Bethel Island Municipal Improvement District Parcel Tax Measure Questions and Answers 08-02-10 Question #1: If the measure passes, what exactly will it fund? Answer: If the measure passes, funding will be used to continue raising the Bethel Island levee to meet current height standards and to complete the current need for riprap placement on the entire 11.5 miles of Bethel Island levee. The measure will also permit the entire 19.1 miles of Bethel Island drainage ditches to be cleaned and regraded and the discharge pumps raised above the flood plain thus improving proper water flow. Question #2: If the measure passes, thus funding levee and drainage maintenance and rehabilitation, is the levee guaranteed not to breach? Answer: It is impossible to guarantee any levee system, but it is possible to take measures to alleviate a majority of the dangers threatening the Bethel Island levee system. The intention of this measure is to fund the muchneeded work on the levee and drainage ditches. Adding rip-rap to the outer face of the levee helps protect it from additional erosion created by wave and high water action. Continuing levee reconstruction gives the levee additional elevation to protect it from over topping during winter storms. Even with these measures, it is impossible to put a guarantee on the Bethel Island levee system because of the underlying peat soil conditions that exist throughout the island; liquefaction during an earthquake event is the most serious remaining threat. Question #3: How much is the total measure and what will it cost for each parcel owner? What is the rationale for the charges to each specific type of property? Answer: BIMID anticipates doing $6,616,200 worth of work over the 10 years, with $2,581,600 reimbursement from the Department of Water resources leaving $4,036,600 to be funded by the parcel tax. There are 1600 parcels on Bethel Island and each parcel will be taxed at $252.29 per year. Each parcel will be taxed exactly the same regardless of type of property (excluding parcels that are entirely underwater). Question #4: What benefit will the residents get if this measure passes? Answer: a. Passing of this measure will provide benefits to the residents and property owners of Bethel Island. Although BIMID would not receive any of the parcel tax until December of the 2011-2012 fiscal year, with the passing of this measure BIMID would begin rip-rap placement during the 2011 construction season, aiming to complete many of the items that are on the current, growing work list. b. The BIMID office would be able to remain open on Fridays providing island residents and homeowners access to BIMID staff for levee keys, project application processing, levee and ditch monitoring and rehabilitation, and answers to individual resident’s questions. c. Further benefits include creating an emergency rip-rap stock pile, finishing the all-weather road along the levee crown, finish raising the levee to PL84-99 standards, yearly vegetation control along the 11.5 miles of Bethel Island levee, and a retrofit to the pump stations to bring them up above the flood plain. Bethel Island Municipal Improvement District Parcel Tax Measure Questions and Answers 08-02-10 Question #5: Why should residents believe if this measure is passed that the levee and drainage will be improved when it hasn’t been done in previous years while funding was still available? Answer: a. Much of the funding available in previous years has been at a minimum. While property tax revenue has increased by 2% a year (according to Proposition 13), the cost of living has increased by more than 2% and expenses and costs have been subject to inflation. BIMID has used the property tax monies to vie for important DWR work agreements. While some reimbursement has been received under those work agreements, the total amount spent on a levee project has never been fully reimbursed. b. BIMID currently has a contract with Contra Costa County for drainage maintenance. The contract provides $15,000 reimbursement yearly while it costs approximately $70,000 to perform the maintenance required to keep a free flowing island drainage system. Question #6: How much of the parcel tax will BIMID actually get? Answer: BIMID will receive all of the parcel tax collected on its behalf minus an approximately 1% administration fee paid to Contra Costa County. Question #7: Can the parcel tax go up? Answer: No. The same parcel tax will be imposed yearly on property tax bills and will expire after ten years. Question #8: What is the cost of a campaign for a ballot measure? Answer: Recent court decisions limit public entities from campaigning for or against a ballot measure. BIMID may only present the facts which are generated by the Funding Research Committee and prepared by staff. Individuals who wish to campaign for or against a ballot measure are governed by county and state rules. Question #9: What is the cost of an election? Answer: BIMID estimates the cost of putting this measure on the ballot will equal the election costs for new directors, which in November 2008 cost BIMID $1,346. Question #10: What will be the basic level of services if this measure doesn’t pass? Answer: BIMID is determined to meet the goals of sustaining the services directly related to the levee and drainage. However, if the funds aren’t available, then unfortunately the level of service must go down. As property taxes continue to decrease, so will BIMID’s ability to provide these basic services. Question #11: How are other District’s raising money? Answer: Parcel taxes and assessment taxes are the primary fund raising options, along with increased fees for service, such as water and sewer rates, which is not available to BIMID. Bethel Island Municipal Improvement District Parcel Tax Measure Questions and Answers 08-02-10 Question #12: Why hasn’t BIMID planned for a cutback knowing that a financial crisis has been looming for 24 months? Answer: While it is true that the financial