CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 825

Author:(Mullin)

As Amended Ver:August 20, 2019

Majority vote

SUMMARY:

Makes numerous changes to the San Mateo County Flood Control District (FCD) Act.

The Senate Amendments:

Specify that the State Lands Commission may approve, propose amendments to, or reject the selection of a right-of-way. Make numerous technical and conforming changes.

COMMENTS:

San Mateo Flood Control District. The FCD is a countywide special district that was created in 1959 by the Legislature in order to provide a mechanism to finance flood control projects within the County. There are currently three active flood control zones within the district: The Colma Creek Flood Zone was created in 1964 to construct flood control facilities in Colma Creek to alleviate flooding in the City of South San Francisco; the San Bruno Creek Flood Control Zone was established in 1967 to finance the construction of channel and culvert improvements in the lower reach of San Bruno Creek; and, the San Francisquito Creek Flood Zone was created in 1999 to control flooding along the San Francisquito Creek.

Sea Level Rise in San Mateo County. San Mateo County conducted a sea level rise vulnerability assessment in March 2018. The assessment concluded the following, "The County is highly vulnerable to the effects of rising sea levels. If left unmanaged, future flooding and coastal erosion could pose considerable risks to life, safety, critical infrastructure, the County's natural and recreational assets, and the economy. The assessed value of parcels in the project area exposed to near-term (present-day) flooding exceeds $1 billion, and the assessed value of parcels exposed to erosion and flooding in the long term (50–100 years) totals roughly $39.1 billion. More than 30,000 residential parcels and 3,000 commercial parcels may also be vulnerable in the long term. Furthermore, flooding, erosion, and sea level rise not only directly threaten people and property in the sea level rise hazard areas, but they also affect all communities in the County, even those on high ground. Such indirect effects are present because assets and infrastructure in the sea level rise areas provide critical services and functions to communities outside these areas. The County is already exposed to present-day flooding when large rain events coincide with high tides on the San Francisco Bay, making it imperative to create action steps to reduce risk."

Policy Consideration. This bill specifies that the Flood and Sea Level Rise Resiliency Agency (FSLRRA) can issue revenue bonds. However, this bill exempts the issuance of revenue bonds from the typical 50% voter approval requirement. This is not unique to agencies that provide water and other services.

According to the Author:

"Sea level rise is one of the most serious consequences of climate change, one that is projected to have a significant effect on my district in San Mateo County. San Mateo County has more people and property value at risk from the rising sea levels than any other county in the state. While several local efforts are already well underway in addressing this serious threat, San Mateo County is in need of a cohesive and coordinated approach to address flooding, sea level rise, and coastal erosion across the county. AB 825 will establish the San Mateo County Flood and Sea Level Rise Resiliency Agency, an entity that will specifically focus on mitigating the threats associated with rising seas and coastal erosion. This will better equip the county to be able to create solutions and execute operations to handle these issues and ensure the safety of communities throughout the County."

Arguments in Support:

According to the supporters, "Rather than create a new agency, we determined that the existing flood control district could be modified to create the FSLRRA. The FSLRRA would address sea level rise, flooding, coast erosion, and large-scale storm water infrastructure improvements through integrated regional planning, design, permitting, project implementation, and long-term operations and maintenance with the goal of creating a resilient 'one shoreline' San Mateo County by 2100. The FSLRRA would work with stakeholders to plan, implement, and maintain multi-jurisdictional projects that would provide flood and sea level rise protection, as well as other public benefits, such as water quality improvements, habitat restoration, and recreation. Formation of the FSLRRA is of critical importance to our 21 member agencies. It is essential that the risk posed by climate change and sea level rise be addressed to protect our economic and community infrastructure. We must implement integrated, multi-benefit solutions to our flooding and water quality needs."

Arguments in Opposition:

None on file.

FISCAL COMMENTS:

According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.

VOTES:

ASM LOCAL GOVERNMENT: 8-0-0

YES: Aguiar-Curry, Lackey, Bloom, Boerner Horvath, Ramos, Luz Rivas, Robert Rivas, Voepel

ASM APPROPRIATIONS: 16-0-2

YES: Gonzalez, Bigelow, Bloom, Bonta, Calderon, Carrillo, Chau, Diep, Eggman, Fong, Gabriel, Maienschein, Obernolte, Petrie-Norris, Quirk, Robert Rivas

ABS, ABST OR NV: Brough, Eduardo Garcia

ASSEMBLY FLOOR: 77-0-3

YES: Aguiar-Curry, Arambula, Bauer-Kahan, Berman, Bigelow, Bloom, Boerner Horvath, Bonta, Brough, Burke, Calderon, Carrillo, Cervantes, Chau, Chen, Chiu, Choi, Chu, Cooper, Cunningham, Dahle, Daly, Diep, Eggman, Flora, Fong, Frazier, Friedman, Gabriel, Gallagher, Cristina Garcia, Gipson, Gloria, Gonzalez, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Muratsuchi, Nazarian, O'Donnell, Obernolte, Patterson, Petrie-Norris, Quirk, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Salas, Santiago, Smith, Mark Stone, Ting, Voepel, Waldron, Weber, Wicks, Wood, Rendon

ABS, ABST OR NV: Cooley, Eduardo Garcia, Mullin

SENATE FLOOR: 32-5-3

YES: Allen, Archuleta, Atkins, Beall, Bradford, Caballero, Chang, Dodd, Durazo, Galgiani, Glazer, Lena Gonzalez, Grove, Hertzberg, Hill, Hueso, Hurtado, Jackson, McGuire, Mitchell, Monning, Moorlach, Pan, Portantino, Roth, Rubio, Skinner, Stern, Umberg, Wieckowski, Wiener, Wilk

NO: Bates, Jones, Morrell, Nielsen, Stone

ABS, ABST OR NV: Borgeas, Dahle, Leyva

UPDATED:

VERSION: August 20, 2019

CONSULTANT: Jimmy MacDonald / L. GOV. / (916) 319-3958 FN: 0001500

 THIRD READING  

Bill No: AB 825

Author: Mullin (D), et al.

