Santa Clara Valley Water District’s Clean, Safe Creeks and Natural Flood Protection Program A 15-year program to preserve and protect our quality of life INDEPENDENT OVERSIGHT REPORT I FISCAL YEAR 2009-2010 I YEAR 9 INDEPENDENT OVERSIGHT REPORT I FISCAL YEAR 2009-2010 Clean, Safe Creeks and Natural Flood Protection Program Independent Monitoring Committee COMMITTEE MESSAGE FROM THE CHAIR MEMbERS January 2011 On behalf of the Independent Monitoring Committee, I present the ninth Annual David Ginsborg Oversight Report on the status of the “Clean, Safe Creeks and Natural Flood Protection Chair Program” (Program). Supported by more than two-thirds of Santa Clara County Voters in November of 2000, the Program is being implemented by the Santa Clara Valley James Foran Water District (District). Vice-Chair The November 2000 ballot measure created a “pay as you go” countywide special Teresa Alvarado parcel tax to fund initiatives to protect properties from floods, add trails, and safeguard creeks and ecosystems. As described in this report, the Committee is concerned that Robert Baldini several major flood protection projects, funded substantially by this Program, are in Marc Berman jeopardy of not being completed on time, or at all. More than at any time in the past, the District is at a critical crossroad and decisions made in 2011 will determine the Jeffrey Cristina likelihood of whether or not major projects will be completed, and if so, by when. Lonnie Gross In 2009-2010, the parcel tax generated $32.9 million dollars; a total of $259 million dollars has been collected since the program started receiving funds in Fiscal Year Nancy Hobbs 2001-2002. Unlike many government entities that borrow, the Program does not rely upon debt financing to accelerate the construction of capital projects, and thus Jane Kennedy projects are being constructed as sufficient money is accumulated to build a project. Mark Lazzarini At the end of the 15-year Program, in 2016, the tax will end and there will be no continuing debt payments limiting the District’s future. The completion of some of William Taylor the projects was also predicated upon receiving funds from the local, State, and Federal governments, funds which have become increasingly less certain. All four Terry Trumbull outcomes were promised to be completed with the funding provided over the fifteen-year period. Patrick Waite Additionally, the ballot measure created the Independent Monitoring Committee (IMC) and members are appointed by the District Board of Directors. Members were selected for their independence and willingness to speak candidly and I appreciate their service greatly over the past year. In the process of fulfilling our duty to monitor the results of the Program supported by the voters and residents of Santa Clara County, the Committee and four sub-committees met a total of six times throughout the year. Each sub-committee met at least once and after careful evaluation and deliberation, recommended an assessment of the activities to the full IMC for its adoption. This report details our findings for Fiscal Year 2009-2010 (July 1, 2009 – June 30, 2010) on the four major outcomes promised to the voters. We studied the activities of the District and submit the following findings for Fiscal Year 2009-2010. i INDEPENDENT OVERSIGHT REPORT I FISCAL YEAR 2009-2010 1. Homes, schools, businesses and transportation networks are protected from flooding. n One flood protection project is in construction, and two more are slated to begin construction in Fiscal Year 2010-2011. However, the flood protection projects that protect a majority of the parcels in San Jose are unlikely to receive sufficient funding to be completed on schedule, or possibly not at all. The IMC observed a number of challenges to the schedule, primarily for three federally-cost shared projects led by the U.S. Army Corps of Engineers (Corps). Lack of funding at the federal level and in the State’s Flood Control Subventions Program appears likely to delay or possibly stop outright both the Corps’ and the District’s work constructing these projects. n For Fiscal Year 2009-2010, the plans for major flood projects were presented at thirty-four public meetings; approximately 600 members of the public attended these meetings. n The average annual goal is 8,000 cubic yards or 10 percent of the District average sediment removal from channels. With Program funds, the District has removed 56,779 cubic yards program-to-date versus a program-to-date target of 72,000 cubic yards. After review, the IMC is satisfied that the sediment removed using Program funds helped maintain the water carrying capacity of flood channels, even though the amount of sediment removal was less than the annual target. n The District set aside $481,373 in Fiscal Year 2009-2010 for future creek maintenance. 