BOARD AGENDA MEMORANDUM
Government Code ? 84308 Applies: Yes ? No ?
(If "YES" Complete Attachment A - Gov. Code ? 84308)
SUBJECT:
Title
Receive Information on the Pacheco Reservoir Expansion Project, Project No. 91954002 (District 1, Merced County).
End
RECOMMENDATION:
Recommendation
Receive information on the Pacheco Reservoir Expansion Milestone Review, Project No. 91954002.
Body
SUMMARY:
On March 16, 2023, staff presented an update to the Board of Directors on the Pacheco Reservoir Expansion Project (PREP or project) as part of a Water Supply Master Plan update. In response to discussion during that Board meeting, staff will be providing quarterly updates to the Water Storage Exploratory Committee (Committee), followed by updates to the full Board.
Staff presented an updated timeline for PREP to the Committee on May 12, 2023. The updated timeline included major financial milestones from project inception through the project approval and award of construction contract. The necessary steps in securing partnership agreements have been detailed on the timeline at their anticipated completion dates. Additionally, the points at which Board approval will be required were identified.
Additional information has been added to the timeline (Attachment 1) in response to discussion during the Committee meeting to include adding project cost spent per fiscal year and additional detail to the environmental document timeline.
In response to Board comment during the March 16, 2023 meeting, staff worked with the consultant team to develop potential lost opportunity costs if the project does not move forward, with all opportunity costs presented in May 2023 dollars. Several potential lost opportunities were identified and studied, the first being securing emergency water supplies for Valley Water to use during outages and droughts. This opportunity cost took into account that 45% of Valley Water supplies are imported water allocations and assuming the probabil...
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