Title
a. Authorize reallocating $3,071,120 of General Fund Strategic Reserves to provide advance funding to the Public Works, Facilities and Parks Department (PWFP) to complete the Fiscal Year (FY) 2022-23 Winter Storm Repair Projects in Facilities ($2,951,152) and Parks ($119,968) to be repaid with reimbursements from the Federal Emergency Management Agency (FEMA) and other state and federal agencies;
b. Authorize the County Administrative Office (CAO) and Auditor-Controller to make fund balance designations in FY 2023-24 included in Attachment A (4/5th vote required); and
c. Authorize and direct the Auditor-Controller to amend the FY 2023-24 adopted budget by increasing appropriations and estimated revenues and making the appropriate transfers included in Attachment A (4/5th vote required).
Report
RECOMMENDATION:
a. Authorize reallocating $3,071,120 of General Fund Strategic Reserves to provide advance funding to the Public Works, Facilities and Parks Department (PWFP) to complete the Fiscal Year (FY) 2022-23 Winter Storm Repair Projects in Facilities ($2,951,152) and Parks ($119,968) to be repaid with reimbursements from the Federal Emergency Management Agency (FEMA) and other state and federal agencies;
b. Authorize the County Administrative Office (CAO) and Auditor-Controller to make fund balance designations in FY 2023-24 included in Attachment A (4/5th vote required); and
c. Authorize and direct the Auditor-Controller to amend the FY 2023-24 adopted budget by increasing appropriations and estimated revenues and making the appropriate transfers included in Attachment A (4/5th vote required).
SUMMARY:
The Board of Supervisors authorized the use of General Fund Strategic Reserves as the advanced funding source for the Fiscal Year (FY) 2022-23 Winter Storm Projects pending FEMA and other state and federal agency reimbursement. Projects that were not completed by June 30, 2023, were carried forward into FY 2023-24. The Public Works, Facilities and Parks Department (PWFP) requests to carry over unused General Fund Strategic Reserve funds of $3,017,120 that were previously allocated by the Board of Supervisors. The proposed action does not increase the overall request from Strategic Reserves for these winter storm events.
DISCUSSION:
California experienced winter atmospheric river events beginning on December 26, 2022, and continuing into January 2023. The storms damaged vital infrastructure and facilities in the County of Monterey and other agencies. On January 10, 2023, the Board of Supervisors (Board) ratified a Proclamation of a Local Emergency issued by the County Administrative Officer (CAO) on January 4, 2023. The Board approved using $21,752,475 from the Strategic Reserve on February 14, 2023 for advanced funding of winter storm repair projects; $14,752,475 for PWFP and $7,000,000 for Water Resource Agency (WRA).
Another group of winter storms began on March 9, 2023, and continued into mid-March 2023, exacerbating the damages from December 2022/January 2023 and causing new damages. Furthermore, on or about March 10, 2023, the Pajaro River Levee failed, causing interior flooding of homes and businesses in the unincorporated community of Pajaro and surrounding homes and agricultural properties. A Local Emergency was proclaimed by the CAO on March 9, 2023, and ratified by the Board on March 14, 2023. PWFP estimated repair costs of $20,131,960 and on May 23, 2023, the Board approved advance funding using Strategic Reserves to complete these repairs.
Projects not completed by the end of FY 2022-23 carried forward into the current FY 2023-24. Staff requests the Board authorize budget amendments and fund balance designations to fund the completion of these projects. Project details and funding needs are summarized below:
General Fund - Facility Services
Repairs to County facilities in Pajaro, including Pajaro Porter Mansion and Kents Court Apartment Community continued into FY 2023-24. Strategic Reserves were provided for debris removal; environmental, structural and Mechanical, Electrical, and Plumbing (MEP) assessment and repairs; water intrusion and moisture mitigation; and power washing and sanitizing. The remaining Strategic Reserve allocation is $5,451,152 and staff requests to carry forward $2,951,152 of the balance to complete repairs. Insurance proceeds of $2,500,000 were received in FY 2023-24, which offsets the need for $2,500,000 from the Strategic Reserves and allows for the balance to be relinquished back to the Strategic Reserves.
