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.