2. There is clean, safe water in our creeks and bays. n The District made progress toward the goal of reducing pollutants from urban runoff in the Uvas/Llagas watersheds by providing assistance to south county cities for implementation of pollution prevention measures for Fiscal Year 2009-2010. n The District met its commitment, 100% percent of the time, to respond within 2 hours to hazardous material requests in the Uvas/Llagas watersheds. n The District has met its commitment to improve impaired water bodies for Fiscal Year 2009-2010. For example, treatment systems to reduce mercury in fish are now operating in two reservoirs and one lake in the Guadalupe River watershed and four stream restoration projects resulted in the removal of 100 kg of mercury in that watershed. n The District met its obligation of conducting four major cleanup events at 620 high visibility locations and met its five-day response goal having responded to 771 requests to clean up litter and graffiti 100% of the time during Fiscal Year 2009-2010. n The District fulfilled its promise to the voters to achieve reductions of pollutants in surface water in Fiscal Year 2009-2010 through continued partnerships with the Santa Clara County’s Green Business Program and the Santa Clara Valley Urban Runoff Pollution Prevention Program. 3. Healthy creek and bay ecosystems are protected, enhanced or restored as determined appropriate by the Santa Clara Valley Water District Board of Directors. n The District exceeded the annual goal of managing 1,466 acres of vegetation from all creek channels within the scope of the Program. Cumulatively the District has managed for the Program 15,240 acres, exceeding the target-to-date of 13,199 acres. The amount of vegetation as currently managed will exceed the fifteen-year, 22,000 acre Program goal. n The District has exceeded the Program goal of 100 acres of Environmental Restoration through both the planning and implementation of environmental enhancement grant projects. Completed projects include the Island Ponds Tidal Wetland Restoration Project, Lower Silver Creek Flood Protection Project Enhancements, ii INDEPENDENT OVERSIGHT REPORT I FISCAL YEAR 2009-2010 Upper Pajaro Watershed Vegetated Buffer Strip Project, Palassou Ridge Wetland Management Project, Stevens Creek Corridor Restoration Project (Blackberry Farm), Palo Alto Flood Basin Phragmites Removal Project, and Adobe Creek Upper Reach 5 Restoration Project. n In Fiscal Year 2009-2010 no new acres were created or restored, however, several projects moved forward in the planning and design phases. A total of 358.19 acres have been created or restored to date. n New indicators were added by the IMC in Fiscal Year 2008-2009 for this outcome to measure other factors included in the ballot measure such as protection for endangered species, removal of fish migration barriers, removal of non-native invasive plants, and re-vegetation of native species and will be included in subsequent reports. 4. There are additional open spaces, trails and parks along creeks and in the watersheds when reasonable and appropriate. n The District added 11.27 miles of public access to trails in Fiscal Year 2009-2010 for a cumulative total of 65.5 miles. These 65.5 miles represent excellent progress toward attaining the Program’s goal of 70 miles of trails and open space within the Program’s first nine years. As part of the evaluation of this outcome, the IMC reiterated the importance that funded trails be both bicycle safe and pedestrian friendly as well as amenable to other recreational activities where possible. Additionally, the IMC recommended criteria for new trails closely adhere to the Program’s stated objectives. In preparing the Report the IMC made a number of recommendations to the District including: n Exploring ways to further accelerate procurement of federal funds and/or aggressively pursue funding alternatives to achieve the goals of Outcome 1 relative to maximizing parcel protection. n Finding the means to offer funding for trail project planning to the community, including the use of Outcome 4 funds. In conclusion, the IMC would like to acknowledge the District’s responsiveness to our concerns. Specifically the IMC appreciates District’s willingness to address the serious funding shortfall and its impact; allocations for trail map development to inform the public of the newly created trails, and support for a comprehensive performance audit of the Program. We, as members of the IMC, take our voter mandated task very seriously. We carefully evaluate and report on the progress of promises made to the Santa Clara County residents. We hope that you find this report helpful and informative and we welcome your response. For more information, you can go to the District’s website at www.valleywater.org or contact the IMC at [email protected]. Finally if you are as concerned as we are about the prospect of a majority of the flood protection initiatives not proceeding as scheduled, I urge you to contact the District staff and their Board of Directors. I also encourage you to contact your Federal and State Representatives. Thank you again for taking the time to read our Fiscal Year 2009-2010 report for the Program. David Ginsborg Chair iii INDEPENDENT OVERSIGHT REPORT I FISCAL YEAR 2009-2010 Outcome1 Homes, schools, businesses and transportation networks are protected from flooding Outcome 1 of the Clean, Safe Creeks and Natural Flood Protection Program (Program) is designed to protect homes, schools, businesses and transportation networks from