissolved the CSD and named the County as the successor agency responsible for winding up the CSD’s affairs. Following CSD dissolution, the County received all remaining CSD funds - approximately $176,448.80 - which may be used for any lawful purpose. Under LAFCO law, to the extent practicable, these funds should be used for the benefit of lands, inhabitants, and taxpayers within the territory of the former CSD. (Gov, Code, §§ 57457(b). 57463.)
EBRPD’s pumping activities benefit lands and inhabitants within the former CSD. During the 2022-2023 winter, those activities were a benefit to the Knightsen area, but they required EBRPD to incur a significant financial cost. Under the reimbursement agreement, EBRPD may request reimbursement of a portion of its pumping cost from remaining CSD funds held by the County. For the winter of 2022-2023, EBRPD can request up to $86,789.86, and each year thereafter EBRPD can request up to $25,000 (until remaining CSD funds are depleted or the agreement is terminated, whichever occurs first).
This use of CSD funds is consistent with LAFCO law. Further, using CSD funds for this purpose is consistent with the purpose of the CSD’s special tax. For these reasons, Public Works Department staff recommend that the Board approve the reimbursement agreement.
CONSEQUENCE OF NEGATIVE ACTION:
If the reimbursement agreement is not approved, EBRPD will not be reimbursed for stormwater pumping costs that benefit Knightsen.