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Attachment 1 - RAC_JPA_FactSheet-and-FAQ.pdf

Richmond City Council
June 16, 2026

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Attachment 1 - RAC_JPA_FactSheet-and-FAQ.pdf
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June 16, 2026
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Richmond City Council
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Text extracted from the city's file for reading and search. Open the original on pub-richmond.escribemeetings.com. That file is the official record.

Contra Costa County Regional Alternative Compliance (RAC) System Joint Powers Authority FACT SHEET This Fact Sheet was prepared to offer supporting information on the joint powers authority

(JPA)

proposed

to

be

established

to

administer

the

Contra

Costa

County

RAC

System.

Contra Costa County Regional Alternative Compliance (RAC) and its Benefits
The RAC System is a program designed to offer a flexible, cost-effective, and scientifically

defensible

compliance

option

for

the

MRP’s

development

provisions

requiring

post-construction

stormwater

treatment.

This

System

allows

regulated

developments

to

purchase

“compliance

units”

in

green

stormwater

infrastructure

(GSI)

treatment

facilities

or

“Off-Site

GSI

Projects”

constructed

elsewhere

within

the

County.

The

developers

of

the

Off-Site

GSI

Projects

generate

the

“compliance

units”

that

can

be

exchanged

through

the

RAC

System

and

purchased

by

the

regulated

developments

that

cannot

treat

stormwater

on

their

own

sites.

Why is the RAC System important? The RAC System provides an opportunity for strategic

development,

siting,

and

funding

of

larger

regional

stormwater

treatment

facilities

in

areas

with

greater

legacy

pollutant

concerns.

It

can

facilitate

the

funding

and

maintenance

of

Off-Site

GSI

Projects

that

offer

multi-benefits,

such

as

traffic

calming,

pedestrian

safety

enhancements,

and

urban

greening

to

disadvantaged

communities

while

removing

toxic

pollutants

from

the

local

waterways.

How does the RAC System work? Compliance units can be sold to an interested party (i.e.,

a

developer

or

municipality)

in

need

of

off-site

stormwater

treatment

in

order

to

comply

with

the

MRP’s

treatment

requirements

for

their

own

development.

Here

is

how

it

works:

1. A “seller” would design and construct the Off-Site GSI Projects that generate RAC System

compliance

units.

Off-Site

GSI

Projects

require

certification

through

the

RAC

System

before

selling

compliance

units.

As

described

below,

Sellers

can

be

a

variety

of

public

agencies

and

private

entities.

2. A “buyer” would pay for the RAC compliance units to satisfy their project’s stormwater

compliance

needs

by

completing

a

“compliance

purchase.”

3. Buyers would pay an additional annual fee to cover the ongoing operations and maintenance

(O&M)

of

the

Off-Site

GSI

Projects

that

generate

compliance

units.

Frequently Asked Questions Q.1 What are the reasons for considering joining the Regional Alternative Compliance (RAC) System

Joint

Powers

Authority

(JPA)

now,

rather

than

later?
Regional collaboration
through

the

JPA

could

save

costs

and

improve

efficiency

in

meeting

regulatory

requirements.

Joining

the

RAC

JPA

now,

as

it

is

being

formed,

can

provide

several

benefits:

● It is more cost-effective to join the JPA initially as the setup and outreach costs can be

spread

among

original

participants,

especially

if

more

permittees

now

decide

to

join

the

JPA.
● Becoming a member of the JPA allows the agency’s boundaries to be included in the RAC

CFD

for

future

annexation.

● JPA members will benefit immediately from regional collaboration, shared resources, and

access

to

the

RAC

System

for

purchasing

and

selling

compliance

units.

● Becoming a JPA member allows an agency to participate in the RAC System, which can

benefit

future

City

public

projects

or

interested

developers.

● Only JPA members will have access to the RAC System Community Facilities District (CFD),

a

mechanism

for

collecting

annual

fees

for

maintenance

of

Off-Site

Green

Stormwater

Infrastructure

(GSI)

Projects.

