Public Workshop on Flood Corridor Program Draft Funding Guidelines October 2010

1. Public Workshop on Flood Corridor Program Draft Funding Guidelines October 2010

2. FloodSAFE California: A strategic initiative developed by DWR to improve flood protection for the people of California The goals of FloodSAFE California are: • Reduce flood risk to the people of California, their homes and property, the State’s infrastructure, and the public trust resources. • Develop a sustainable flood management system for the future. • Reduce the adverse consequences of floods when they do occur.

3. FloodSAFE California • Improve integrated flood management in the State through a system-wide approach, while carrying out regional projects and enhancing core flood management programs, with the following strategic goals. • Reduce the chance of flooding • Reduce the consequence of flooding • Sustain economic growth • Protect and enhance ecosystem • Promote sustainability

4. Division of Flood Management’s Flood Corridor Program

5. Draft Guidelines Flood Corridor Program Components Flood Corridor Program combines the Flood Protection Corridor Program (Propositions 13 and 84), the Floodway Corridor Program (Proposition 1E) and the Central Valley Non-Structural Grants Program (Proposition 1E)

6. Flood Corridor Program Program Goals • Reduce flood risk using non-structural methods • Acquire agricultural conservation, wildlife habitat preservation, and flood flow easements • Restore floodplain functions • Non-structural elements: setting back levees, installing earthen detention basins, laying back channel banks, removing structures from the floodplain • Use structural components only as needed to facilitate projects

7. Potential Program Benefits Flood Benefits • New setback levees, bypasses and ring levees to safely spread floodwaters over and through floodplains • New or improved detention basins to detain floodwaters for later release • Where appropriate, wider conveyance channels for faster drainage • Reduced peak flows upstream and downstream, allowing, in some cases, sediments to be trapped by the restored riparian vegetation • Acquisition from willing sellers sites that cannot be made safe from flooding • Removal of at-risk structures from floodplains, or relocation to higher ground

8. Other Benefits • Conservation and enhancement of wildlife habitat and agricultural land • Wetland development and enhancement • Ground water recharge • Water quality benefits • Increased recreational and educational opportunities

9. Draft Guidelines Purpose of Funding Guidelines To establish the process and criteria for soliciting applications, evaluating proposals, awarding and managing grant funds disbursed through the Flood Corridor Program (FCP)

10. Draft Guidelines Revised Funding Guidelines Why Revised Guidelines Are Needed • Establish project application, evaluation, selection, and funding rules for the Floodway Corridor Program and the Central Valley Non-structural Grant Program (Proposition 1E Section 5096.825) • Implement policy and procedural recommendations from 2007 FPCP audit by the Bureau of State Audits • Clarify other existing and new policies • Conform grant procedures to new BMS format

11. Draft Guidelines Topics Covered: • General Requirements • New and Clarified policies • Selection Process • Program Definitions • Agreements • Reporting and Recordkeeping

12. General Requirements • Qualifications of Applicants • Local public agency, a nonprofit organization, or organization representing more than one local public agency in eligible area • Native American tribes can apply if they are registered as a non-profit, or partner with another applicant • Must be qualified or authorized to enter into contracts with the State • Must assure that the project will be operated, maintained, repaired, replaced, and rehabilitated until determined otherwise

13. General Requirements • Conditions for Program Funding • Grant funds are available if located at least 50% by area in one or more of the following: • FEMA Special Flood Hazard Area (SFHA) • Floodway designated by The Reclamation Board • Area that would be inundated if the project were completed and an adjacent FEMA Special Flood Hazard Area were inundated • Area below the elevation of the 100-year recurring flood, shown on a locally adopted base flood elevation map (per hydrologic/hydraulic analyses)

14. General Requirements • Conditions for Program Funding continued • Project sponsor must: • Develop a work plan satisfactory to DWR • Demonstrate its compliance with the California Labor Code • Provide a finance plan demonstrating its ability to complete the project

