From: Mark Schmitt
To: City Council
Subject: Tonight's City Council Meeting/Agenda Item 9F Date: Tuesday,March 18,2025 12:34:10 PM
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Good morning City Council members,
Hopefully one of you can clarify a couple of questions I have regarding item 9F."State Water Control Board State Water Revolving Fund Financing"
After reading the proposed resolutions it states,"This resolution states the City's intention to reimburse expenditures paid prior to the issuance of the obligations or the approval of the State Water Board of the project funds in the principal amount of$50.0 million."
My first question is:
What if the State Water Board does not approve reimbursement of the project funds paid in advance by the City? Will the obligation then become the liability of the City's water rate payers? Second question:
The resolution also states,"the amount of the project cannot exceed the reimbursement amount in this resolution." ...and"Adopt a Resolution(Attachment 2)authorizing the advance of funds for planning,design and construction of the Central Coast Blue Recycled Water Project subject to later reimbursement by the State Water Resources Control Board."
Can we assume the intent of the two resolutions is to seek 100%full reimbursement from grants and reimbursement from the State Water Board for the planning,design and construction of the Central Coast Blue Recycled Water Proj ect?
Last question:
The Resolution states,"WHEREAS,...those moneys to be advanced on and after the date hereof to pay the Expenditures are available only for a temporary period and it is necessary to reimburse the Agency for the Expenditures from proceeds of the Obligations."
Are the"Obligations"mentioned another word for State Bonds,which would be passed through to the State taxpayers in the form of another Utility Bond that would manifest on our property tax bill in the future.
My general concern is that the cost of the Central Coast Blue Recycled Water Project will not be 100%fully reimbursed to the City by the Grants and the reimbursements from the State Water Board,and that any unreimbursed amount will become the liability of the City's water ratepayers and/or show up as another Water Bond fee on our future property tax bill.
An explanation to my three questions would be greatly appreciated prior to tonight's approval vote on this item.
Thank you in advance for your prompt reply.
Mark Schmitt,
Pismo Beach
Sent from my iPad