Amended: 8/20/19 in Senate

Vote: 21

SENATE GOVERNANCE & FIN. COMMITTEE: 6-0, 6/19/19

AYES: McGuire, Moorlach, Beall, Hurtado, Nielsen, Wiener

NO VOTE RECORDED: Hertzberg

SENATE NATURAL RES. & WATER COMMITTEE: 7-1, 7/9/19

AYES: Stern, Allen, Caballero, Hertzberg, Hueso, Jackson, Monning

NOES: Jones

NO VOTE RECORDED: Borgeas

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 77-0, 5/22/19 (Consent) - See last page for vote

SUBJECT: San Mateo County Flood and Sea Level Rise Resiliency District

SOURCE: Author

DIGEST:

This bill makes numerous changes to the San Mateo County Flood Control District Act to allow the District to finance projects to address sea level rise.

Senate Floor Amendments of 8/20/19 clarify that the State Lands Commission’s approval of the District’s right-of-way for flood control projects is discretionary.

ANALYSIS:

Existing law:

1. Enacts the San Mateo County Flood Control District Act (Act), which creates the San Mateo County Flood Control District (FCD) to finance flood control projects within the County. As a dependent special district, the County Board of Supervisors serves as the governing body of the FCD.
2. Provides the FCD with various powers, including the ability to:
   1. Acquire property and construct, maintain, or operate works and improvements on that property.
   2. Hold, use, sell, or otherwise dispose of its property.
   3. Incur indebtedness pursuant to vote requirements in the California Constitution and state law.
   4. Store water in surface or underground reservoirs for specified benefits to the district.
   5. Control flood and storm waters.
   6. Exercise the right of eminent domain.
   7. Make surveys and acquire land and water rights.
   8. Levy taxes and assessments.
   9. Conduct investigations, collect data, and make inspections.
   10. Plan, maintain, and operate a system of parks and recreational facilities.
   11. Create, change, or dissolve zones or subzones and levy taxes, assessments, or charges for improvements specific to a particular zone.
   12. Appoint advisory committees within the district, its zones, or subzones.
   13. Grants the District the right-of-way for the location, construction, and maintenance of flood control works. When the District selects a right-of-way for those works, its board must submit its selection to the State Lands Commission (SLC), the Controller, and the county recorder. If SLC approves the selection, then it issues the District a permit to use the right-of-way and plat of lands

This bill:

1. Changes the name of the FCD to the San Mateo County Flood and Sea Level Rise Resiliency District (FSLRRA) and authorizes the District to address and protect against the impacts of sea level rise.
2. Sets up a new seven-member governing board of directors consisting of the following:
   1. One city council member, appointed at large from any part of the County by the City/County Association of Government of San Mateo County (Association).
   2. One city council member, appointed from the Northern area of the County by the Association.
   3. One city council member appointed from the Central area of the County by the Association.
   4. One city council member appointed from the Southern area of the County by the Association.
   5. One city council member appointed from the Coastal area of the County by the Association.
   6. One member of the San Mateo County Board of Supervisors appointed by the Board from the Coastal area of the County of San Mateo.
   7. One member of the San Mateo County Board of Supervisors appointed by the Board at large from any part of the County.
3. Specifies that members serve four-year terms, except for the following members who each serve an initial term of two years:
   1. The city council member appointed at large.
   2. The city council members appointed from the Central and Coastal areas of the County.
   3. The member of the Board of Supervisors appointed at large.
4. Establishes the roles, duties, and powers of these new board members and provides that, after January 1, 2020, if the Board of Supervisors and Association both approve ordinances, the Board of Supervisors can go back to governing the District.
5. Allows the District to pursue projects that address and protect the County against the impacts of sea level rise, including tidal flooding, coastal erosion, and the combined impacts for tidal and riverine flooding.
6. Allows FSLRRA to issue bonds to finance sea-level rise resiliency projects. This bill allows the District to issue revenue bonds in accordance with the Revenue Bond Law of 1941, as specified. Unlike other local agencies, AB 825 allows the authority to issue these bonds without an election and allows the District to levy taxes and use the proceeds from that tax for district projects.
7. Clarifies that FSLRRA can charge property-related fees as defined by Proposition 218 (1996) pursuant to either (a) a majority-vote of the affected property owners, (b) two-thirds registered voter approval, or (c) weighted ballot approval by the affected property owners.
8. Provides that the FCD can impose charges in active flood control zones within the District with a two-thirds vote of its board. The Board can also accept a payment from a city in lieu of imposing the tax.
9. Clarifies that SLC can approve, propose amendments to, or reject the selection and plat of lands if the District exercises its right-of-way.
10. Makes specified changes intended to modernize the language of this bill originally drafted in 1959.
11. Makes numerous technical and clarifying changes to the Act.

Background

In March 2018, the County conducted a sea level rise vulnerability assessment, which concluded that the County was among the most vulnerable to the effects sea-level rise, if unmanaged, could result in risk to life, safety, infrastructure, natural and recreational assets, and the economy. It highlighted to various critical infrastructure projects that could be at risk, including public safety facilities and regional transportation infrastructure including CalTrain, Bay Area Rapid Transit, state highways, and interstates.