situation of the State of California and Contra Costa County has been unstable for a considerable time, the reality of the situation and how it would affect BIMID was uncertain. BIMID believes that more benefit is had by immediately using a majority of its funding for annual maintenance and rehabilitation, instead of stockpiling it for an emergency. This is not to say that no money has been set aside for emergencies, only that BIMID believes it is more cost effective to maintain its existing facilities than to replace the facilities in the event of an emergency. If ditches are not cleaned at least every 3 years, they may become wetlands which means that they can never again be cleaned which would jeopardize water collection and elimination from the island. Question #13: Why isn’t the State or FEMA paying? Answer: a. Historically, the State of California – Department of Water Resources (DWR) has assisted with BIMID levee maintenance and levee rehabilitation projects. BIMID must always do the work first using property tax dollars, and then wait for DWR to reimburse BIMID at a rate from 50% to 75%. As everyone is aware, the State of California is also experiencing financial shortcomings and thus is tightening their budget accordingly. Recent studies by DWR have classified Bethel Island as an “urbanized” island, meaning that Bethel Island has a higher population density with many more full time residents and businesses in comparison to other islands in the Delta. DWR believes Bethel Island property owners should pay more for the everyday upkeep of the island that protects them. Although the percentage of DWR reimbursements has decreased, BIMID will continue to solicit DWR work agreements as long as there are programs available that BIMID qualifies for. b. FEMA funding is usually not available until after an emergency, such as a levee breach, occurs. And then, such funding is subject to availability of funds. There are still many portions of New Orleans that have not been rebuilt and are still waiting for FEMA funding to do so; Hurricane Katrina happened nearly five years ago. Question #14: If BIMID is not getting money from the State, why haven’t administration costs been cut and the available funds used on levee maintenance and repair? Answer: Administration costs have been cut. This year, all employee costs (wages and benefits) were reduced by cutting staff hours. Attorney costs over the last three years have been cut from $235,766 down to $65,000 per year, representing a 72% decrease. FYE 6/30/10 total budgeted expenses have been cut by 74% as compared to FYE 6/30/09, down from $2,176,250 budgeted in FYE 6/30/09 to $576,400 budgeted in FYE 6/30/10. Expenses have been cut strategically to continue to ensure a basic minimum level of services is achieved. The FYE 6/30/11 adopted budget shows a slight increase in expenses based on the anticipated beginning of the Horseshoe Bend Project. The budget also reflects the anticipated reimbursement from this same project. Bethel Island Municipal Improvement District Parcel Tax Measure Questions and Answers 08-02-10 Question #15: Can the levee maintenance be done cheaper if the work is contracted out? Answer: No, BIMID does not believe that the levee and/or drainage maintenance can be done cheaper by contracting the work out. BIMID employees have, collectively, over 35 years of experience working with the unique Bethel Island levee. This familiarity makes it much easier to identify, and repair, minor, or major, maintenance issues with the levee. Outside contractors may not be available in an emergency. Question #16: Has BIMID considered using volunteers to do some of the needed work? Answer: BIMID uses volunteers for miscellaneous work around the BIMID yard and in the Bethel Island Park. However, volunteers cannot be used for levee work as they are not covered under BIMID’s liability and worker’s compensation insurance. Question #17: Can BIMID contract with Dutra ahead of time so in case of a levee breach, rock and barges could be brought in immediately to fill the break and stop the island from flooding completely Answer: Dutra currently has a Memorandum of Understanding (MOU) with DWR to supply rock in the case of an emergency. The purpose for having a stock-pile of rock on-island is so that BIMID can respond immediately in the event of an emergency in an effort to stop the breach and minimize damage. If the breach is not caught early enough and stopped, then unfortunately, in order to repair the breach, the water pressure must be neutralized before beginning repairs; water must be of equal levels on both sides of the levee. Question #18: Why don’t other cities pay? Answer: Other cities are responsible for repair and maintenance of their own facilities. For example, Reclamation District 799, Sandmound Blvd. and Dutch Slough Road, plus Summer Lakes and Reclamation District 800 in Discovery Bay have levee taxes. BIMID is unable to tax anyone beyond Bethel Island parcels because it is out of BIMID’s sphere of influence. Question #19: Why can’t Southern California pay? Answer: Southern California is not within the BIMID sphere of influence. Although State legislators have toyed with the idea of charging end users more (such as So. Calif. Water users), legislation has not yet been introduced or passed by the State. Question #20: What about Delta Coves? Will they pay their fair share? Answer: Currently the Delta Coves project developers are in bankruptcy proceedings and there is no indication when the project will begin construction, however all 511 parcels in the Delta Coves Project are included in the parcel tax. Bethel Island Municipal Improvement District Parcel Tax Measure Questions and Answers 08-02-10 Question #21: If the levee is so important, why isn’t the “Island Clean Up Money” used to pay for levee maintenance and repair? Answer: The “Island Clean Up Money” is used to provide a service to the island residents for the disposal of their unwanted trash