Title
Consider recommending the Monterey County Water Resources Agency Board of Directors to include funding for Interlake Tunnel Project development, in the recommended budget for fiscal-year 2024-2025. (Staff Presenting: Ara Azhderian)
Report
RECOMMENDATION:
It is recommended that the Monterey County Water Resources Agency Board of Directors:
Recommend the Monterey County Water Resources Agency Board of Directors to include funding for Interlake Tunnel Project development, in the recommended budget for fiscal-year 2024-2025.
SUMMARY/DISCUSSION:
Work on the Interlake Tunnel and San Antonio Spillway Modification project (ILT) began in 2014. To date, $11.84M has been spent with $2.58M coming from the County of Monterey and the remaining $9.26M coming from a grant from the California Department of Water Resources. Design work is 60% complete. Currently, the remaining grant funded deliverables are a Draft Engineer's Report, a Draft Environmental Impact Report, and documentation related to easements, environmental permitting, and water rights change petitions. The deliverables will be completed prior to the current 2024 fiscal-year ending on June 30, 2024. As of now, there is no approved funding to carry on the ILT work. Therefore, staff has developed three potential options for next steps and is seeking guidance from the Agency's Board of Directors.
OPTION 1: The Agency could budget $50,000 from Fund 130 (Hydroelectric Funds) for staff time to pursue alternative funding sources for ILT project and will suspend other work on the ILT until an alternative funding source is identified. The Agency has been working with the Natural Resources Conservation Service to explore potential eligibility for funding under the federal PL-566 Watershed and Flood Prevention Operations (WFPO) Program. WFPO could potentially bring up-to 75% of project funding if several federal criteria are meet. Additionally, the Agency would continue to seek state grant funding and adv...
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