Comments

1. Purpose of this bill. According to the author, “Sea level rise is one of the most serious consequences of climate change, one that is projected to have a significant effect on my district in San Mateo County. San Mateo County has more people and property value at risk from the rising sea levels than any other county in the state. While several local efforts are already well underway in addressing this serious threat, San Mateo County is in need of a cohesive and coordinated approach to address flooding, sea level rise, and coastal erosion across the county. AB 825 will establish the San Mateo County Flood and Sea Level Rise Resiliency Agency, an entity that will specifically focus on mitigating the threats associated with rising seas and coastal erosion. This will better equip the county to be able to create solutions and execute operations to handle these issues and ensure the safety of communities throughout the County.”
2. Voter approval. AB 825 exempts FSLRRA from the typical 50% voter approval requirement to issue revenue bonds. The Revenue Bond Law of 1941 was intended for enterprise projects that, once completed, generate revenue to pay off the bonds. Before issuing debt, the law required voters to weigh in. AB 825 could allow FSLRRA to finance an enterprise project without giving voters the opportunity to weigh in on whether to issue the bonds. However, the District says it is considering other options, such as using an additional tax revenue to pay off the bonds. Typically, a local agency cannot use tax revenue to pay the debt service on revenue bonds. AB 825 allows the District to do so pursuant to its debt limit. Since any tax proposed by a special district is a special tax, if the District used a tax to finance these bonds, it would require two-thirds vote to raise the revenue used to finance the bonds. Previously, the District has issued bonds using its share of property tax revenue to pay debt service. It has not previously used the Revenue Bond Act of 1941 to issue these bonds.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes

SUPPORT: (Verified 8/13/19)

Bay Planning Coalition

California Apartment Association

City of Half Moon Bay

City of Pacifica

City of South San Francisco

County of San Mateo

Midpeninsula Regional Open Space District

San Mateo County-City/County Association of Governments

San Mateo Economic Development Association

Save the Bay

Surfrider Foundation San Mateo County Chapter

OPPOSITION: (Verified 8/13/19)

None received

ASSEMBLY FLOOR: 77-0, 5/22/19

AYES: Aguiar-Curry, Arambula, Bauer-Kahan, Berman, Bigelow, Bloom, Boerner Horvath, Bonta, Brough, Burke, Calderon, Carrillo, Cervantes, Chau, Chen, Chiu, Choi, Chu, Cooper, Cunningham, Dahle, Daly, Diep, Eggman, Flora, Fong, Frazier, Friedman, Gabriel, Gallagher, Cristina Garcia, Gipson, Gloria, Gonzalez, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Petrie-Norris, Quirk, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Salas, Santiago, Smith, Mark Stone, Ting, Voepel, Waldron, Weber, Wicks, Wood, Rendon

NO VOTE RECORDED: Cooley, Eduardo Garcia, Mullin

Prepared by: Jonathan Peterson / GOV. & F. / (916) 651-4119

8/21/19 10:07:05

**** END ****

 THIRD READING  

Bill No: AB 825

Author: Mullin (D), et al.

Amended: 6/4/19 in Senate

Vote: 21

SENATE GOVERNANCE & FIN. COMMITTEE: 6-0, 6/19/19

AYES: McGuire, Moorlach, Beall, Hurtado, Nielsen, Wiener

NO VOTE RECORDED: Hertzberg

SENATE NATURAL RES. & WATER COMMITTEE: 7-1, 7/9/19

AYES: Stern, Allen, Caballero, Hertzberg, Hueso, Jackson, Monning

NOES: Jones

NO VOTE RECORDED: Borgeas

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 77-0, 5/22/19 (Consent) - See last page for vote

SUBJECT: San Mateo County Flood and Sea Level Rise Resiliency District

SOURCE: Author

DIGEST:

This bill makes numerous changes to the San Mateo County Flood Control District Act to allow the District to finance projects to address sea level rise.

ANALYSIS:

Existing law:

1. Enacts the San Mateo County Flood Control District Act (Act), which creates the San Mateo County Flood Control District (FCD) to finance flood control projects within the County. As a dependent special district, the County Board of Supervisors serves as the governing body of the FCD.
2. Provides the FCD with various powers, including the ability to:
   1. Acquire property and construct, maintain, or operate works and improvements on that property.
   2. Hold, use, sell, or otherwise dispose of its property.
   3. Incur indebtedness pursuant to vote requirements in the California Constitution and state law.
   4. Store water in surface or underground reservoirs for specified benefits to the district.
   5. Control flood and storm waters.
   6. Exercise the right of eminent domain.
   7. Make surveys and acquire land and water rights.
   8. Levy taxes and assessments.
   9. Conduct investigations, collect data, and make inspections.
   10. Plan, maintain, and operate a system of parks and recreational facilities.
   11. Create, change, or dissolve zones or subzones and levy taxes, assessments, or charges for improvements specific to a particular zone.
   12. Appoint advisory committees within the district, its zones, or subzones.

This bill:

1. Changes the name of the FCD to the San Mateo County Flood and Sea Level Rise Resiliency District (FSLRRA) and authorizes the District to address and protect against the impacts of sea level rise.
2. Sets up a new seven-member governing board of directors consisting of the following:
   1. One city council member, appointed at large from any part of the County by the City/County Association of Government of San Mateo County (Association).
   2. One city council member, appointed from the Northern area of the County by the Association.
   3. One city council member appointed from the Central area of the County by the Association.
   4. One city council member appointed from the Southern area of the County by the Association.
   5. One city council member appointed from the Coastal area of the County by the Association.
   6. One member of the San Mateo County Board of Supervisors appointed by the Board from the Coastal area of the County of San Mateo.
   7. One member of the San Mateo County Board of Supervisors appointed by the Board at large from any part of the County.
3. Specifies that members serve four-year terms, except for the following members who each serve an initial term of two years:
   1. The city council member appointed at large.
   2. The city council members appointed from the Central and Coastal areas of the County.
   3. The member of the Board of Supervisors appointed at large.
4. Establishes the roles, duties, and powers of these new board members and provides that, after January 1, 2020, if the Board of Supervisors and Association both approve ordinances, the Board of Supervisors can go back to governing the District.
5. Allows the District to pursue projects that address and protect the County against the impacts of sea level rise, including tidal flooding, coastal erosion, and the combined impacts for tidal and riverine flooding.
6. Allows FSLRRA to issue bonds to finance sea-level rise resiliency projects. This bill allows the District to issue revenue bonds in accordance with the Revenue Bond Law of 1941, as specified. Unlike other local agencies, AB 825 allows the authority to issue these bonds without an election and allows the District to levy taxes and use the proceeds from that tax for district projects.
7. Clarifies that FSLRRA can charge property-related fees as defined by Proposition 218 (1996) pursuant to either (a) a majority-vote of the affected property owners, (b) two-thirds registered voter approval, or (c) weighted ballot approval by the affected property owners.
8. Provides that the FCD can impose charges in active flood control zones within the District with a two-thirds vote of its board. The Board can also accept a payment from a city in lieu of imposing the tax.
9. Makes specified changes intended to modernize the language of this bill originally drafted in 1959.
10. Makes numerous technical and clarifying changes to the Act.