15. General Requirements • Eligible Projects must: • Reduce flood risk • Restore, enhance, and protect wildlife habitat or agricultural land, or both • Use California Conservation Corps or community conservation corps whenever feasible • Examine easement acquisition before fee title

16. General Requirements • Eligible Projects (continued): • All proposed acquisitions of property interests must be from willing sellers • Provide certification that the completed project will be maintained including funding source. A trust fund established with grant funds is possible in some cases

17. General Requirements • Eligible Projects (continued): • Most projects must include a plan to minimize the impact of the project on adjacent property owners

18. General Requirements • Fiscal Considerations • Approximately $78 million available for project grants • Grant cap of $5M per project • Project-related costs incurred by the sponsor after a funding agreement has been executed are reimbursed except…

19. General Requirements • Payments (continued) • Certain costs are not reimbursed until: • Required CEQA and other environmental laws are met • Required permits are obtained • Required public hearing for acquisition of property rights is held and documented

20. General Requirements • Payments (continued) • Requested payment is confirmed to be for work specified in the contract scope of work and budget • Payments are generally paid: • Monthly or quarterly for completed work • Made in arrears upon receipt of invoices • Directly into escrow for property rights acquisitions • Retained funds are paid at milestones

21. General Requirements • No reimbursement or credit prior to execution of grant agreement • Retention of Funds • DWR will retain up to 10% of all approved non-capital payments until defined milestones reached. • Sponsor must provide a Maintenance Plan

22. New and Clarified Policies Guideline Policies Recommended by Bureau of State Audits • Define process for determining if proposed project change would affect project benefits enough to alter competitive ranking relative to other projects • Define percentage of project budget that can be used for structural actions compared with non-structural actions • Define content of quarterly and final reports and specifies required invoice supporting documentation

23. New and Clarified Policies Guideline Policies Recommended by Bureau of State Audits • Clarify direct expenditure projects must undergo same rigorous evaluation as competitive projects • Define when hydrologic/hydraulic study not needed • A policy to withhold 10% of each non-capital disbursement pending achievement of specified milestones

24. New and Clarified Policies Other new and clarified policies • Set new requirement for local cost share at 10 percent of FPCP grant unless disadvantaged community (5 percent) or severely disadvantaged (0) • Include definition of “no-regrets” projects • Detail requirements for scope of work and financial summary in grant application proposal • Require that project site be conserved in perpetuity

25. New and Clarified Policies Other new and clarified policies, continued • Where project site is mortgaged, conservation easement must be recorded in first position ahead of mortgage security • Define how financial benefits of reduced flood risk must be presented in application for funding • Clarification provided as to when funding agreement amendments are required

26. Selection Process • Application requirements are listed in the Guidelines’ Section 4, and include but are not limited to: • Description of the proposed project • Maps and drawings describing the project • Proposed property acquisition rights particulars including • Evidence that affected landowners are willing participants

27. Selection Process • Application requirements (continued): • Work plan, task itemization • Timeline for completion of the proposed project • Description of the input and participation of local groups • Statement relative to the source of funding to pay for maintenance

28. Selection Process • Selection Panel • Project evaluations are done initially by a team with relevant expertise and familiarity with the geographic area • The evaluation team results are reviewed by managers from DWR’s Division of Flood Management • DWR’s Director will determine the final priority order and funding amounts for each project

29. Selection Process Applications will be scored based on three categories: • Flood Protection Benefits • Wildlife Habitat and/or Agricultural Land Conservation • Miscellaneous Benefits and Quality of Proposal

30. Selection Process Flood Protection Benefits: • Removing existing and preventing future urban development in the floodplain • Flood damage reduction benefits • Restoration of natural processes, etc.

31. Selection Process Wildlife and/or Agricultural Land Conservation Benefits: • For Wildlife Benefits: • Habitat values refer to the ecological value and significance of the habitat features of the proposed project • Viability refers to the site’s ability, after restoration if necessary, to remain ecologically viable with minimal on-site management over the long-term, and to be able to recover from any natural catastrophic disturbances (fire, floods, etc.)

