June 6, 2006

If a levee breaks and floods a Central Valley city next winter, taxpayers across California will face billions of dollars in potential court damages.

The state could be bankrupted by this liability, Assemblywoman Lois Wolk recently noted. Last week, lawmakers had a chance to approve Assembly Bill 3050 by Assemblyman Dave Jones, D-Sacramento. It would have required local governments to share liability with the state for any future development they approve in floodplains.

Instead of approving this prudent measure, lawmakers chose to side with big homebuilders, who mounted a fierce and misleading campaign against Jones' bill.

On May 26, the California Building Industry Association and executives with 24 of the state's largest development firms sent letters to all members of the Assembly. They wrote that AB 3050 would force developers to "pull back on plans to build housing in already flood-protected areas of the San Joaquin and Sacramento Valleys." The result would be that "housing that tens of thousands of families look to us to produce in growing areas of the Central Valley would simply not get built."

What a crock. If AB 3050 were approved, local governments would share liability with the state following a levee break, but they wouldn't assume all liability. Tens of thousands of homes could still be built on higher ground, infill areas and truly "flood-protected areas of the San Joaquin and Sacramento Valleys." The main result would be local governments steering development toward the safest of the safe areas and requiring indemnification from builders for development they attempted in more suspect zones.

The problem, unfortunately, is that many homebuilders have already purchased or optioned cheap land in risky areas such as Plumas Lake in Yuba County, which has flooded twice in 20 years. They are preparing to develop an island in the Delta that has flooded three times in a century, and are building in deep floodplains around Stockton and Sacramento.

Unwilling to sacrifice a dollar of their profits -- the Los Angeles Times recently reported that the CEO of KB Homes made $46 million last year -- builders pulled out the stops in blocking AB 3050. Politicians caved. Gov. Arnold Schwarzenegger and his lobbyists were AWOL on the bill, even though they said they supported it. Assembly Speaker Fabian Núñez also didn't come through, at least on this piece of flood legislation.

Jones didn't have the support to bring AB 3050 up for a second vote, but he says he will bring it back in a different form. He should. Jones has shown true courage in championing a cause that won't earn him any big campaign contributions. Sadly, lawmakers and the state's homebuilders chose to put developer profits before public safety and the public purse.

Building industry officials who signed the May 26 letter:

Layne Marceau, Shea Homes
Ray Becker, DMB Associates
Wes Keusder, E.H.I.
Mick Pattinson, Barratt American
Brendan O'Neill, Beazer Homes
Stephen Doyle, Brookfield Homes
John Ochsner, Centex Homes
Sid Dunmore, Dunmore Homes
Harry Elliott, III, Elliott Homes
Jim Previti, Empire Partners
Pat Costanzo, Jr., Greenbriar Homes
Larry Webb, John Laing Homes
Rob Aragon, JTS Communities
Larry Gotlieb, KB Homes
Dennis Moresco, Midland Pacific
Greg McWilliams, Lennar Communities
Len Frank, Pardee Homes
Kile Morgan, Ponderosa Homes
Matt Koart, Pulte Homes
James Ghlelmetti, Signature Properties
Jim Bayless, Treasure Homes
John Young, Young Homes
Mike McClellan, Warmington Homes
Greg Woodard, Woodard Homes