Q.2 Is it relatively easy to join the JPA at a later date? What is the process of joining? Are there

any

advantages

or

disadvantages? Joining the JPA at a later date is possible. A new

member

agency

would

be

required

to

approve

and

agree

to

be

bound

by

the

terms

of

the

JPA

agreement,

and

the

JPA's

board

of

directors

would

need

to

approve

the

new

member.

Advantages

of

joining

later

include

flexibility

in

timing.

In

contrast,

disadvantages

may

include

missing

out

on

being

able

to

weigh

in

on

the

JPA’s

formation,

purpose,

and

other

terms

of

the

agreement,

as

well

as

potentially

higher

costs

for

late

entry.

Q.3 Can we opt out of the CFD if my agency joins the RAC System JPA? JPA members are not

obligated

to

participate

in

the

CFD

if

they

don’t

want

their

City

Council

to

approve

it
immediately.

However,

this

would

mean

that

the

member

would

not

be

able

to

use

the

RAC

System

for

developers

within

their

jurisdiction,

as

the

CFD

is

the

mechanism

developers

must

use

for

ongoing

maintenance

payments

for

compliance.

Q.4 What is the process of participating in the CFD at a later date to allow for annexing parcels

within

my

jurisdiction

at

that

time?
The method of annexing parcels within your
jurisdiction

at

a

later

date

involves

submitting

a

formal

request

to

the

JPA

and

following

the

established

procedures

for

annexation.

This

may

include

approval

by

the

JPA's

board

and

execution

of

the

necessary

agreement,

along

with

approval

by

the

JPA

member’s

City

Council.

Q.5 Can you explain the minimum administrative costs for agencies that join the RAC JPA and

form

the

CFD

versus

those

who

join

the

RAC

JPA

but

opt

out

of

the

CFD?
Agencies
that

join

the

RAC

JPA

and

form

the

CFD

may

incur

administrative

costs

due

to

the

additional

responsibilities

of

managing

the

CFD.

These

additional

costs

are

anticipated

to

be

low

and

could

be

covered

by

parcels

in

your

jurisdiction

participating

in

the

RAC

System.

Those

who

opt

out

of

the

CFD

will

only

be

responsible

for

the

JPA’s

administrative

costs

but

may

miss

out

on

the

benefits

of

the

CFD,

such

as

the

ability

to

levy special taxes on developers who would like to use the RAC System for their compliance.

Q.6 My agency is interested in using the RAC System to facilitate ‘internal exchanges’ within my

jurisdiction.

We

anticipate

having

compliance

units

available

to

sell

but

are

interested

in

selling

them

only

to

private

buyers

within

my

jurisdiction.

Can

you

explain

if

such

internal

exchanges

are

possible

and

how

it

works?
Internal exchanges within your
jurisdiction

could

be

possible

through

the

RAC

System.

If

your

jurisdiction

would

like

to

“reserve”

compliance

units,

we

could

incorporate

a

field

into

the

RAC

System

Tracking

Tool

that

would

make

those

compliance

units

unavailable

to

entities

outside

your

jurisdiction.

However,

it

is

encouraged

that

any

compliance

unit

“reservation”

lapse

after

a

certain

period

of

time,

because

the

compliance

units

will

not

generate

maintenance

fees

for

the

Off-Site

GSI

Project

until

they

are

sold.

If

compliance

units

remain

unsold,

the

seller

(i.e.,

your

jurisdiction)

must

pay

maintenance

costs

until

they

are

sold.

Q.7 How are the ongoing costs calculated as part of the ongoing CFD fees to collect? Ongoing costs as part of the CFD fees are calculated based on the maintenance, repair, and

replacement

activities

required

for

the

facilities

funded

by

the

CFD.

These

costs

are

typically

included

in

the

special

taxes

levied

on

properties

within

the

CFD.

Q.8 What steps are involved in forming a JPA and establishing a CFD? The steps involved in forming

a

JPA

and

establishing

a

CFD

include

drafting

and

approving

the

joint

powers

agreement,

obtaining

approval

from

the

governing

boards

of

the

participating

agencies,

and

executing

the

agreement.

