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[Water_news] 1. DWR'S CALIFORNIA WATER NEWS - Top Items for 11/13/07

Department of Water Resources

California Water News

A daily compilation for DWR personnel of significant news articles and comment

 

November 13, 2007

 

1.  Top Items

 

Quiet island in dispute; Use of state flood grants to buy land scrutinized - Sacramento Bee

 

Audit alleges bond bungle; State still doesn't own overpriced island, report says - Stockton Record

 

State auditor blasts flood protection spending - Central Valley Business Times

 

 

Quiet island in dispute; Use of state flood grants to buy land scrutinized

Sacramento Bee – 11/12/07

By Judy Lin, staff writer

 

STATEN ISLAND – This time of year, when the sun falls earlier by the day and the corn has been harvested, is the best time to see the sandhill cranes.

 

The sky above a stretch of flooded farmland on this island in the Sacramento-San Joaquin Delta becomes speckled with white and pale gray birds.

 

The creatures – distinguished by long legs and longer necks – come to roost on this wetland each winter. Some have been spotted for at least 18 years.

 

Conservationists tout the 9,200-acre island, located south of Walnut Grove in San Joaquin County, as a successful marriage between wildlife and agriculture. They applaud the state Department of Water Resources for its willingness to invest in wildlife preservation.

 

But a recent state audit has raised questions about the department's decision to hand $17.6 million in flood protection bond money to a non-governmental organization that emphasizes habitat protection over flood control.

 

State Auditor Elaine Howle stressed the need for better monitoring as the department gets ready to dole out $330 million in additional flood protection bonds.

 

"DWR needs to do a better job of managing the flood protection corridor program," Howle said in an interview. "We found several weaknesses in awarding the grant, as well as monitoring how well those programs are proceeding."

 

The audit, which was released Nov. 5, said the department failed to show the merits of five grants in 2001, including the $17.6 million Staten Island grant. The grants, which totaled $28 million in all, were funded through the Flood Protection Corridor Program, created by Proposition 13 in 2000.

 

DWR Director Lester Snow agreed the department needs to do a better job of tracking grants and decisions. The audit was especially critical of the department, then under former director Tom Hannigan, for not using a scoring tool that would have ranked projects based on their merit.

 

Snow said more staff members have since been assigned to the program.

 

The Staten Island grant helped the Nature Conservancy buy the island for $35 million. The California Bay-Delta Authority put up the rest of the money.

 

In return for the department's investment, the state retains easement rights for flood projects.

 

Keeping the land undeveloped gives Staten Island the potential to absorb water in case of a flood, said Dawit Zeleke, regional director for the Nature Conservancy. The water around the island is fed by the Cosumnes and Mokelumne rivers.

 

"When I look at the cranes, I think it's a wise investment," Zeleke said.

 

Some believe the money should never have been spent on buying Staten Island.

 

Assemblyman Bill Maze, R-Visalia, who called for the audit, took notice of Staten Island in 2005 after reading a story in The Bee about the precarious nature of levee funding. At the time, the story found that only six of the 26 miles of levees surrounding Staten Island had been maintained.

 

"It should not have been used for that project whatsoever," Maze said.

 

Since then, the audit found that not much has improved.

 

"Six years after Nature Conservancy acquired Staten Island, Water Resources has yet to implement a flood protection project on the island, and it is unclear whether the acquisition will ultimately result in a tangible flood protection project," the audit states.

 

The audit also questioned the department's contention that the island provides significant flood protection by preventing development in a flood-prone area, given what the audit called "the current legal restrictions prohibiting such development."

 

Snow, however, defends the department's selection of Staten Island.

 

Snow said funding from Proposition 13 allowed the department to acquire easements to protect floodplains while preserving the agricultural use of the property.

 

"The Staten Island project," Snow said, "clearly meets the statutory criteria for the program."

 

In addition to questioning the Staten Island grant, Howle recommended changing the grant selection process to require the department to justify the merits of each project. She also recommended following up to make sure grant recipients spent the money appropriately.

 

Auditors said they had no way to review the selection committee's decisions. Of 11 projects the department considered funding, five were selected without proof of a competitive process.

 

Snow said he intends to adopt a ranking system for future flood protection projects as the department prepares to hand out new bond money.

 

Last November, voters approved two bond measures – propositions 84 and 1E – that provide the department with $330 million for flood protection projects. The money has been designated for the protection, creation and enhancement of flood protection corridors and bypasses.

 

At Staten Island, the Nature Conservancy says the state's investment allows the farm to export nearly 40,000 tons of corn a year and provide a home for up to 15 percent of the region's greater sandhill cranes, which are listed as a threatened species.

 

The cycle is simple. Farmers grow corn and wheat during the year, then flood the land after crops are harvested, creating a haven for cranes and other birds.

 

The cranes that winter on the island are playful. On a dirt road cutting through the farm, Zeleke looks out on the birds as they throw their heads up, fan their wings and occasionally toss grass.

 

"This is the ideal situation," Zeleke said. "You have the economy benefiting ... and also managing the land in a successful way that the cranes keep coming back." #

http://www.sacbee.com/111/story/485403.html

 

 

Audit alleges bond bungle; State still doesn't own overpriced island, report says

Stockton Record – 11/12/07

By Hank Shaw, staff writer

 

SACRAMENTO - The state gave The Nature Conservancy more than $35 million in taxpayer money to buy a Delta island that was appraised at half that amount, according to a state audit released this week.