32. Selection Process Wildlife and Agricultural Land Conservation(continued): • For Agricultural Land Conservation Benefits: • Potential productivity of the site as farmland • Need and urgency for farmland preservation measures at the project location

33. Selection Process Miscellaneous Benefits and Quality of Proposal: • Number of persons benefitting, and cost in relation to value of benefits • Effects on water supply and water quality • Technical & fiscal capability of project team • Coordination and cooperation with other projects, partner agencies and affected organizations and individuals

34. Selection Process • Project proposals will be solicited by DWR • Eligible local public agencies and non-profits should apply for grants using the Bond Management System (BMS) website • Applications must be received at DWR by the deadline identified in the Proposal Solicitation Package (PSP)

35. Selection Process • Competitive Review Process • The Department shall prioritize projects based on the application score • Projects receiving less than 50% of the available points in any of the three evaluation categories will not be funded

36. Selection Process • Competitive Review Process (continued) • In evaluating project benefits, DWR will consider the criteria in the three evaluation categories of the grant application form, and assign a value to each section up to the maximum specified for that section • To assist in evaluating individual projects, the Department may consult with the applicant, interested stakeholders, local agencies, and State or federal agencies with interest in or jurisdiction over the project

37. Program Definitions Key Definitions: • Applicant – means an entity that is acting as the principal party making an application for funding under the provisions of the Act • Property interest – means any right in real property, including easement, fee title, and any other kind of right acquired by legally binding method

38. Program Definitions Key Definitions (continued): • Nonprofit organization – means an organization that does not operate for profit and has no official governmental status, including but not limited to clubs, societies, neighborhood organizations, advisory councils, conservation organizations and privately run local community conservation corps

39. Program Definitions Key Definitions (continued): • Local public agency – means any political subdivision of the State of California, including but not limited to any county, city, city and county, district, joint powers agency, or council of governments • Sponsor – means an applicant who has received grant funding through the application process described in these regulations

40. Agreements All projects must have a funding agreement containing: • Project description • Scope of work • Detailed budget • Schedule • List of deliverables and due dates • Milestones for release of retained funds

41. Reporting and Recordkeeping • Progress Reports • Sponsor is required to report progress quarterly as a prerequisite to each grant funds disbursement • Payment may be withheld if progress is not satisfactory • Contract specifies payment percentage (~10%) withheld to ensure completion of the project • DWR shall have site access to monitor the effectiveness of maintenance of the completed facilities and the properties

42. Reporting and Recordkeeping • Final Report • Sponsor or local lead agency is required to submit a final report to DWR after project completion • Final Report shall include: • Records of expenditures • Time period covered by report • Key issues that were resolved • Results of project monitoring • Pre-project, in-process (restoration activities and techniques), and post-project description and photographs

43. Reporting and Recordkeeping • All sponsor records and documents pertaining to the grant shall be maintained by the sponsor for three years after the final payment of grant funds • All sponsor records and documents pertinent to the grant shall be available for inspection and audit by the Department or State auditors during normal business hours • The Department or State auditors may audit the records of the project at any time within three years after final payment of grant funds

44. Comments Process • Responses to comments will be posted on the web at: http://www.water.ca.gov/floodmgmt/fpo/sgb/fpcp/

45. In Conclusion Application Process • Application instructions are located on Program website • Applications are to be completed on the BMS website: http://www.water.ca.gov/BMS • There will be a series of workshops in January to address application-related questions • Questions can also be submitted by e-mail to fcp@water.ca.gov

46. Flood Corridor Program Application Schedule For Program Funds • Revised funding guidelines will be sent out in November 2010 • Application solicitation will begin in December 2010 with proposals due in February 2011 • Subject to availability of cash from bond sales, project selections will be announced in May 2011

47. QUESTIONS Contact us fcp@water.ca.gov