General Fund - Park Operations
Toro Regional Park, Royal Oaks Parks and property adjacent to Laguna Seca required emergency protective measures, storm drainage repairs, and debris removal. Strategic Reserves of $185,000 were allocated in FY 2022-23, $16,419 was expended, leaving a balance of $168,581. PWFP is requesting Board authorization to carry forward $119,968 in Strategic Reserves to fund the work completed in FY 2023-24 and relinquish the balance of $48,613.
Lake Nacimiento Resort
Tree removal, rental vessel repairs, road repairs, and navigations/signage replacement were completed in FY 2023-24. The remaining Strategic Reserve balance of $125,008 can be returned to the General Fund.
County Service Area (CSA) #45 Oak Hills Open Space
Emergency culvert repairs are completed and the remaining Strategic Reserve balance of $6,785 can be returned to the General Fund.
CSA #50 Rioway Tract No. 2
Strategic Reserves for minor debris removal from the December storms estimated at $2,000 can be returned.
Pajaro County Sanitation District (PCSD)
In FY 2022-23, PCSD received $3,235,112 in California Disaster Assistance Act (CDAA) funding and $1,177,500 in Strategic Reserve advance funding for emergency sewer line repairs, bypass pumping, protective measures, temporary sewer main relocation, and other projects. These projects were completed in FY 2023-24 and the remaining Strategic Reserves of $363,412 can be returned to the General Fund.
CSA #75 Chualar
During the December/January Storms, $1,000,000 in Strategic Reserve advanced funding was provided to Chualar for wastewater pond berm restoration, perimeter fencing, transferring pipe, entrance road repairs, and debris removal. The repairs were not completed by the time the March Storms arrived. The revised costs provided in the March Strategic Reserve request included the $1,000,000 from December 2022. As a result, there was an overstatement of the need for the Chualar wastewater ponds. Staff requests $500,000 of these funds be reallocated to other winter storm projects identified after the initial report: CSA #34 Rancho Rio Vista/Carmel Knolls tree removal, culvert and storm drain repair ($30,000); CSA #47 Carmel Views/Mar Vista tree removal, roadside vee-gutter and guardrail repair ($45,000); CSA #50 Rioway Tract No. 2 tree/debris removal and fence repair ($75,000); CSA #15 Serra Village/Toro Park debris removal, drainage swale and culvert clearing ($250,000); and Kents Court emergency flood debris remediation and repairs ($100,000). The balance of $497,279 can be returned to the General Fund Strategic Reserve.
The March Storm Event caused additional damages, and $1,800,000 was provided in CDAA funding and $950,000 in Strategic Reserve advance funding for the Chualar Aeration Pond Repair project. The project is ongoing, but the CDAA funds are sufficient to fund the remainder of the project. There is a balance of $125,586 in Strategic Reserves that can be returned.
OTHER AGENCY INVOLVEMENT:
PWFP coordinated this recommendation with the County Administrative Office Budget & Analysis Division. This item went to and was supported by the Budget Committee at their meeting January 31, 2024.
FINANCING:
The Strategic Reserve balance is $62,527,979. Reallocating the unused General Fund Strategic Reserve funds of $3,071,120 (General Fund Facilities $2,951,152 + Parks $119,968) to complete winter storm projects will reduce the balance to $59,456,859. However, PWFP is returning $1,120,067 in Strategic Reserves provided to Non-General Funds for winter storm projects no longer requiring the advance funding for various reasons, which will then increase the balance to $60,576,926. Any unused Strategic Reserve advances provided to PWFP General Fund will automatically return to the General Fund at year-end.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
Utilizing General Fund Strategic Reserves to advance fund the FY 2022-23 Winter Storm repair projects, pending FEMA and other state and federal agency reimbursement, aligns with the County’s Infrastructure and Public Safety initiatives which seeks to improve the quality of life for County residents and create safe environments.
__Economic Development
__Administration
__Health & Human Services
X Infrastructure
X Public Safety
Prepared by: Jessica Cordiero-Martinez, Finance Manager III (831) 755-4824
Approved by: Randell Ishii, MS, PE, TE, PTOE, Director of Public Works, Facilities and Parks
The following attachment is on file with the Clerk of the Board:
Attachment A: Resolution with Attachment A