Background

In March 2018, the County conducted a sea level rise vulnerability assessment, which concluded that the County was among the most vulnerable to the effects sea-level rise, if unmanaged, could result in risk to life, safety, infrastructure, natural and recreational assets, and the economy. It highlighted to various critical infrastructure projects that could be at risk, including public safety facilities and regional transportation infrastructure including CalTrain, Bay Area Rapid Transit, state highways, and interstates.

Comments

1. Purpose of this bill. According to the author, “Sea level rise is one of the most serious consequences of climate change, one that is projected to have a significant effect on my district in San Mateo County. San Mateo County has more people and property value at risk from the rising sea levels than any other county in the state. While several local efforts are already well underway in addressing this serious threat, San Mateo County is in need of a cohesive and coordinated approach to address flooding, sea level rise, and coastal erosion across the county. AB 825 will establish the San Mateo County Flood and Sea Level Rise Resiliency Agency, an entity that will specifically focus on mitigating the threats associated with rising seas and coastal erosion. This will better equip the county to be able to create solutions and execute operations to handle these issues and ensure the safety of communities throughout the County.”
2. Voter approval. AB 825 exempts FSLRRA from the typical 50% voter approval requirement to issue revenue bonds. The Revenue Bond Law of 1941 was intended for enterprise projects that, once completed, generate revenue to pay off the bonds. Before issuing debt, the law required voters to weigh in. AB 825 could allow FSLRRA to finance an enterprise project without giving voters the opportunity to weigh in on whether to issue the bonds. However, the District says it is considering other options, such as using an additional tax revenue to pay off the bonds. Typically, a local agency cannot use tax revenue to pay the debt service on revenue bonds. AB 825 allows the District to do so pursuant to its debt limit. Since any tax proposed by a special district is a special tax, if the District used a tax to finance these bonds, it would require two-thirds vote to raise the revenue used to finance the bonds. Previously, the District has issued bonds using its share of property tax revenue to pay debt service. It has not previously used the Revenue Bond Act of 1941 to issue these bonds.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes

SUPPORT: (Verified 8/13/19)

Bay Planning Coalition

California Apartment Association

City of Half Moon Bay

City of Pacifica

City of South San Francisco

County of San Mateo

Midpeninsula Regional Open Space District

San Mateo County-City/County Association of Governments

San Mateo Economic Development Association

Save the Bay

Surfrider Foundation San Mateo County Chapter

OPPOSITION: (Verified 8/13/19)

None received

ASSEMBLY FLOOR: 77-0, 5/22/19

AYES: Aguiar-Curry, Arambula, Bauer-Kahan, Berman, Bigelow, Bloom, Boerner Horvath, Bonta, Brough, Burke, Calderon, Carrillo, Cervantes, Chau, Chen, Chiu, Choi, Chu, Cooper, Cunningham, Dahle, Daly, Diep, Eggman, Flora, Fong, Frazier, Friedman, Gabriel, Gallagher, Cristina Garcia, Gipson, Gloria, Gonzalez, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Petrie-Norris, Quirk, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Salas, Santiago, Smith, Mark Stone, Ting, Voepel, Waldron, Weber, Wicks, Wood, Rendon

NO VOTE RECORDED: Cooley, Eduardo Garcia, Mullin

Prepared by: Jonathan Peterson / GOV. & F. / (916) 651-4119

8/14/19 15:08:25

**** END ****

SENATE COMMITTEE ON NATURAL RESOURCES AND WATER

Senator Henry Stern, Chair

2019 - 2020 Regular

Bill No: AB Hearing Date: July 9, 2019

Subject: San Mateo County Flood and Sea Level Rise Resiliency District

BACKGROUND AND EXISTING LAW

Current law:

1. Establishes the San Mateo County Flood Control District
   1. The objects and purposes of the district are to provide for the control of the flood and storm waters of the district and the flood and storm waters of streams that have their source outside of the district but which streams and the waters thereof flow into the district. Also, as a part of that control, objects and purposes of the district include:
      1. To conserve the waters for beneficial and useful purposes when practical by retarding, spreading, storing, retaining, and causing the waters to percolate into the soil within or without the district, or
      2. To save or conserve in any manner all or any of the waters, and protect from flood or storm waters the watercourses, watersheds, harbors, public highways, life, and property in the district, and
      3. To prevent waste of water or diminution of the water supply in, or exportation of water from the district and to obtain, retain, and reclaim drainage, storm, flood, and other waters for beneficial use in the district, and
      4. To engage in recreation activities incidental to and in connection with those purposes.
   2. Similarly, the powers and duties to the district include:
      1. To control the flood and storm waters of the district and the flood and storm waters of streams that have their source outside of the district, but which streams and the floodwaters thereof, flow into said district,
      2. To conserve the waters for beneficial and useful purposes within the district by retarding, spreading, storing, retaining, and causing to percolate into the soil within or without the district, or
      3. To save and conserve in any manner all or any of the waters and protect from damage from such flood or storm waters and watercourses, watersheds, harbors, public highways, life, and property in the district.
   3. The Board of Supervisors of the County of San Mateo serves as the board of the district.
2. Provides for the City/County Association of Governments of San Mateo County (C/CAG) to organize and operate as a Joint Powers Authority.
   1. Its membership includes each of the 20 cities and the County in San Mateo County.
   2. C/CAG deals with issues that affect the quality of life in general; transportation, air quality, stormwater runoff, hazardous waste, solid waste and recycling, land use near airports, and abandoned vehicle abatement.
   3. The Stormwater Committee provides policy and technical advice and recommendations to the C/CAG Board of Directors and direction to technical subcommittees on all matters relating to stormwater management and compliance with associated regulatory mandates from the State Water Resources Control Board and San Francisco Bay Regional Water Quality Control Board.