The

CFD

process

includes

adopting

resolutions

of

intention,

holding

public

hearings,

and

conducting

elections

to

approve

the

special

taxes.

Q.9 What happens when a parcel changes ownership from one permittee to another? For example,

when

does

a

county

parcel

become

a

city

annexation?
If we establish a future
annexation

area

that

includes

the

entire

county,

if

a

property

moves

from

the

County

to

a

City

as

a

result

of

incorporation

or

annexation,

it

is

still

within

the

boundaries

of

the

future

annexation

area,

so

it

could

annex

into

the

CFD

as

if

it

had

never

moved

out

of

the

County.

Q.10 How would the JPA provide opportunities for participation by agencies outside of the County?
A JPA is an agreement among various public agencies. The members don't have

to

be

limited

to

a

single

county.

The

JPA

structure

gives

them

the

power

to

exercise

powers

that

are

common

to

them,

plus

other

statutory

powers

given

to

them.

So,

it

is

possible

that

a

JPA

that

initially

includes

only

the

County

could

grow

to

include

public

agencies

outside

the

boundaries

of

the

County,

including

State

agencies

such

as

Caltrans.

If

the

JPA

agreement

is

amended

to

include

members

outside

the

County,

the

CFD

could

similarly

be

amended

to

add

the

new

public

agency/ies

jurisdiction

to

the

future

annexation

area.

However,

as

a

reminder,

public

agencies

purchasing

compliance

units

would

pay

for

maintenance

through

a

separate

agreement

outside

of

the

CFD,

which

is

reserved

for

private

parcel

owners

only.

Q.11 If one jurisdiction (e.g., unincorporated Contra Costa County) builds a project that is in a separate

incorporated

city,

but

that

incorporated

city

did

not

join

the

JPA

and

CFD,

could

we

still

use

that

project

as

part

of

the

RAC

System?
The project itself can be located
anywhere

the

RAC

System

allows

facilities

to

be

located

(defined

as

the

entire

County,

providing

that

the

property

owner

has

approved

of

the

project).

However,

the

entities

purchasing compliance units generated by that project can only be located within jurisdictions

participating

in

the

RAC

System.

Q.12 If a jurisdiction doesn’t plan to buy or sell any compliance units (i.e., has decided to be a member

of

the

JPA

just

so

that

they

have

that

option),

will

they

have

an

ongoing

cost

associated

with

being

a

member?
Most likely, yes. The JPA Board would determine that cost

burden

on

an

annual

basis.

The

cost

to

be

a

member

that's

not

participating

in

any

improvements

would

probably

be

limited

to

just

the

administrative

staff

of

maintaining

the

JPA.

Q.13 If my jurisdiction has several developers participating in the RAC System, will my administrative

costs

for

the

JPA

and

CFD

be

progressively

higher

with

each

participating

developer?
The overall costs for the JPA and CFD would be progressively higher for a jurisdiction

that

has

several

developers

participating.

However,

those

additional

administrative

costs

should

ideally

be

passed

on

to

the

developers

so

that

the

additional

cost

burden

by

the

jurisdiction

is

minimal.

Q.14 Can a JPA administer multiple CFDs within different jurisdictions? Yes, a JPA can administer

multiple

CFDs

within

different

jurisdictions,

allowing

for

coordinated

management

and

efficient

use

of

resources

across

various

areas.

Q.15 How can municipalities benefit from regional collaboration through a JPA? Municipalities can

benefit

from

regional

collaboration

through

a

JPA

by

sharing

resources,

expertise,

and

costs.

This

can

lead

to

improved

efficiency,

cost

savings,

and

enhanced

ability

to

meet

regulatory

requirements

and

achieve

common

goals.

Because

each

permittee

is

liable

to

meet

the

Mercury

and

PCBs

TMDL

(C.11.c

and

C.12.c

of

the

MRP),

they

can

be

achieved

through

participation

and

funding

of

regional

projects

funded

and

maintained

by

the

RAC

System.

Permittees

that

are

not

members

of

the

RAC

System

will

have

to

find

alternate

means

to

comply

with

these

two

provisions.

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