Bond Act: Proposition 84
Agency of Appropriation: Department of Water Resources
Bond Statute: 75032
- Front-end
- In-progress
- Follow-up (Audit)
Bond Expenditure Criteria or Process:
Section 75032 of the Public Resources Code provides that funds be made available and continuously appropriated through the Department of Water Resources (DWR) for projects that significantly improve flood management systems other than those which are part of the State Plan of Flood Control for the Central Valley. In order to be eligible for funding from this program, levees must not be a part of the State Plan of Flood Control for the Central Valley and not located within the legal boundary of the Sacramento-San Joaquin Delta. DWR has made $60 million available for performing levee evaluations and urgent levee repairs beginning in fiscal year 2009-10.
The Local Levee Assistance Program (LLAP) is developed to assist Local Public Agencies in obtaining geotechnical information needed for restoring or maintaining levee accreditation by the Federal Emergency Management Agency (FEMA) as a result of FEMA’s new requirements in Procedure 34 and 43 and to implement the Governor’s Executive Order S-01-06 for repair of critically damaged levees. These grants fund geotechnical exploration of existing local levees and evaluation of the collected data with regard to stability, seepage, underseepage and repair of local flood control facilities, limited to critically erosion-damaged levees, levees with unstable slopes, and other unstable facilities. The funds allocated for these grants are expended through competitive grants to Local Public Agencies responsible for flood control at the project location.
LLAP Guidelines and Project Solicitation Package (PSP) were adopted by the Director of DWR on 10/8/2008 specifying, amongst other things, the following:
- The timeline for criteria and process development of the Local Assistance Program
- The timeline for selecting, evaluating and approving LLAP projects
- Outreach activities to notify Local Public Agencies as to when and how LLAP funding availability will be made
- Criteria for funding accountability and work performance
- Identifying the critical need for urgent repairs as defined in the LLAP Guidelines
- Performance History of the Levees
- Protection of Lives and Property
- Potential for Levee Improvement
- Flooding Characteristics
- Local Participation
The criteria used to select successful applicants are spelled out in a combination
of the LLAP Guidelines and the PSP. The State intends to use the Grant Application Review System (GARS) to document the processes of reviewing and awarding the funding agreements to successful applicants.
DWR will report its bond expenditures under the program to the public via the Bond Accountability website that is maintained by the Natural Resources Agency.
Once a project is authorized, the Local Flood Control Agencies are eligible for reimbursement from DWR for LLAP grants funding levee evaluations and approved design work and construction. Only the cost of work accomplished on the contract items and tasks in the estimate in the project agreement will be eligible for reimbursement. No grant funds will be disbursed until a grant agreement is executed. Under the conditions of the Program, the cost of work performed prior to execution of the project agreement may be eligible for credit against the local share of project costs.
DWR logs the claims as they are submitted and indicates the date the local agency submits the claim. The claim date sets the priority for the claim, as they are reviewed and paid under a “first in – first out” method. The claims are then reviewed, and DWR presents its determination of eligible costs in engineering reports. Eligible costs are based on the Guidelines for Providing Funding and Grants to Local Public Agencies under Proposition 84 0f 2006, dated April 2008. Local agencies also request DWR to make eligibility determinations prior to incurring costs.
Project outcome measures in the form of progress reports, recordkeeping requirements, and post-implementation reports are specified in the LLAP Guidelines. Site inspections and record audit requirements are specified in the Special Provisions of the Grant Agreement signed by the applicant.
DWR’s Project Manager will oversee progress and ensure compliance with terms as outlined in the Guidelines. Per terms of the Grant Agreement, funding recipient shall be responsible for work and for persons or entities engaged in work, including, but not limited to, subcontractors, suppliers, and providers of services.
The financial status (expenditures and commitments) will be tracked at the project/grant level in DWR’s financial system, called SAP. DWR will utilize “funded program numbers” and structured “internal order cost objects” to track detailed information down to the individual projects or grants. The use of these elements within SAP will enable DWR to also track multiple funding associated with a single project or grant. However, expenditures of funds not controlled by DWR will be tracked by the managing agency.
Section 12832 of the California Water Code provides for a final audit by the State Controller’s Office (SCO) of the claims received and reviewed by DWR. After DWR determines the eligible costs, ninety percent of the claim is paid to the local agency, and ten percent is withheld pending the final audit by SCO. Once the Controller performs the final audit, any balance due to the local agencies is paid as soon as funds are available. DWR works closely with the Controller’s Office to ensure timely audits of the claims.
DWR will continually evaluate progress by reviewing the milestones reached using performance measures which evaluate the lineal feet of levees evaluated or repaired.
Audit procedures are identified in the project review criteria, the Special Provisions of the Grant Agreement. The Special Provisions of the Grant Agreement, Article A-5, require that the grantee hire a certified public accountant to perform an independent final audit of the records.
The Natural Resources Agency will obtain an independent audit of the bonds through the annual Department of Finance, Office of State Audits and Evaluations (OSAE) audit of bond expenditures.
Projects within this Program: