Flood Disaster Study Committee (12/20/2013)

Final
STAFF SUMMARY OF MEETING

FLOOD DISASTER STUDY COMMITTEE

Date:	12/20/2013	ATTENDANCE

Time:	08:08 AM to 01:36 PM	DelGrosso	*
		Foote	X
Place:	SCR 354	Humphrey	X
		Jones	X
This Meeting was called to order by		Kefalas	X
	Representative Young	Lambert	X
		Lundberg	X
This Report was prepared by		Nicholson	*
	Julia Jackson	Singer	X
		Sonnenberg	X
		Renfroe	X
		Young	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
Status of water diversion infrastructure National Flood Insurance Program Recovery and mitigation planning Discussion of legislative issues Unmet needs and recovery committees Public testimony		Witness Testimony and/or Committee Discussion Only Witness Testimony and/or Committee Discussion Only Witness Testimony and/or Committee Discussion Only Approved two draft bills as committee bills Witness Testimony and/or Committee Discussion Only Witness Testimony and/or Committee Discussion Only

08:09 AM -- Status of water diversion infrastructure

Representative Young gave introductory remarks. He explained that legislative leadership gave the committee additional bill drafting authority. Committee members received a letter explaining this authority (Attachment A). Senator Lundberg noted a problem with damage assessment in the Big Thompson Canyon area in Larimer County. Committee members discussed this issue.

1220Attachment A.pdf

08:17 AM

Dick Wolfe, State Engineer, and Scott Cuthberson, Deputy State Engineer, with the Department of Natural Resources, Division of Water Resources, introduced themselves to the committee. Mr. Wolfe provided an update on flood damage to dams, stream gages, ditches, and diversion structures. Committee members received a table and map prepared by the Division of Water Resources detailing this damage (Attachment B). Mr. Cuthberson explained the data provided in these documents. Representative Sonnenberg and Mr. Cuthberson discussed the timeline for full recovery, noting that the division's goal is April 1, 2014. Senator Renfroe and Mr. Cuthbertson discussed the issue

of stream relocation, particularly the role of private property owners in reconnecting ditches and diversions to streams. Mr. Cuthbertson emphasized the potential for conflict in the repair process and the need to build coalitions to facilitate the process. Committee discussion continued on this point.

1220Attachment B.pdf

08:32 AM

Senator Jones and Mr. Cuthbertson discussed the timeline for dam repairs, noting that November to March is the typical time when reservoirs store their water. Sean Cronin, St. Vrain and Left Hand Water Conservancy District, discussed the importance of building coalitions to repair water infrastructure. He noted that there are still unanswered questions regarding available funds for making repairs, particularly on private property. Senator Kefalas and Mr. Cuthbertson addressed rehabilitation and reorientation of streams. Discussion continued regarding the limited availability of financial support for private landowners to address these issues. Mr. Cronin noted that there may be some funds available from the federal Natural Resources Conservation Service, but that these funds have limiting criteria.

08:43 AM

Representative Sonnenberg and Mr. Cronin continued to discuss the problems of creeks and rivers on private property, noting that federal emergency funds are more readily available for public infrastructure. Mr. Wolfe responded to questions about adding clarifying language to statute to facilitate the relocation of ditch headgates after the flood.

08:48 AM

Tom Morris, Office of Legislative Legal Services, addressed current law concerning the relocation of ditch headgates. He noted that changes could affect instream flow and more senior water rights. Representative Sonnenberg responded to this testimony.

08:56 AM -- National Flood Insurance Program

Erin May, Federal Emergency Management Agency (FEMA) Region 8 Manager for the National Flood Insurance Program (NFIP), and John LaBrune, Branch Chief for Floodplain Management and Insurance, introduced themselves to the committee. Ms. May provided information regarding the importance of flood insurance. Slides accompanied her presentation (Attachment C). Committee members also received a packet of NFIP information (Attachment D) and a FEMA Congressional Advisory concerning the Colorado floods (Attachment E). Ms. May told the committee about the history of the NFIP. Ms. May and Mr. LaBrune discussed the high risks in flood insurance and the lack of profitability for private insurers in providing it.