and debris. The cost for this service is provided by the Bethel Island Municipal Advisory Council whose funding comes from Contra Costa County. The “Island Clean Up Money” cannot be used for levee maintenance and repair. The small amount of money spent on island Clean Up deters people from dumping trash and debris into the drainage ditches which are then much more costly to clean. Question #22: Why does the levee need to be raised now, can’t it wait a few years? Answer: The yearly levee maintenance, such as vegetation control and additional rip-rap placement help protect what is currently in place. Raising the levee to the current standards will allow BIMID to get some additional funding from DWR. If the levee is NOT brought into compliance, it will jeopardize future state and federal funding and/or reimbursement in the event of an actual flood event. The longer maintenance is deferred, the more costly it becomes. Question #23: Why is BIMID cleaning drainage ditches? Answer: BIMID has always cleaned drainage ditches, but has not cleaned roadside ditches because of the lack of funding. The roadside ditches, along with the main canal, pump stations, and numerous transference ditches, that transfer water from the perimeter of the island to the main canal, are vital to the integrity of the island levee and the safety of island residents. The removal of levee seepage and stormwater keeps the interior island water from rising to levels equal to that of the sloughs surrounding the island. Question #24: If this measure passes, does it mean that the ditches will be cleaned out in front of your house? Answer: If the ditch in front of your house is within County right-of-way, then it would be scheduled to be cleaned. If the ditch is not in the right-ofway, then the ditch is considered a private ditch and is the responsibility of the property owner. In addition, the culverts under the driveways are the sole responsibility of the individual property owners. Question #25: Will the money provided by this measure, make BIMID less efficient? Answer: BIMID will continue to make full use of every dollar that is received. BIMID will continue to vie for State Projects that are reimbursable. BIMID will continue to get competitive bids as required by State law. BIMID will continue to prepare annual budgets and review expenses on a monthly basis. Bethel Island Municipal Improvement District Parcel Tax Measure Questions and Answers 08-02-10 Question #26: Will raising the levee as proposed in the BILDR plan, lead to more development of the island? Answer: No, the Contra Costa County General Plan states that until the levees are structurally certified, no additional large developments will be allowed. BIMID does not foresee that happening in the near future, as sheet-piling is the most likely method to structurally enhance the levee and the cost of sheet-piling is enormous and the funding is not available. Question #27: The levee hasn’t broke since it has been built, over a hundred years ago? Why does it need so much maintenance and rehabilitation? Answer: It is true that the island hasn’t flooded since the levee was built. Some localized flooding has occurred, but that was from levee overtopping when the levee was at lower heights. Earthen levees subside due to the compaction of the peat base. An earthen levee will always require maintenance, just like a wooden boat. BIMID believes that when dealing with an earthen levee, the past does NOT predict the future. Question #28: Will the money provided by this measure be used to seize or destroy individual homeowner’s property? Answer: No, this money may only be used to continue raising the Bethel Island levee to meet current height standards; complete the current need for riprap placement on the entire 11.5 miles of Bethel Island levee; and clean and re-grade 19.1 miles of Bethel Island drainage ditches to improve proper water flow, as approved by the voters to ensure the safety of all Bethel Island residents. Question #29: Can mobile home owners vote on this tax? Will mobile home owners have to pay the parcel tax? Answer: a. Every registered voter on Bethel Island will be able to vote for or against the tax. b. The mobile home parks that are on Bethel Island generally consist of one or two large parcels. An individual mobile home owner will not have the parcel tax placed on their unsecured property tax bill. The mobile home park owner might wish to pass the tax along to their tenants through a rent increase, however that increase will likely be small. Bethel Island Municipal Improvement District Parcel Tax Measure Questions and Answers 08-02-10 Question #30: Why are you doing a parcel tax instead of an assessment? Answer: Even though an assessment district is easier to create, it is much more costly to fairly determine cost benefit to individual properties. It is necessary to engage attorneys and engineers to verify benefit. BIMID received a quote for $18,000 to assist in forming an assessment district. It could allow a few large property owners the opportunity to decide the fate of the island. An assessment is passed by a vote of the majority of landowners and a parcel tax is passed by a 2/3 vote of registered voters. Although a parcel tax will require a larger vote in order to pass, this measure is specifically designed to assure the safety of the island residents and the residents should be the ones to approve the measure. Proposition 218 restricts an assessment to the extent of the special benefits a property would receive from the work to be covered under the measure (by law assessed valuation or property value cannot be used to make that determination); which in this case means a property with a levee and/or drainage ditch would pay a higher fee than a property without either. BIMID feels a secure levee system and a free flowing drainage system benefits all Bethel Island residents and property owners, and not just a select few who live along the levee and drainage systems.