1. WATER STORAGE INVESTMENT PROGRAM Agenda Item 10: Early Funding Requests July 24, 2018

2. Early Funding (Regulations Section 6010)
May be available for:
Completion of Environmental Documents and Permits; and
Only the applicants that requested early funding and identified a need in their application
Projects must have an Implementation Risk Score of at least 7
Commission may approve up to 5% of a project’s MCED; no more than $135 million total for all projects
Reimbursements can be made for work performed after submittal of application
Funding through the WSIP may be available for the completion of environmental documents and permits (otherwise known as Early Funding). This funding may be available for applicants that made a request in the application and identified a need for the funds.
Some of the other requirements for Early Funding include a minimum component score of 7 for implementation risk, the funding amount cannot exceed 5% of the project’s MCED and overall, no more than $135 million would be available for all of the projects receiving an MCED.
Also, reimbursements can be made for work performed going forward from the date of application submittal which was August of 2017.
Water Storage Investment Program

3. Applications Requesting Early Funding
Pacheco Reservoir Expansion $24,200,000
Los Vaqueros Reservoir Expansion $13,650,309
Temperance Flat Reservoir $22,075,000
Sites Reservoir $45,925,500
These four projects requested early funding: Pacheco Reservoir Expansion, Los Vaqueros Reservoir Expansion, Temperance Flat Reservoir and Sites Reservoir. Next to each project name is the amount that was requested in the application package, prior to any changes in funding request amounts or final MCEDs.
Water Storage Investment Program

4. Early Funding Funding recipients must provide 50% cost share
Included within, not in addition to, MCED
Funds disbursed for work in arrears
Funding agreement template available on CWC Website
Includes standard funding language
Will require a budget, schedule and scope for early funding work
Requires periodic reporting and invoicing
Some things to keep in mind regarding Early Funding:
Keeping with the requirements of Proposition 1, there is required 50% cost share.
This funding is part of the overall Maximum Conditional Eligible amount
Funds are only reimbursed after work is completed
And the funding is subject to the conditions of a funding agreement. The CWC has posted an agreement template on the website and it includes standard funding language. Each funding agreement would include a budget, schedule and scope of work specific to the project and it requires periodic reporting and requirements for invoicing.
Water Storage Investment Program

5. The Commission has the Discretion to:
Decide if early funding is warranted
Decide the early funding amount
So today the Commission has the discretion to decide if the early funding is warranted to the four projects and if so, what the funding amount should be. I’m going to briefly go over the 4 requests for early funding.
Water Storage Investment Program

6. Pacheco Reservoir Early Funding Request
Early funding request: $24.2 million
Tasks and budget items identified
District Labor $14.9 million
Project Management Services $20.0 million
Planning $7.6 million
Design and Environmental Documents $23.5 million
Land Acquisition $5.8 million
Contingency $14.3 million
Total costs $86.1 million
First we will talk about Pacheco Reservoir’s Early Funding Request.
The application request is for $24.2 million dollars and this is generally made up of the following budget items: District labor, Project management, planning, design and environmental documents, land acquisition and contingency. Their total costs for these budget items is $86.1 million. Their funding request meets the 5% of MCED cap.
Water Storage Investment Program

7. Pacheco Reservoir Early Funding Request
Schedule
30% design April 2021
Final design Sept 2023
Final environmental documents and permits Jan 2024
Stated need for early funding
Aggressive schedule to meet statutory deadlines
The application also indicates a general schedule and at the time of application, the schedule indicates that by mid 2021 design will be at 30%, final design is set for September of 2023 and environmental documents should be finalized and permits obtained by early The application indicated that early funding would be needed to meet statutory deadlines.
Water Storage Investment Program

8. Los Vaqueros Reservoir Early Funding Request
Early funding request $13.6 million
Tasks and budget items identified
Environmental Documents $11.0 million
Permitting $7.4 million
Water Rights $12.4 million
Total costs $30.8 million
The Los Vaqueros Reservoir Expansion project had requested $13.6 million and their request included budget items for environmental documents, permitting and water rights. The total costs came out to $30.8 million.
Water Storage Investment Program

9. Los Vaqueros Reservoir Early Funding Request
Schedule
Final environmental document late 2018
Permits including water rights mid 2021
Begin construction early 2022
Stated need for early funding
Aggressive schedule to meet regulatory requirements
The schedule for Los Vaqueros at the time of application was to have final environmental documentation in late 2018, permits including water rights by mid 2021 and it was indicated that construction could start in early 2022.
It was indicated in the application that early funding is needed to meet the aggressive schedule and the regulatory requirements.
Water Storage Investment Program

10. Temperance Flat Reservoir Early Funding Request
Early funding request $22.1 million
Tasks and budget items identified
Project Management $8.0 million
Project Definition $23.5 million
Environmental Documents $5.8 million
Permits $6.8 million
Total costs: $44.1 million
Maximum early funding amount:
5% of potential MCED amount ($ million) is $8.56 million
The Temperance Flat Reservoir project had requested $22.1 million in the application. The budget items included project management, a project definition, environmental documentation, and permits. The total costs are $44.1 million. Since the MCED is $ million, staff calculated that 5% of that amount is $8.56 million. This is the maximum amount that could be set aside for early funding.
Water Storage Investment Program

11. Temperance Flat Reservoir Early Funding Request
Schedule
Environmental documents initiated Spring 2018
Final environmental documents Winter 2021/2022
Permits obtained by Summer 2022
Stated need for early funding
Use WSIP funding to leverage investors to commit to project
Some highlights of the schedule in the application included that environmental documents would be initiated in spring of 2018, final env docs in late 2021 or early 2022 and that permits would be obtained by summer of The need for early funding stated in the application was that funding from this program could leverage investors to commit to the project.
Water Storage Investment Program

12. Sites Reservoir Early Funding Request
Early funding request: $45.9 million
Tasks and budget items identified
Permits $85.2 million
Project management $12.7 million
Environmental Documents $5.4 million
Total costs $103.3 million
The Sites Reservoir project requested $45.9 million for early funding. The budget items included permits, project management and environmental documents. The overall costs came out to $103.3 million.
Water Storage Investment Program

13. Sites Reservoir Early Funding Request
Schedule
Final Environmental Documents (EIR/EIS) 2019
Most permits in 2020 or 2021
Construction begins 2022
Stated need for early funding
To ensure approvals obtained and to meet schedule
The Sites schedule as of the submittal of the application stated that final environmental documents would be completed in 2019, most permits in 2020 or 2021 and construction could begin in 2022.
The applicant needs early funding to ensure all approvals are obtained and to maintain the schedule.
Water Storage Investment Program

14. Proposition 1
In closing, for any projects that are awarded early funding, staff would work with the applicants to put together a funding agreement that would include an updated schedule, scope of work and budget that are directly related to completing environmental documents and obtaining permits. And staff would work with the applicants to make sure that the funded tasks are allowable costs.
Water Quality, Supply, and Infrastructure Improvement Act of 2014
Water Storage Investment Program