1220Attachment C.pdf

1220Attachment D.pdf

1220Attachment E.pdf

09:04 AM

Senator Lundberg and Ms. May discussed NFIP's flood risk zones and their impact on flood insurance, including the point at which flood insurance becomes mandatory. Ms. May noted that mortgage lenders determine when flood insurance is required and how much. She continued to discuss NFIP reforms made in 1994 and 2012. She explained the NFIP's definition of flood, noting that it applies to surface water, not ground water.

09:13 AM

Ms. May described available flood insurance policies and the effect of flood risk zones. Senator Renfroe and Ms. May discussed flood insurance costs, which Ms. May noted are based on the specific flood zone, the type of structure, and other rating factors. Senator Kefalas asked about flood insurance on manufactured homes and subsidized flood insurance. Ms. May explained that manufactured homes are covered by flood policies and that some homeowner's insurance policies will cover manufactured homes. Representative Singer and Mr. LeBrune discussed flood insurance payouts in cases of total loss. Representative Singer asked about flood insurance policies for businesses. Ms. May explained that the maximum coverage for businesses is $500,000.

09:26 AM

Ms. May continued to explain provisions of the National Flood Insurance Program. Senator Lundberg and Mr. LaBrune discussed the problem of rebuilding substantially damaged properties. Mr. LaBrune explained that NFIP participating communities are responsible for surveying and making building code decisions, but that FEMA can assist with the surveying process. Senator Lundberg, Mr. LaBrune, and Ms. May continued to discuss the floodplain mapping process.

09:35 AM

Ms. May noted the importance of building and rebuilding homes above the Base Flood Elevation.

09:39 AM -- Recovery and mitigation planning

Mr. Jeff Hohensee, Alliance for Sustainable Colorado, described his organization's work after the flood and told the committee about outstanding needs they have identified. He discussed the interconnected nature of water and power systems, noting the importance of resilient systems.

09:46 AM

Mike Gavin, Fort Collins Emergency Manager, told the committee about lessons learned in Fort Collins, particularly after the 1997 Spring Creek Flood. Slides accompanied his presentation (Attachment F). He detailed the prevention and mitigation efforts made in Fort Collins. He discussed lessons learned related to planning, land use, technology, training, and partnerships with private and nonprofit organizations. Senator Kefalas and Mr. Gavin discussed this information.

1220Attachment F.pdf

10:00 AM

Mike Walker, Executive Director of Serve 6.8, described his organization, which is a new, faith-based organization responding to all kinds of community service needs. Slides accompanied his presentation (Attachment G). Mr. Walker explained their work in responding to disasters, particularly the 2013 flood disaster. He told the committee about lessons they have learned so far. Committee members thanked Mr. Walker and discussed the role of individuals and community groups like Serve 6.8 in disaster response.

1220Attachment G.pdf

10:13 AM

Sean Cronin, Executive Director of the St. Vrain and Left Hand Water Conservancy District, described the water infrastructure damage in his district. Slides accompanied his presentation (Attachment H). Mr. Cronin noted challenges in the repair and recovery process. He explained that some private ditch companies qualify as private nonprofit organizations for FEMA assistance purposes, but others do not. Committee members discussed this issue.

1220Attachment H.pdf

10:22 AM

Mr. Cronin continued to discuss the problem of upstream impacts, which may further damage ditches later on. He explained that some ditch companies will not take assistance because the grant agreement is too long and complicated. He discussed lessons learned so far, including the need to have contact information for ditch companies and photos of diversions prior to damage.

Representative Foote and Mr. Cronin discussed legislative needs. Mr. Cronin noted that funding would be most helpful, particularly incentives to improve water infrastructure design. These incentives could help meet modern needs like fish passage and recreation access.

Senator Kefalas and Mr. Cronin discussed the differences between repairing transportation and water infrastructure. Mr. Cronin suggested that irrigation infrastructure is mostly privately owned and these owners do not have the resources to make repairs.

Representative Young and Mr. Cronin discussed the Big Thompson River's water flows during the flood.

Senator Renfroe and Mr. Cronin discussed information sharing between water organizations like Mr. Cronin's.

Representative Singer and Mr. Cronin discussed public assistance funding available from the state and FEMA.