PROPOSED LAW

This bill would:

1. Rename the “San Mateo County Flood Control District” the “San Mateo County Flood and Sea Level Rise Resiliency District.”
2. Add to the purposes of the district “address and protect against the impacts of sea level rise, including, but not limited to, tidal flooding, coastal erosion, and combined impacts from tidal and riverine flooding.”
3. Adds to its powers the authority to “address and protect against the impacts of sea level rise, including, but not limited to, tidal flooding, coastal erosion, and combined impacts from tidal and riverine flooding, and to take action as may be necessary to protect life, property, and natural systems within the district from rising sea levels, including, but not limited to, tidal flooding, coastal erosion, and combined impacts from tidal and riverine flooding.”
4. Beginning January 1, 2020, change the governing board of the district to a 7 member board of directors consisting of 5 city council members and 2 members of the board of supervisors, selected by C/CAG and the county board of supervisors as specified.
5. Establish the roles, duties, and powers of these new board members and provide that, after January 1, 2020, if the Board of Supervisors and Association both approve ordinances, the Board of Supervisors can go back to governing the district.

ARGUMENTS IN SUPPORT

According to the author, “Sea level rise is one of the most serious consequences of climate change, one that is projected to have a significant effect on my district in San Mateo County. San Mateo County has more people and property value at risk from the rising sea levels than any other county in the state. While several local efforts are already well underway in addressing this serious threat, San Mateo County is in need of a cohesive and coordinated approach to address flooding, sea level rise, and coastal erosion across the county. AB 825 will establish the San Mateo County Flood and Sea Level Rise Resiliency Agency, an entity that will specifically focus on mitigating the threats associated with rising seas and coastal erosion. This will better equip the county to be able to create solutions and execute operations to handle these issues and ensure the safety of communities throughout the County.”

ARGUMENTS IN OPPOSITION: None received

COMMENTS

Threat Of Sea Level Rise. As noted in a 2014 San Mateo County Grand Jury Report, “San Mateo County is at severe risk for sea level rise (SLR) over the period 2015-2100. The County, and the 20 cities and two relevant local special agencies within the county, do not have a coordinated approach to address existing problems related to flooding and are not prepared for the added challenge of SLR. This investigation documents the countywide risk that SLR poses to people, property, and critical infrastructure. For example, wastewater treatment plants are highly vulnerable to SLR and this vulnerability presents significant problems for all cities, not just those along the coast and bay.”

“Based on this investigation, the Grand Jury recommends that a single organization undertake SLR planning on a countywide basis.” (http://www.sanmateocourt.org/documents/grand_jury/2014/sea_level_rise.pdf, last accessed 6/28/19)

This Proposal Was Developed By C/CAG. According to C/CAG’s “Flood and Sea Level Rise Resiliency Agency Proposal” dated December 21, 2018, “In April of 2018, C/CAG’s Countywide Water Coordination Committee, which consists of eight elected officials from across the County, formed an 18-person Staff Advisory Team (SAT) consisting of city, County, and other agency staff to develop a proposal to form an agency to address SLR, flooding, coastal erosion, and regional stormwater infrastructure on a countywide basis. The SAT completed an intensive six-month engagement and collaboration process (Phase 1), resulting in the creation of this Agency Proposal. The C/CAG Water Coordination Committee has reviewed the Agency Proposal and recommends that it be endorsed by the C/CAG Board of Directors and the San Mateo County Board of Supervisors. After analyzing different governance approaches and agency models, the Water Coordination Committee’s recommendation is to modify the FCD by legislation to expand its scope, restructure its governance, and “rename it the Flood and Sea Level Rise Resiliency Agency (Agency).” (https://resilientsanmateo.org/wp-content/uploads/2019/01/Proposal_122118.pdf, last accessed 6/28/19)

Trend Setting Idea? Flooding now is often fought on two fronts. Traditionally, floods have been caused by water moving down the watershed, eroding riverbanks and levees, and inundating lower lying areas. With climate change and sea levels rising, increasingly we are seeing flooding caused by storm surges, king tides, and other local tidal flooding events. It seems likely the legislature will see additional requests to change local flood agency authorities to address the growing threats of sea level rise such provided by this bill.

Double-referred. This bill was previously heard by the Senate Governance & Finance Committee, which has policy jurisdiction over local government organization. This bill passed out of that committee with a vote of 6-0-1.

SUGGESTED AMENDMENTS: None

SUPPORT

California Apartment Association

City of Half Moon Bay

City of Pacifica

City of South San Francisco

Midpeninsula Open Space District

San Mateo County

San Mateo County Economic Development Association

Save the Bay

Stanford Health Care

Surfrider Foundation, San Mateo County

OPPOSITION

None Received

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SENATE COMMITTEE ON GOVERNANCE AND FINANCE

Senator Mike McGuire, Chair

2019 - 2020 Regular

San Mateo County Flood and Sea Level Rise Resiliency District

Makes numerous changes to the San Mateo County Flood Control District Act to allow the district to finance projects to address sea level rise.

Background

San Mateo Flood Control District. In 1959, the Legislature enacted the San Mateo County Flood Control District Act (Act), which created the San Mateo County Flood Control District (FCD) to finance flood control projects within the County. As a dependent special district, the County Board of Supervisors serves as the governing body of the FCD.

The district’s legislative act provides it with various powers, including the ability to:

• Acquire property and construct, maintain, or operate works and improvements on that property.
• Hold, use, sell, or otherwise dispose of its property.
• Incur indebtedness pursuant to vote requirements in the California Constitution and state law.
• Store water in surface or underground reservoirs for specified benefits to the district.
• Control flood and storm waters.
• Exercise the right of eminent domain.
• Make surveys and acquire land and water rights.
• Levy taxes and assessments.
• Conduct investigations, collect data, and make inspections.
• Plan, maintain, and operate a system of parks and recreational facilities.
• Create, change, or dissolve zones or subzones and levy taxes, assessments, or charges for improvements specific to a particular zone.
• Appoint advisory committees within the district, its zones, or subzones.

