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ADMINISTRATIVE COMMITTEE |
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1. |
CONSIDER
AUTHORIZATION OF STAFF TO PROCEED WITH FILING AN APPLICATION
FOR A DEPARTMENT OF WATER RESOURCES CONSTRUCTION LOAN TO FUND THE AQUIFER STORAGE
AND RECOVERY PROJECT EXPANSION |
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Meeting Date: |
July 14, 2009 |
Budgeted: |
No, payback of loan would
not occur in FY 2009-2010 Budget |
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From: |
Darby Fuerst, |
Program/ |
N/A |
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General Manager |
Line Item No.: |
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Prepared By: |
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Cost Estimate: |
N/A |
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General Counsel Approval:
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Committee
Recommendation: The Administrative
Committee reviewed this item on July 14, 2009 and recommended __________________. |
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CEQA Compliance: N/A |
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SUMMARY: In May 2009, District staff prepared and
submitted a $1.9 million application to the Challenge Grant Program offered by
the Bureau of Reclamation to fund the Expanded Phase 1 ASR project. If the District is successful in obtaining
grant funds, the grant will cover 50% of the $3.8 million project construction costs. District staff has been investigating funding
mechanisms to cover the portion of the project to be funded by the District and
have identified a low-interest construction loan offered by the Department of
Water Resources (DWR). By submitting an
application, the District can pre-qualify for up to a $5 million loan, which
would also provide a funding option for the entire Expanded Phase 1 ASR project
if the District does not receive grant funding.
RECOMMENDATION: Authorize staff to prepare the initial application to pre-qualify for a construction loan through the DWR and work with DWR staff should the Board select this option as the preferred funding mechanism for the Expanded Phase I ASR Project.
IMPACTS TO STAFF/RESOURCES: Financial impacts related to staff time are minimal as most of the information required for the initial application was compiled for the May 2009 grant application to the Bureau of Reclamation.
BACKGROUND:
A.
History of ASR to date: Since
the ASR testing program began in 1998, over 2,100 acre-feet of Carmel River
System water have been diverted for recharge in the
B.
Expanded Phase 1 ASR Progress Report: The District is
currently working to establish an increase in water rights to support the
expanded facility. The State Water
Resources Control Board (SWRCB) is currently processing the District’s water
rights application. Phase 1 ASR is
permitted through the California Environmental Quality Act, National
Environmental Protection Act, and District staff have obtained permits and
approvals required for annual operation of the project from the State
Department of Fish and Game, SWRCB, Regional Water Quality Control Board,
Monterey County Health Department, City of Seaside, California Department of
Public Health, Environmental Protection Agency, and the US Army. The Expansion of Phase 1 ASR can piggyback on
the previous environmental compliance and engineering work. District staff is working with California American
Water to coordinate the construction of the Expanded Phase 1 ASR facilities
with the installation of the delivery pipeline that will be able to convey the
full diversion volumes.
C.
Loan Details: This program was established in 1988 by a
Water Conservation Bond which authorized the DWR to administer a $20 million program
to provide construction and feasibility study loans to local public agencies
for the development of local water supplies.
A maximum of $5 million is available per construction project. Funding
of the loan is provided through Proposition 84 funds. Terms of the loan are 20-year payback period
at 4.6% interest rate. To date, $15
Million of the program have been lent, leaving $5 million still available. Currently the State funds are frozen, but an
educated guess by DWR staff is the money will become available when funding to
water bonds (Propositions 1E, 40, 50, and 84) are unfrozen by the State
legislature.
EXHIBITS
None
U:\staff\word\committees\Admin\2009\20090714\01\item1.doc