BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Budget Adjustment Transferring $7 Million from Multiple Water Utility Debt Service Projects to the Imported Water Unit for Emergency Water Purchases.
End
RECOMMENDATION:
Recommendation
Approve a budget adjustment transferring $7 million from multiple Water Utility debt service projects (No. 95993007, 95993008, 95993025, 95993026) to the Imported Water South Bay Aqueduct Deliveries project (No. 91131007) for emergency water purchases.
Body
SUMMARY:
A budget adjustment transferring $7 million in FY 2020-21 Water Utility debt service savings, due to lower than anticipated interest rates, to the Imported Water Unit is recommended to ensure sufficient funds are available for emergency water purchases in calendar year (CY) 2021. The adjustment would require transferring the following amounts to the Imported Water South Bay Aqueduct Deliveries project (No. 91131007):
a. $1 million from Commercial Paper Tax Exempt, Project No. 95993007
b. $1 million from Commercial Paper Taxable, Project No. 95993008
c. $1.5 million from WU Rev Bond 2020A (Tax-Exempt), Project No. 95993025
d. $3.5 million from WU Rev Bond 2020B (Taxable), Project No. 95993026
Due to persistent statewide dry hydrologic conditions and low projected allocations on the Central Valley Project (CVP) and State Water Project (SWP), Santa Clara Valley Water District (Valley Water) requires emergency water supplies in CY 2021 to maintain sufficient groundwater storage levels. These conditions are exacerbated by dry conditions locally and the loss of water supply resulting from the recent Federal Energy Regulatory Commission order to reduce Anderson Reservoir storage to deadpool.
To mitigate this need, staff negotiated a water transfer agreement (#A4443W) with Glenn-Colusa Irrigation District (GCID), which was executed on April 1, 2021, for the purchase and delivery of up to 35,000 acre-feet (AF) of GCID's water supplies to Valley Water in CY 2021. The agreem...
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