flooding. The Program includes nine new flood protection projects to safeguard approximately 16,000 parcels, including homes, schools, businesses, agricultural lands and public facilities. Vital transportation networks (220 miles of streets and highways in all) will also be protected by these projects. These projects are being developed to provide as many benefits as possible beyond flood protection including ecosystem restoration, water quality improvement, aesthetic enhancement, and recreational opportunities. A table at the end of Section 1.1 that identifies each project’s benefits toward Outcome 2, 3, or 4 objectives. Such benefits are usually identified as a project moves from the planning to the design and/or construction phases. In addition to the nine capital projects, the activities in Outcome 1 include sediment removal from creeks to preserve flood flow capacity and maintenance activities for the nine new flood protection projects once they are completed. These activities will help to ensure that channels, both improved and unimproved, can convey floodwaters during high flow events. Statewide, capital project construction bids continue to be very competitive, and are often well below engineers’ estimates, due to the worldwide recession. It is not known how long these more favorable conditions for project construction will prevail. The District continues to progress projects towards construction; some cost savings may be realized if the current market conditions are sustained for the next several years. The trend in construction costs for Program projects is subject to ongoing analysis by the District for review by the Independent Monitoring Committee. Submitted by Outcome 1 Subcommittee: Mark Lazzarini (Chair), Robert Baldini, Jeff Cristina, Jim Foran, and Dave Ginsborg 1 INDEPENDENT OVERSIGHT REPORT I FISCAL YEAR 2009-2010 OUTCOME1 A1.1 Activity 1.1 Provide flood damage reduction by increasing the stream’s ability to convey the 100-year flow. Fifteen-Year Goal Protect approximately 16,000 parcels through the completion of up to nine new flood protection projects. These protective activities include seven construction projects, one planning/design/partial construction project, and one planning/design project. Three of the seven construction projects are dependent on federal funding for completion of flood improvements; the lower estimate of targeted parcels (9491 parcels) to be protected by 2016 reflects a more realistic measure of success. In the original Program Plan, the total project cost for all nine projects was $328.4 million, of which the federal contribution was anticipated to be $83.7 million, or 25.5% of the total project cost. Although reduced federal funding may delay completion of three of the Program’s projects, the District will continue to pursue these funds after the Program’s sunset in 2016. How This Activity Will be Measured This activity will be measured by yearly progress of parcels protected in comparison to the Program schedule that was submitted to the voters. Additionally, the amount of funding expended for each project will be tracked annually. Committee Assessment/Recommendation of this Activity Most of the capital projects are on schedule, and construction was initiated for the Upper Guadalupe River Reach 6 work in spring 2010; construction for the Calabazas Creek project and the Permanente Creek project is anticipated to begin in summer of 2010 and summer of 2011, respectively. The Independent Monitoring Committee (Committee) monitors the challenges to the schedule that shortfalls in the U.S. Army Corps of Engineers (Corps) and State Flood Control Subventions Program funding are causing. Congressional appropriations for the Corps’ projects have all been below anticipated funding levels in recent years. The Llagas Creek project continues to be at risk due to a 2005 reevaluation of its benefit/cost ratio by the Corps, which was determined to be less than 1.0. The District has moved forward on construction work in Fiscal Year 2009-2010, but no project has yet been completed to fulfill its promise to the voters on this activity for Fiscal Year 2009-2010. ACTIVITY 1.1 15-year Program Graph Number of Parcels Protected from Flooding 18,000 16,000 Original Program Goal 14,000 Revised Program Goal 12,000 Actual 10,000 8,000 6,000 4,000 2,000 0 Fiscal Year 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2 OUTCOME1 A1.1 INDEPENDENT OVERSIGHT REPORT I FISCAL YEAR 2009-2010 While completion of all projects by 2016 is subject to federal and state funding, all projects are anticipated to have completed all planning, environmental, and design work. Committee Recommendation The Committee urges the District to explore ways to further accelerate procurement of federal funds and/or aggressively pursue funding alternatives to achieve the goals of Outcome 1 relative to parcel protection. The Committee also supports the District’s watershed-wide approach for project alternative evaluations, which includes working with cities to preserve pervious areas. The Committee recommends that the District analyze acquisition strategies in light of real estate cycles. MEASURE What is being measured? Number of parcels