There are currently three active flood control zones within the district: the Colma Creek Flood Zone, which was created in 1964 to construct flood control facilities in Colma Creek to alleviate flooding in the City of South San Francisco; the San Bruno Creek Flood Control, which was established in 1967 to finance the construction of channel and culvert improvements in the lower reach of San Bruno Creek; and, the San Francisquito Creek Flood Zone, which was created in 1999 to control flooding along the San Francisquito Creek. With a two-thirds vote of the Board, FCD can impose charges specific to one of these particular zones. The Board can also accept a payment from a city in lieu of imposing the tax.

Sea level rise. In March 2018, the County conducted a sea level rise vulnerability assessment, which concluded that the County was among the most vulnerable to the effects sea-level rise, if unmanaged, could result in risk to life, safety, infrastructure, natural and recreational assets, and the economy. It highlighted to various critical infrastructure projects that could be at risk, including public safety facilities and regional transportation infrastructure including CalTrain, Bay Area Rapid Transit, state highways, and interstates. The report estimated the following impacts:

“The assessed value of parcels in the project area exposed to near-term (present-day) flooding exceeds $1 billion, and the assessed value of parcels exposed to erosion and flooding in the long term (50–100 years) totals roughly $39.1 billion. More than 30,000 residential parcels and 3,000 commercial parcels may also be vulnerable in the long term. Furthermore, flooding, erosion, and sea level rise not only directly threaten people and property in the sea level rise hazard areas, but they also affect all communities in the County, even those on high ground. Such indirect effects are present because assets and infrastructure in the sea level rise areas provide critical services and functions to communities outside these areas. The County is already exposed to present-day flooding when large rain events coincide with high tides on the San Francisco Bay, making it imperative to create action steps to reduce risk.”

The author wants to make changes to the San Mateo FCD to focus on mitigating threats of rising sea level and coastal erosion.

Proposed Law

Assembly Bill 825 changes the name of the FCD to the San Mateo County Flood and Sea Level Rise Resiliency District (FSLRRA) and authorizes the district to address and protect against the impacts of sea level rise. The bill makes various changes to (1) its governing structure, (2) the projects it can finance, (3) its ability to issue bonds, (4) modernize existing language, and (5) clarify the FCD Act.

Governing structure. Instead of the Board of Supervisors, AB 825 sets up a new seven-member governing board of directors consisting of the following:

• One city council member, appointed at large from any part of the county by the City/County Association of Government of San Mateo County (Association).
• One city council member, appointed from the Northern area of the county by the Association.
• One city council member appointed from the Central area of the county by the Association.
• One city council member appointed from the Southern area of the county by the Association.
• One city council member appointed from the Coastal area of the county by the Association.
• One member of the San Mateo County Board of Supervisors appointed by the Board from the Coastal area of the County of San Mateo.
• One member of the San Mateo County Board of Supervisors appointed by the Board at large from any part of the County.

The bill specifies that members serve four-year terms, except for the following members who each serve an initial term of two years:

• The city council member appointed at large.
• The city council members appointed from the Central and Coastal areas of the County.
• The member of the Board of Supervisors appointed at large.

The bill establishes the roles, duties, and powers of these new board members and provides that, after January 1, 2020, if the Board of Supervisors and Association both approve ordinances, the Board of Supervisors can go back to governing the district.

Expanded projects. In addition to the district’s existing ability to finance flood protection projects, AB 825 allows the district to pursue projects that address and protect the county against the impacts of sea level rise, including tidal flooding, coastal erosion, and the combined impacts for tidal and riverine flooding.

Bond authority. AB 825 allows FSLRRA to issue bonds to finance sea-level rise resiliency projects. The bill allows the district to issue revenue bonds in accordance with the Revenue Bond Law of 1941, which allows local agencies to issue bonds secured by a specific revenue source, such as a charge to ratepayers, not including taxes. Unlike other local agencies, AB 825 allows the authority to issue these bonds without an election and allows the district to levy taxes and use the proceeds from that tax for district projects.

Modernizing existing language. The bill makes various changes intended to modernize the language of the bill originally drafted in 1959. For example, it provides that district cannot supersede, alter, or lessen the application of the California Coastal Act of 1976, which passed nearly twenty years after the Legislature established the FCD. The bill also clarifies that FSLRRA can charge property-related fees as defined by Proposition 218 (1996), which defines a property-related fee or charge as any levy other than an ad valorem tax, a special tax, or an assessment imposed by an agency on a parcel or on a person as an incident of property ownership, including a user fee or charge for a property-related service. Proposition 218 requires either (1) a majority-vote of the affected property owners, (2) two-thirds registered voter approval, or (3) weighted ballot approval by the affected property owners.

Other technical and clarifying changes. The bill makes numerous technical and clarifying changes to the FCD Act.

State Revenue Impact

No estimate.

Comments

1. Purpose of the bill. According to the author, “Sea level rise is one of the most serious consequences of climate change, one that is projected to have a significant effect on my district in San Mateo County. San Mateo County has more people and property value at risk from the rising sea levels than any other county in the state. While several local efforts are already well underway in addressing this serious threat, San Mateo County is in need of a cohesive and coordinated approach to address flooding, sea level rise, and coastal erosion across the county. AB 825 will establish the San Mateo County Flood and Sea Level Rise Resiliency Agency, an entity that will specifically focus on mitigating the threats associated with rising seas and coastal erosion. This will better equip the county to be able to create solutions and execute operations to handle these issues and ensure the safety of communities throughout the County.”