 

Now the state neither owns the land nor is it open to public access; it's still making money and collecting federal subsidies for the conservancy as a working farm.

 

What's more, $17.6 million of the state's cost came from voter-approved flood control bond money, yet the conservation easement the Department of Water Resources obtained for Staten Island provides little or no flood-control benefits, the audit found.

 

The audit also found that Water Resources failed to set serious criteria for allocating flood-control money, rarely bothered to follow up with entities it gave the money to, and can provide only spotty documentation about how more than $57.1 million was spent.

 

This mismanagement of public bond money becomes all the more serious considering that voters just passed $9.5 billion in water bonds last year, State Auditor Elaine Howle said.

 

Little of that money has yet been spent, and Water Resources chief Lester Snow - who was not with the agency when the abuses the audit discovered took place - says he is busily making sure this does not happen again.

 

Snow's spokeswoman Sue Sims said the agency agrees with much of Howle's assessment: "It's a good opportunity to look at where we need to improve."

 

David Kline of the California Taxpayers' Association says the public should be outraged.

 

"It's a classic case of bait and switch," Kline said. "The voters are always being told that if they approve this bond, they will get this great service. Then, years later, you find out that money was squandered. But then we're still paying the bonds."

 

Howle only examined spending surrounding the flood-control bond voters passed in 2000; the Staten Island deal was swung with both that cash and money from a previous bond. But the question remains: Why didn't the state simply buy Staten Island, instead of giving millions to The Nature Conservancy so that it could buy the island and continue farming on it? After all, the state owns nearby Twitchell and Sherman islands.

 

Sims said that decision was made before Snow arrived at Water Resources.

 

"He's not going to second-guess that decision," Sims said. "There's no real reason to try to go back and get into the minds of those people."

 

Attempts to reach Tom Hannigan, who led Water Resources at the time, were unsuccessful.

 

According to documents surrounding the case as well as interviews with Nature Conservancy officials earlier this year, the conservancy wanted the island because the previous farmer had been a pioneer in wildlife-friendly agriculture - and because Staten Island is a wintering ground for sandhill cranes, which are numerous enough to be hunted in many other parts of the country, but are still threatened in California.

 

Water Resources' argument for the expenditure was that Staten Island could someday be useful in the agency's future flood-control plans.

 

The easement gives the state the ability to use part of the island for flood control until 2011, when the conservancy gets full control of the island.

 

Cases such as these have led Assemblyman Greg Aghazarian, R-Stockton, to sponsor legislation to require the state to record and post publicly all the conservation easements it has granted since that 2000 bond issue. Gov. Arnold Schwarzenegger signed the legislation earlier this autumn.

 

"It's what we've been saying for years," Aghazarian said. "Audit after audit is going to show this. We need to preserve and restore the environment, but these are taxpayer dollars we're talking about."

 

The audit looked at 13 flood-control projects, including one on the San Joaquin River at Vierra Ranch between San Joaquin and Stanislaus counties.

 

Sims says Water Resources is fixing its problems.

 

"There's some fiscal discipline in the programs now that there wasn't then," she said. "We're in a much better position now."

 

Kline of the taxpayers association says he has an idea what they can do on Staten Island: "Perhaps they can use the land to build a monument to government waste." #

http://www.recordnet.com/apps/pbcs.dll/article?AID=/20071112/A_NEWS/711120326

 

 

State auditor blasts flood protection spending

Central Valley Business Times – 11/12/07

 

The California Department of Water Resources awarded $57.1 million for local grants under the flood protection program based on poorly defined selection criteria and incomplete information, state Auditor Elaine Howle says in a report.

 

“Most notably, it is unclear whether the most expensive grant, the acquisition of Staten Island, will result in a tangible flood protection project in return for the $17.6 million in funds awarded,” the report says.

 

Ms. Howle’s report says the appraisal for the Central Valley land may have been too high “and as a result, the state potentially paid more than fair market value for the property.”

 

Despite the state spending $17.6 million for the San Joaquin County island, the auditors say in their report that it “has yet to result in a tangible flood protection project.”

 

In the grant agreement for the project, the Department of Water Resources gave The Nature Conservancy money from the state flood protection program to acquire Staten Island in 2001.

 

“However, during the six-year period following Nature Conservancy’s acquisition of Staten Island, Water Resources has yet to implement a worthwhile flood protection project on the property,” the auditor’s report says.

 

And the report says that while the DWR contends that Staten Island has already achieved significant flood protection benefits from the standpoint of preventing future development in an area prone to flooding, “its contention is questionable considering the current legal restrictions prohibiting such development.”

 

Officials of The Nature Conservancy could not be reached Monday. Their California field office was closed in observance of Veterans Day.

 

Overall, says the report, the Department of Water Resources did not always obtain information from applicants called for in its regulations to evaluate a potential project’s flood protection benefits, such as evidence that property owners are willing to sell their property at fair market value.

 

“Moreover, although Water Resources established a framework for monitoring projects that would have been effective if enforced, it has not done so,” the report says.

 

“Correcting these deficiencies in the flood protection program is important because Water Resources will select and monitor similar projects to be funded with an additional $330 million that California’s voters approved in November 2006,” the report says.  #

http://www.centralvalleybusinesstimes.com/stories/001/?ID=6968

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