that have flood damage reduction upon completion of flood protection projects as planned in the Program. Target Provide flood damage reduction for 15,976 parcels by 2016. Challenges to Intended Outcome Challenges to the 15-year Program include the ability to secure federal funding and state subvention reimbursements, the costs of labor (internal and external to the District), and changes in environmental regulations and restrictions. Due to the current recession, capital project construction bids have been very competitive and are often well below the engineers’ estimates. It is not known how long this condition will be sustained. STATUS – CURRENT REPORTING PERIOD: FISCAL YEAR 2009-2010 Current Performance Although construction began on the Upper Guadalupe River project this year, no parcels received flood damage reduction in Fiscal Year 2009-2010. During this ninth year, the Program funded planning, design, and/or construction work on eight of the nine identified capital projects. The status of each of the nine projects and the amount spent in Fiscal Year 2009-2010 (in parentheses) are as follows: Upper Guadalupe River: The U.S. Army Corps of Engineers (Corps), in coordination with the District, completed the construction of Reach 10B (Almaden Expressway to Stream Gage Station 23B, downstream of Koch Lane) in January 2010. Heavy storms in October 2009 and January 2010 caused erosions along the project alignment. The Corps and District staff are working with regulatory agency staff to address damages from the October 2009 and January 2010 storms. Lack of federal funds prevented the Corps from completing the design of improvements in Reach 12 (Branham Lane to Blossom Hill Road) and beginning construction in summer 2010. Pending available federal funds, the Corps plans to complete the design and begin construction of Reach 12 in summer 2012. Lack of federal funds has caused a delay of two years to the entire project; the federal project (Reaches 7-12) may not be completed until 2019. District staff completed the design for flood protection improvements on Reach 6 (I-280 to the SPRR Bridge, downstream of Willow Street), including the extension of the West Virginia Street Bridge, in December 2009. Construction of Reach 6 began in May 2010 and is scheduled for completion in May 2012. ($2.9 million expended in Fiscal Year 2009-2010) Berryessa Creek: District staff continues to support the Corps in their efforts to complete the General Reevaluation Report (GRR) and the Environmental Impact Report/Statement (EIR/S) for this project. The Corps is performing an economic analysis and will initiate general civil design to determine the National Economic Development (NED) plan. Staff has been coordinating with the Corps to ensure that the local project objectives are met. ($125,000 expended in Fiscal Year 2009-2010) Coyote Creek: Staff conducted several community meetings this year. Based on input received from the community on the conceptual alternatives for flood protection along Coyote Creek, the project team is currently developing and analyzing feasible alternatives. Work continues on the annual geomorphic cross sectional surveys and on a fourth year of a fishery baseline study. Staff is continuing coordination with the City of San Jose and other stakeholder groups in feasible alternatives’ development. ($859,000 expended in Fiscal Year 2009-2010) 3 INDEPENDENT OVERSIGHT REPORT I FISCAL YEAR 2009-2010 OUTCOME1 A1.1 STATUS – CURRENT REPORTING PERIOD: FISCAL YEAR 2009-2010 Sunnyvale East Channel and Sunnyvale West Channel: Staff has developed and evaluated feasible alternatives for flood protection improvements on both channels. The staff-recommended alternative has been identified and will be presented to the Board of Directors for consideration in early FY 2010-2011. The staff-recommended flood-protection elements include the use of the former Salt Pond A4 as a flood detention basin, and construction of floodwalls and levees along sections of both channels. ($905,000 expended in Fiscal Year 2009-2010) Upper Llagas Creek: The Corps received $242,000 in federal funding in FY 2009-10, and hired a consultant to proceed with preparation of an Environmental Impact Report/Statement (EIR/S) for the project. The District and the City of Morgan Hill entered into a cost-sharing agreement to fund project design using local monies, as the Corps has not been receiving adequate funding to progress the design. A $6.5 million consultant design contract was approved by the Board in May 2010 and the design work is underway. District staff is continuing to acquire lands for the project. ($546,000 expended in Fiscal Year 2009-2010) Calabazas Creek: Staff completed the design of flood protection elements and acquired all necessary permits for construction. The flood protection elements of the project were advertised for construction bids in late May 2010; construction work will begin in late summer 2010, and will be completed by January 2011. The second of a 3-year phase of eroded bank repair is scheduled to be completed in August 2010. ($1.4 million expended in Fiscal Year 2009-2010) San Francisquito Creek: The Corps has completed an existing conditions hydraulics