2. Voter approval. AB 825 exempts FSLRRA from the typical 50% voter approval requirement to issue revenue bonds. The Revenue Bond Law of 1941 was intended for enterprise projects that, once completed, generate revenue to pay off the bonds. Before issuing debt, the law required voters to weigh in. AB 825 could allow FSLRRA to finance an enterprise project without giving voters the opportunity to weigh in on whether to issue the bonds. However, the District says it is considering other options, such as using an additional tax revenue to pay off the bonds. Typically, a local agency cannot use tax revenue to pay the debt service on revenue bonds. AB 825 would allow the district to do so pursuant to its debt limit. Since any tax proposed by a special district is a special tax, if the district used a tax to finance these bonds, it would require two-thirds vote to raise the revenue used to finance the bonds. Previously, the district has issued bonds using its share of property tax revenue to pay debt service. It has not previously used the Revenue Bond Act of 1941 to issue these bonds. The Committee may wish to consider whether to give the FSLRRA the ability issue revenue bonds without voter approval when not all revenue sources it might use require voter approval.

3. Mandate. The California Constitution requires the state to reimburse local agencies for the costs of new or expanded state mandated local programs. Because AB 825 requires local agencies to perform various activities related to operating this program, Legislative Counsel says that it imposes a new state mandate. The measure states that if the Commission on State Mandates determines that the bill imposes a reimbursable mandate, reimbursement must be made pursuant to existing statutory provisions.

4. Special legislation. Section 16 of Article 4 of the California Constitution prohibits special legislation when a general law can apply. AB 825 contains findings and declarations explaining the need for legislation that applies only to the San Mateo County FCD.

5. Double-referred. The Senate Rules Committee has ordered a double referral of AB 825, first to the Senate Governance & Finance Committee, which has policy jurisdiction over local government organization, and second to the Senate Natural Resources and Water Committee, which has jurisdiction over natural resources issues.

Assembly Actions

Assembly Local Government Committee: 8-0

Assembly Appropriations Committee: 16-0

Assembly Floor: 77-0

Support and Opposition

(6/14/19)

Support: California Apartment Association; City of Pacifica; City of Half Moon Bay; Midpeninsula Regional Open Space District; County of San Mateo; San Mateo County-City/County Association of Governments; San Mateo Economic Development Association; Save the Bay; Surfrider Foundation San Mateo County Chapter.

Opposition: Unknown.

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Date of Hearing: May 16, 2019

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

ABPCA Bill Id:AB 825

Author:(Mullin) – As Amended Ver:April 10, 2019

Urgency: No State Mandated Local Program: Yes Reimbursable: Yes

SUMMARY:

This bill changes the name of the San Mateo Flood Control District (FCD) to the San Mateo County Flood and Sea Level Rise Resiliency District (FSLRRA) and authorizes the FSLRRA to address and protect against the impact of sea level rise, in addition to its authority to provide flood control.

This bill provides that the FSLRRA can issue revenue bonds and utilize bond proceeds to address the impacts of sea level rise. This bill creates a new board structure for the FSLRRA beginning in January 2020.

FISCAL EFFECT:

Minor costs to the FCD to reorganize itself. Although these costs are potentially reimbursable by the state upon a determination by the Commission on State Mandates, it is unlikely FDC would submit a claim.

COMMENTS:

1. Purpose. Rather than create a new agency, this bill seeks to modify an existing agency to better suit the needs of the region. According to the author:

Sea level rise is one of the most serious consequences of climate change, one that is projected to have a significant effect on my district in San Mateo County. San Mateo County has more people and property value at risk from the rising sea levels than any other county in the state. While several local efforts are already well underway in addressing this serious threat, San Mateo County is in need of a cohesive and coordinated approach to address flooding, sea level rise, and coastal erosion across the county. AB 825 will establish the San Mateo County Flood and Sea Level Rise Resiliency Agency, an entity that will specifically focus on mitigating the threats associated with rising seas and coastal erosion. This will better equip the county to be able to create solutions and execute operations to handle these issues and ensure the safety of communities throughout the County.

1. San Mateo Flood Control District. The FCD is a countywide special district created in 1959 by the Legislature to provide a mechanism to finance flood control projects within the county. There are three active flood control zones within the district: The Colma Creek Flood Zone, created in 1964 to construct flood control facilities in Colma Creek to alleviate flooding in the City of South San Francisco; the San Bruno Creek Flood Control Zone, established in 1967 to finance the construction of channel and culvert improvements in the lower reach of San Bruno Creek; and, the San Francisquito Creek Flood Zone, created in 1999 to control flooding along San Francisquito Creek.
2. Sea Level Rise in San Mateo County. San Mateo County conducted a sea level rise vulnerability assessment in March 2018. The assessment concluded:

The County is highly vulnerable to the effects of rising sea levels. If left unmanaged, future flooding and coastal erosion could pose considerable risks to life, safety, critical infrastructure, the County’s natural and recreational assets, and the economy. The assessed value of parcels in the project area exposed to near-term (present-day) flooding exceeds $1 billion, and the assessed value of parcels exposed to erosion and flooding in the long term (50–100 years) totals roughly $39.1 billion. More than 30,000 residential parcels and 3,000 commercial parcels may also be vulnerable in the long term.

Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081

Date of Hearing: April 24, 2019

ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT

Cecilia Aguiar-Curry, Chair

ABPCA Bill Id:AB 825 (

Author:Mullin) – As Amended Ver:April 10, 2019

SUBJECT: San Mateo County Flood and Sea Level Rise Resiliency District.

SUMMARY: Makes numerous changes to the San Mateo County Flood Control District (FCD) Act. Specifically, this bill:

