BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 561
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          ASSEMBLY THIRD READING
          AB 561 (Gorell and Smyth)
          As Amended  April 4, 2011
          Majority vote 

           LOCAL GOVERNMENT    7-0                                         
           
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          |Ayes:|Smyth, Alejo, Bradford,   |     |                          |
          |     |Campos, Davis, Gordon,    |     |                          |
          |     |Norby                     |     |                          |
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           SUMMARY  :  Authorizes the Ventura County Watershed Protection 
          District (District) to borrow money and incur indebtedness to 
          finance the construction and reconstruction of District 
          facilities and specifies that each loan incurred shall be 
          authorized by a resolution adopted by a majority vote of the 
          board of supervisors.

           EXISTING LAW  establishes the District and gives the District 
          various powers including the power to incur indebtedness and to 
          issue bonds. 

           FISCAL EFFECT :  None

           COMMENTS  :  Existing law establishes the Ventura County Watershed 
          Protection District.  The purposes of the District are to 
          provide flood control within the District and to provide 
          protection against flood water that originates outside the 
          District but flows into the District.  The District is also 
          authorized to conserve flood water for beneficial use.  The 
          District may capture flood water for groundwater recharge.  The 
          District may also conserve flood water in any manner that 
          protects life and property.

          Since the Hurricane Katrina disaster, the Federal Emergency 
          Management Agency and the United States Army Corps of Engineers 
          have embarked on a comprehensive evaluation of flood control 
          infrastructure on a national, state-wide, and local level.  
          Through this joint technical assessment and re-evaluation 
          process with our federal partners, the District has identified 
          more than $200 million of flood protection capital projects 
          which need to be designed and built to protect more than $8 








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          billion of property and improvements in Ventura County alone.  
          Flooding in Ventura County adversely affects thousands of 
          residents and disrupts major regional transportation corridors, 
          hindering the vitality and growth of our communities.

          Currently the District, like many other agencies, does not have 
          the revenues in hand to move forward with many of the identified 
          critical infrastructure improvements.  Based on the current 
          language of the District Act, it appears to provide the District 
          Board the discretion to incur debt only after the existence of 
          an emergency is declared.  The District Board needs the ability 
          to leverage current revenues through borrowing to re-construct 
          its flood control facilities to proactively prevent damage; not 
          wait until the damage has occurred which increases the cost of 
          reconstruction and unduly burdens taxpaying constituents.  

          In January of 2009, the National Committee on Levee Safety 
          issued a draft report which recommended establishing the 
          National Levee Rehabilitation, Improvement, and Flood Mitigation 
          Fund to aid in the rehabilitation, improvement or removal of 
          deficient levees.  

          Although the National Committee did not define the mechanism to 
          be used to provide this aid, a portion of this aid could be set 
          up as a revolving loan program.  The District needs the ability 
          to react quickly to apply for state and federal borrowing 
          opportunities which may provide low and no interest loans for 
          levee rehabilitation work, further leveraging existing revenues.

          Support arguments:  Supporters argue that having clear 
          discretion to incur indebtedness to prevent flood damages from 
          occurring is the best way to provide flood protection sooner 
          than later.  

          Opposition arguments:  Opposition could argue that the 
          District's enabling Act already allows for the District to incur 
          indebtedness and that the provisions of this measure are not 
          necessary. 

           
          Analysis Prepared by  :    Katie Kolitsos / L. GOV. / (916) 
          319-3958 










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