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Sutter Butte agency reviews finances, project construction and pivots to FEMA HMGP; moves into closed session on litigation
Summary
The board received a June financial report showing working capital and revenue near budgeted levels, heard construction and design updates on multiple levee and recreation projects, and approved the consent calendar before moving into closed session on potential litigation (Odessa Farms).
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At its meeting the Sutter Butte Flood Control Agency reviewed its year-end financial position and ongoing projects and then recessed into closed session on potential litigation.
Sean (agency finance staff) presented monthly financials through June: estimated working capital "about $25,000,000," estimated total revenue "about $27,500,000," operating fund roughly $750,000 and capital fund about $8.9 million. He said pending receipts total about $12.4 million, including an anticipated partial retention release of about $2.6 million tied to a UFA grant. He also noted upcoming debt service payments and several grant closeouts, and said final fiscal-year numbers will be presented after the audit.
In a program and project update, Mr. Bassett briefed the board on active construction and planning: the Tudor flood risk reduction project is in active construction (1.6-mile levee repair, cutoff wall work and levee regrades) with the contractor scheduled to complete reconstruction prior to flood season. The Sutter Bypass east levee repair is at about 90% design, with plans submitted to the independent peer review panel, the Corps and DWR; staff plan to pursue a FEMA Hazard Mitigation Grant Program (HMGP) application after a state program was terminated. Bassett also reported the Corps performed a levee safety inspection for the City of Oroville in May and the agency expects the inspection report this month.
Bassett said the Central Valley board will be asked next month to sign a PPA amendment approved by the Assistant Secretary of the Army to allow credit transfer between projects. He described reappraisals the Corps must do for 21 properties acquired under the Feather River West levee program, and gave updates on Robinson's Riffle (65% design) and the Thermolito Afterbay boat ramp and campground (near 100% design; bidding planned in October with construction targeted in 2026). He said the agency is coordinating FEMA remapping for Sutter County and working with partners on side-channel projects to avoid adverse impacts on levee integrity.
The agenda included a roll-call and a unanimous voice approval of the consent calendar (motion by Director Banes; second by Director Morris). Before adjourning to closed session, the chair announced Item 5: "significant exposure to litigation, Odessa Farms pursuant to Government Code section 54956.9(d)(2)."

