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Agency seeks financing options after DWR denies FEMA rehabilitation grant; aims for 2026 construction on Nacimiento protection work
Summary
General Manager Ara told the board the agency will reapply for dam rehabilitation funding after DWR did not award a FEMA rehabilitation grant for the San Antonio outlet project and that staff are exploring financing alternatives for major dam safety work.
General Manager Ara briefed the board on personnel and funding developments, dam safety project timelines, and financing options for major dam safety work.
Ara said the agency completed a geotechnical field investigation for the Nacimiento plunge‑pool project and is awaiting a scope from AECOM for slope protection design; the agency is targeting construction commencement in 2026 to align with grant expiration dates for a 2023 DWR grant.
On San Antonio Dam, Ara said the Department of Water Resources did not award a FEMA rehabilitation of high‑hazard dam grant for the low‑level outlet rehabilitation project. "DWR said with limited funding they could not support this project; we have reapplied under the state's dam safety projects," Ara said. He described continued pursuit of state and federal funding and noted there are no guarantees.
Ara said staff met with municipal financial advisor Fieldman Rolapp to analyze capital financing approaches for a hypothetical $200 million program of dam safety work. The advisor compared options including traditional fixed‑rate municipal bonds, WIFIA loans (and equivalents), State Revolving Fund loans, commercial paper, and hybrids. Ara said the advisor's scenarios showed material differences in long‑term cost: "The difference can be, at least in these scenarios ... as much as $65,000,000," he said, noting the example assumed a 30‑year horizon.
He also flagged growing borrower covenant requirements in WIFIA agreements and potential higher cost relative to other market options. Staff proposed bringing Fieldman to the finance committee in February to present financing options.
Other updates: staff continue work on the Monterey One reconciliation and water operations assessment, and the agency plans additional stakeholder and grant deliverable briefings in early 2025. The general manager said the agency will pursue extensions on some grant terms where permitted and will continue to track FEMA reimbursement for 2023 storm repairs.
Provenance: GM report introduced at 02:22:16 and covered multiple topics through the meeting close.