10:49 AM

Mike Schnatzmeyer, Campaign for the St. Vrain, presented historical maps of the St. Vrain River. He explained that changes to the channel resulted from human intervention. Photographs are included in his slides (Attachment I). He described the economic development opportunities that could be achieved through strategic master planning for the area around the St. Vrain River. Committee members received a white paper detailing the campaign's recommendations (Attachment J). Representative Foote and Mr. Schnatzmeyer discussed local government support for his proposals.

1220Attachment I.pdf

1220Attachment J.pdf

11:05 AM -- Discussion of legislative issues

Representative Young reminded committee members of the leadership letter (Attachment A) and the committee's authority to draft bills. Senator Jones presented his proposed bill concerning the Road and Bridge Fund (Attachment K).

1220Attachment A.pdf

1220Attachment K.pdf


BILL:	Discussion of legislative issues
TIME:	11:09:23 AM
MOVED:	Jones
MOTION:	Support as a committee bill, "County General Fund for Road and Bridge Flood Damage" (Attachment K), to be introduced in the Senate with Senators Jones and Lundberg and Representatives Foote and DelGrosso as co-prime sponsors. The motion passed on a vote of 9-0.
SECONDED:	Lundberg
		VOTE
	DelGrosso	Yes
	Foote	Yes
	Humphrey	Excused
	Jones	Yes
	Kefalas	Excused
	Lambert	Excused
	Lundberg	Yes
	Nicholson	Yes
	Singer	Yes
	Sonnenberg	Yes
	Renfroe	Yes
	Young	Yes

YES: 9 NO: 0 EXC: 3 ABS: 0 FINAL ACTION: PASS

11:11 AM

Representative Sonnenberg distributed his proposed bill concerning the relocation of ditch headgates (Attachment L). Committee members discussed the bill. Representative Sonnenberg explained that he had the bill drafted for the Water Resources Review Committee but chose not to pursue it in the committee while they waited for the Attorney General's opinion. The bill clarifies the legislature's interpretation of the law. Jennifer Berman, Office of Legislative Legal Services, addressed committee questions on the bill concerning emergency designations. The committee continued to discuss when the bill's authorization applies. Ms. Berman noted that the bill applies in emergencies and in other situations.

1220Attachment L.pdf


BILL:	Discussion of legislative issues
TIME:	11:19:05 AM
MOVED:	Sonnenberg
MOTION:	Support as a committee bill, "Relocate Ditch Headgate Without Change Case" (Attachment L), to be introduced in the House with Representatives Sonnenberg and Young and Senators Lundberg and Kefalas as co-prime sponsors. The motion passed on a vote of 10-0.
SECONDED:	Singer
		VOTE
	DelGrosso	Yes
	Foote	Yes
	Humphrey	Excused
	Jones	Yes
	Kefalas	Yes
	Lambert	Excused
	Lundberg	Yes
	Nicholson	Yes
	Singer	Yes
	Sonnenberg	Yes
	Renfroe	Yes
	Young	Yes

YES: 10 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: PASS

11:21 AM

Representative Foote discussed his bill proposals. He explained that a bill has been drafted, with Representatives Foote and Humphrey and Senator Nicholson as co-prime sponsors, concerning the Office of Emergency Management (OEM). The bill would allow the Governor to declare a disaster regardless of whether there is a presidential declaration, and it would streamline advisory boards to OEM. The committee discussed the rationale for speeding the Governor's disaster declarations.

11:25 AM

Jana Locke, Department of Public Safety, came to the table to discuss the proposed bill. She responded to a question from Senator Renfroe concerning disasters that might warrant a state declaration without a federal declaration. Ms. Locke noted that the proposed change is narrowly defined in statute.

11:32 AM

The committee decided to wait to authorize this proposal as a committee bill until members receive a draft bill. Representative Foote described a conceptual bill that he would like to see concerning the authority of the Oil and Gas Conservation Commission and the Director of Natural Resources to shut off wells in an emergency.

11:35 AM

Alan Gilbert, Special Assistant for Flood Response to the Department of Natural Resources, came to the table to discuss Representative Foote's proposal. He explained the genesis of this idea and the benefits of giving the department this additional authority. Committee discussion continued on this proposal.