analysis, a geotechnical investigation, and a sediment transport study for the creek. The District’s consultant has completed a hazardous materials investigation, and another consultant is undertaking cultural resources investigations. The San Francisquito Creek Joint Powers Authority (JPA) has retained consultants to complete the design and environmental documentation for an early implementation project (Downstream of Hwy 101) which, if it meets certain criteria, would be eligible for construction cost reimbursements or credits by the Corps. District staff and the JPA have developed a range of feasible alternatives for the project upstream of Highway 101. All expenditures to date for this project have been charged to the District’s Watershed and Stream Stewardship Fund. ($0 expended in Fiscal Year 2009-2010) Permanente Creek: In February 2010, the Board of Directors awarded a consultant design contract for $4.3 M for the design of the four off-stream storage detention basins that have been proposed for the project. The Board of Directors certified the Final Environmental Impact Report (EIR) for the project in June 2010. Staff has completed the 60 percent in-house design for floodwalls and channel improvements. ($1,838,000 expended in Fiscal Year 2009-2010) Current project schedules, maps of Program projects, and detailed information about Program projects are shown on pages 7 through 24. Trend and Explanation There are nine flood management projects in the Program: Permanente Creek (1,664 parcels), Sunnyvale West Channel (11 parcels), Calabazas Creek (2,483 parcels), Sunnyvale East Channel (1,618 parcels), Upper Guadalupe River (6,989 parcels), Berryessa Creek (1,814 parcels), Upper Llagas Creek (1,397 parcels), Coyote Creek (planning/design/partial construction) and San Francisquito Creek (planning/design only). The federally-sponsored projects are Upper Guadalupe River (Reaches 7-12), Berryessa Creek, and Upper Llagas Creek. The 15-year target performance line indicates the number of parcels that will be removed from the floodplain upon scheduled completion of each capital project. The 16,000 parcels slated for protection in Program year fifteen is the result of the expected culmination of multiple years of construction. If funding from all three federally-sponsored projects is not received in time, the targeted outcome will be reduced to 5,876 parcels. Depending on the project, this threshold of impact occurs between Fiscal Year 2012 and 2014. The Independent Monitoring Committee and District staff will closely monitor the trend. Where possible, projects will be completed ahead of schedule. Financial Consideration Projected estimated annual allocation (inflated) for this activity was $23.2 million for Fiscal Year 2009-2010. The total amount spent in Fiscal Year 2009-2010 was $10.5 million and the amount appropriated to reserves as planned was $14.6 million. For detailed financial information, please see Appendix pages A4 and A5. 4 OUTCOME1 A1.1 INDEPENDENT OVERSIGHT REPORT I FISCAL YEAR 2009-2010 Capital Program Schedule Clean, Safe Creeks and Natural Flood Protection Program Outcome 1: Capital Projects Schedule and Parcels Protected ACTIVITY 3.2 Parcels Protected by 2016 YEAR Capital Project Schedule Original Revised 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 Program Goal Program Goal 1 Permanente Creek Original Design & Construction 1664 (SF Bay to Foothill Expwy2) Current Design & Construction 22203 2 San Francisquito Creek1 Original Design 0 (SF Bay to Searsville dam) Current Design & Partial Construction 100 3 Sunnyvale West Channel Original Planning, Design & Construction 11 (Guadalupe Slough to I-280) Current Planning, Design & Construction 11 4 Sunnyvale East Channel Original Planning, Design & Construction 1618 (Guadalupe Slough to Hwy 101) Current Planning, Design & Construction 1618 5 Calabazas Creek Original Planning, Design & Construction 2483 (Miller Avenue to Wardell Rd.) Current Planning, Design & Construction 2483 6 Upper Guadalupe River1 Original Planning, Design & Construction 6989 (I-280 to Blossom Hill Rd.) Current Planning, Design & Construction 05 7 Berryessa Creek1 Original Planning, Design & Construction 1814 (Calavaras to Old Piedmont) Current Planning, Design & Construction 16624 8 Coyote Creek Original Planning, Design & Partial Construction 0 (Montegue to Hwy 280) Current Planning, Design & Partial Construction 0 9 Upper Llagas Creek1 Original Planning, Design & Construction 1397 (Buena Vista to Wright Ave.) Current Planning, Design & Construction 1397 Total 15,976 949 1 2000 project schedule 2010 project schedule Notes: 1 U.S. Corps of Engineers Partner Project 2 Construction planned only to El Camino Real 3 Permanente Creek Project — upstream detention basins increased protected parcels 4 Berryessa Creek Project — Parcel change based on Corps' re-evaluation of project study area and cost/benefit ratio 5 Upper Guadalupe River — dependent on federal funding Construction shown does not include landscape establishment period of 3 years 5 INDEPENDENT OVERSIGHT REPORT I FISCAL YEAR 2009-2010 OUTCOME1 A1.1 Clean, Safe Creeks and Natural Flood Protection Program Flood Protection Projects 6