1. Changes the name of the FCD to the San Mateo County Flood and Sea Level Rise Resiliency District (FSLRRA).
2. Authorizes the FSLRRA to have jurisdiction and power to address and protect against the impacts of sea level rise, including, but not limited to, tidal flooding, coastal erosion, and combined impacts from tidal and riverine flooding.
3. Specifies that the FSLRRA can issue revenue bonds in accordance with the Revenue Bond Law of 1941, except that no election shall be required for revenue bonds authorized by the board for capital projects undertaken.
4. Authorizes the FSLRRA to issue bonds for the purpose of addressing and protecting against the impacts of sea level rise.
5. Provides that commencing January 1, 2020, the FSLRRA shall be governed by the board of directors consisting of all of the following:
6. One city council member, appointed at large from any part of the county by the City/County Association of Government of San Mateo County (Association);
7. One city council member, appointed from the Northern area of the county by the Association, as that area is defined by the Association;
8. One city council member appointed from the Central area of the county by the Association, as that area is defined by the Association;
9. One city council member appointed from the Southern area of the county by the Association, as that area is defined by the Association;
10. One city council member appointed from the Coastal area of the county by the Association, as that area is defined by the Association;
11. One member of the San Mateo County Board of Supervisors from the Coastal area of the County of San Mateo, as that area is defined by the Board of Supervisors; and,
12. One member of the San Mateo County Board of Supervisors, appointed at large from any part of the County.
13. Specifies that the term length for each board member is four years, except the initial term shall be two years for the following board members:
14. The city council member appointed at large;
15. The city council members appointed from the Central and Coastal areas of the County; and,
16. The member of the Board of Supervisors appointed at large.
17. Establishes the roles, duties, and powers of the board members and officers of the FSLRRA.
18. Provides that, after January 1, 2020, if resolutions are approved by both the Association and the San Mateo County Board of Supervisors, the Board of Supervisors can act as the governing body of the FSLRRA. Requires that each resolution must be posted on the FSLRRA’s internet website.
19. Provides that nothing in this act supersedes or in any way alters or lessens the effect or application of the California Coastal Act of 1976.
20. Specifies that if the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made.
21. Makes numerous other technical and clarifying changes to the FCD Act.

FISCAL EFFECT: This bill is keyed fiscal and contains a state mandated local program.

COMMENTS:

1. San Mateo Flood Control District. The FCD is a countywide special district that was created in 1959 by the Legislature in order to provide a mechanism to finance flood control projects within the County. There are currently three active flood control zones within the district: The Colma Creek Flood Zone was created in 1964 to construct flood control facilities in Colma Creek to alleviate flooding in the City of South San Francisco; the San Bruno Creek Flood Control Zone was established in 1967 to finance the construction of channel and culvert improvements in the lower reach of San Bruno Creek; and, the San Francisquito Creek Flood Zone was created in 1999 to control flooding along the San Francisquito Creek.
2. Sea Level Rise in San Mateo County. San Mateo County conducted a sea level rise vulnerability assessment in March 2018. The assessment concluded the following, “The County is highly vulnerable to the effects of rising sea levels. If left unmanaged, future flooding and coastal erosion could pose considerable risks to life, safety, critical infrastructure, the County’s natural and recreational assets, and the economy. The assessed value of parcels in the project area exposed to near-term (present-day) flooding exceeds
   $1 billion, and the assessed value of parcels exposed to erosion and flooding in the long term (50–100 years) totals roughly $39.1 billion. More than 30,000 residential parcels and 3,000 commercial parcels may also be vulnerable in the long term. Furthermore, flooding, erosion, and sea level rise not only directly threaten people and property in the sea level rise hazard areas, but they also affect all communities in the County, even those on high ground. Such indirect effects are present because assets and infrastructure in the sea level rise areas provide critical services and functions to communities outside these areas. The County is already exposed to present-day flooding when large rain events coincide with high tides on the San Francisco Bay, making it imperative to create action steps to reduce risk.

“Vulnerable assets are located along both the Pacific Coast and the San Francisco Bay; they include critical infrastructure (police stations, hospitals, wastewater treatment plants, and schools); essential regional transportation networks and infrastructure (Bay Area Rapid Transit [BART], Caltrain, Highway 101, State Route 1); and important regional natural and recreational assets.”

1. Bill Summary. This bill changes the name of the FCD to the FSLRRA and authorizes the FSLRRA to address and protect against the impact of sea level rise in addition to its authority to provide flood control. This bill provides that the FSLRRA can issue revenue bonds and utilize bond proceeds to address the impacts of sea level rise. This bill creates a new board structure for the FSLRRA beginning in January 2020. The author is the sponsor of this bill.
2. Author’s Statement. According to the author, “Sea level rise is one of the most serious consequences of climate change, one that is projected to have a significant effect on my district in San Mateo County. San Mateo County has more people and property value at risk from the rising sea levels than any other county in the state. While several local efforts are already well underway in addressing this serious threat, San Mateo County is in need of a cohesive and coordinated approach to address flooding, sea level rise, and coastal erosion across the county. AB 825 will establish the San Mateo County Flood and Sea Level Rise Resiliency Agency, an entity that will specifically focus on mitigating the threats associated with rising seas and coastal erosion. This will better equip the county to be able to create solutions and execute operations to handle these issues and ensure the safety of communities throughout the County.”
   
3. Policy Consideration. This bill specifies that the FSLRRA can issue revenue bonds. However, this bill exempts the issuance of revenue bonds from the typical 50% voter approval requirement. This is not unique to agencies that provide water and other services. The Committee may wish to consider if this exemption is appropriate for the FSLRRA.
   
4. Arguments in Support. According to the supporters, “Rather than create a new agency, we determined that the existing flood control district could be modified to create the FSLRRA. The FSLRRA would address sea level rise, flooding, coast erosion, and large-scale storm water infrastructure improvements through integrated regional planning, design, permitting, project implementation, and long-term operations and maintenance with the goal of creating a resilient ‘one shoreline’ San Mateo County by 2100. The FSLRRA would work with stakeholders to plan, implement, and maintain multi-jurisdictional projects that would provide flood and sea level rise protection, as well as other public benefits, such as water quality improvements, habitat restoration, and recreation. Formation of the FSLRRA is
   of critical importance to our 21 member agencies. It is essential that the risk posed by climate change and sea level rise be addressed to protect our economic and community infrastructure. We must implement integrated, multi-benefit solutions to our flooding and water quality needs.”
   
5. Arguments in Opposition. None on file.

REGISTERED SUPPORT / OPPOSITION:

Support

California Apartment Association

City/County Association of Governments of San Mateo County

City of Pacifica

City of South San Francisco

Midpeninsula Regional Open Space District

San Mateo County

Save the Bay

Surfrider Foundation, San Mateo County

Opposition

None on file

Analysis Prepared by: Jimmy MacDonald / L. GOV. / (916) 319-3958