11:47 AM

Senator Kefalas proposed a bill concerning out-of-state disaster recovery workers. He explained that these workers are expected to pay state income taxes, and he would like a bill to give them a grace period on these taxes. He noted that the statutes in question are Section 39-22-601 and Section 39-22-604, C.R.S. Senator Kefalas suggested that the fiscal impact would be minimal. The committee discussed this proposal.

11:52 AM

Heidi Morgan, Black Hills Corporation, discussed the effect of the proposed bill. She explained that power workers from other states might come to repair power lines in Colorado, but those workers would then be obligated to pay Colorado income tax on the work they have done in Colorado. Under the bill, they would continue to pay income tax in the state in which they are employed. Committee discussion continued.

11:57 AM

Representative Singer explained his four bill proposals. The first would modify the tax remittance structure for local marketing districts. The committee discussed this idea. A second proposal would provide an income tax credit for property owners whose properties were substantially damaged but still subject to previous property tax assessments. A third would create a small business disaster recovery fund. Representative Singer explained that small businesses in places like Lyons were unable to generate revenue while damaged roads blocked access to towns. He suggested that a revolving loan fund could help businesses recover from disasters. The committee discussed these ideas. Representative Singer tabled his fourth idea.

Senator Lambert brought up emergency authorizations to use state resources for helping communities like Lyons. Representative Young suggested that this could be discussed at the next meeting.

12:13 PM

Representative Young presented a conceptual bill related to the Building Excellent Schools Today (BEST) Program. He suggested giving priority to schools damaged by the floods and waiving the school district's required match. BEST money could be used for a federal match as well. Senator Lambert reminded the committee that the JBC will hear a BEST presentation on January 9 at 1:30 p.m.

Senator Lambert and committee members expressed interest in addressing the required 25 percent match for FEMA funding.

12:19 PM -- Unmet needs and recovery committees

Kerri Nelson, Chief of Staff of the Flood Recovery Office (FRO), and Pat Coyle, Director of the Division of Housing, Department of Local Affairs, presented information about recovery funding. Committee members received slides to accompany their presentation (Attachment M). Mr. Coyle explained the process for assessing and receiving Community Development Block Grant - Disaster Recovery (CDBG-DR) funds from the federal Department of Housing and Urban Development (HUD). Ms. Nelson explained the process for determining unmet needs for housing, the economy, and infrastructure. She explained that the FRO must prioritize needs, and that they have a January 1, 2014, deadline for assessing the total damage. The committee asked questions about the eligibility for this funding. Mr. Coyle addressed damage to housing and eligibility for assistance. He expects that the FRO will begin with people who live in manufactured housing communities. He added that new construction will be needed due to low vacancy rates in the affected areas. Senator Renfroe asked about people who were living in manufactured

housing and how they would be helped. Mr. Coyle explained that HUD financial counselors will work with people and that the state can still provide housing assistance. Ms. Nelson discussed economic development losses for businesses, including the tourism industry. Representative Sonnenberg asked about calculating damage to tourism. Committee discussion ensued.

1220Attachment M.pdf

12:43 PM

Stephanie Donner, Executive Director of the Flood Recovery Office, explained tourism information provided by Estes Park. The committee asked for additional information on the calculations. Ms. Nelson addressed economic development issues related to agriculture and public infrastructure damage.

12:55 PM

Ms. Nelson explained the FRO's determination of unmet needs. She noted HUD must approve the state action plan before releasing the first distribution of CDBG-DR funds ($62.8 million). The committee asked questions about funding and the witnesses responded. Representative Young offered to assist the FRO with legislation if necessary. Ms. Donner indicated that the FRO does not need legislation at this time.

01:13 PM -- Public testimony

Don Parcher, Boulder Flood Relief, addressed volunteer mobilization. He asked about facilitating volunteer groups by limiting their liability. Senator Kefalas and Representative Sonnenberg expressed interested in addressing this issue. Jennifer Berman and Nicole Meyers, Office of Legislative Legal Services, described the bill drafts they would prepare on this issue.

Senator Nicholson noted that the committee does not have a set number of bills to move forward, which Ms. Berman confirmed. The committee discussed the bills requested so far.

01:27 PM

Representative Young brought up scheduling the next meeting on January 7, 2014. Committee members discussed this date and issues to be addressed at the meeting. They noted that they may ask Legislative Council for an additional meeting.

01:37 PM

The committee adjourned.