Title
Support a request by Monterey County Water Resources Agency that the Monterey County Board of Supervisors approve and authorize forgiveness of the loan of $950,000 issued to Monterey County Water Resources Agency, financed by the County's General Fund Cannabis Tax Assignment for the Pajaro River Flood Risk Management Project Design Phase.
Report
RECOMMENDATION:
It is recommended that the Budget Committee:
Support a request by Monterey County Water Resources Agency that the Monterey County Board of Supervisors approve and authorize forgiveness of the loan of $950,000 issued to Monterey County Water Resources Agency, financed by the County's General Fund Cannabis Tax Assignment for the Pajaro River Flood Risk Management Project Design Phase.
SUMMARY/DISCUSSION:
The Pajaro River Federal Flood Control Project was built in 1949 by the United States Army Corps of Engineers ("USACE") and is maintained jointly by the Santa Cruz County Flood Control and Water Conservation District - Zone 7 ("Zone 7") and the Monterey County Water Resources Agency ("MCWRA").
USACE and the non-federal sponsors (Zone 7 and MCWRA) entered into a Design Agreement ("DA") in May 2021. The DA estimates a total project cost of $7,100,000, cost shares are projected to be $4,615,000 for the federal government, $1,342,500 for Zone 7 and $1,142,500 for MCWRA over three years. Non-federal cost share contributions made by Zone 7 and MCWRA would be eligible for reimbursements by the California State Department of Water Resources (DWR) thru the Coast Watershed Funding Agreement and a Subventions Agreement.
On November 16, 2021, Monterey County Board of Supervisors authorized a loan up to $950,000 over two years to MCWRA to pay its non-federal cost share of the project with the condition that it will be repaid with reimbursements from DWR. MCWRA borrowed $658,500 in Fiscal Year 2021-22 and submitted a reimbursement request to DWR in July 2022. A request of the second installment in FY 2022-...
Click here for full text