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HomeMy WebLinkAbout10.2.19 PID-State Backfill Waugh, Melanie From: Gosselin, Paul Sent: Wednesday, October 2, 2019 8:48 AM To: BOS; McCracken, Shari; Clerk of the Board Cc: Buck, Christina Subject: FW: PID/State Backfill Attachments: 2019-08-14 LTR DeptofFinance_Authorized Backfill Funding.pdf; 2019-08-29 PID Reply to DeptofFinance_Request for Disbursement of Backfill Funcling.pdf Board Members— You may already be aware of this issue. The state is conditioning the funds provided to PID on them participating in a consolidation study. The State Water Resources Control Board has authority to force consolidation. Thank you. Paul Pau(gossean, Director Butte County Department of Water and Resource Conservation 308 Nelson Avenue Oroville, CA 95965 Office: (530) 552-3590 Cell: (530) 574.7443 From: Dustin Cooper<dcooper@minasianlaw.com> Sent:Tuesday, October 01, 2019 2:48 PM To: Gosselin, Paul <PGosselin@buttecounty.net> Subject: PID/State Backfill A ii ENTIOINI:This message originated from outside Butte County, Please exercise judgment before opening attachments,clicking on links, or replying. r, x..4:04T;71x, Z 0 C3, eX-14/1 DEPARTMENT OF NANCE AVINI NEW E-.311,01 Bi=1"V/EOZN4C3FR 915 I_ STREET II SACRAMENT 0 CA II 9519 1 4-3789111WWYV.001-.CA,GOV August 14, 2019 CeqraLVI. YU/ /114 • Mr. Kevin M. Phillips, District Manager Paradise irrigation District 6332 Clark Road Paradise, CA 95969 Dear Mr. Phillips: As part of the 2019 Budget Act allocation for fire relief efforts, there is $14,748,660 allocated to offset revenue the Paradise Irrigation District (District) is projected to lose in the 2019-20 and 2020-21 fiscal years because of damage caused by the October 2018 Camp Fire. The authorized backfill for each fiscal year is $7,374,330, subject to the conditions described below. The disbursement of these funds to the District is contingent on certain metrics. The first year's disbursement is contingent on the District agreeing to participate in a feasibility study, to be arranged by the State Water Resources Control Board and funded by the state, that will examine the possibility of consolidating the District's operations with one or more neighboring water districts. The second year's disbursement is contingent upon the District's continued participation in the feasibility study. If this is satisfactory to the District, please send a letter on official letterhead (an emailed .pdf is sufficient) agreeing to participate in the feasibility study and requesting disbursement of the funds. Please use the following address information for the letter: California Department of Finance Attn: Chris Hill, ETHLL Unit 915 L Street, 10° Floor Sacramento, CA 95814 The email address for the .pdf document is: chris.hill@dof.ca.gov In the letter, please also state to whom the payment should be remitted, and include any necessary bank account and/or routing information. Upon our receipt of the letter, we will instruct the State Controller's Office to remit the first fiscal year's relief payment to the District. The second fiscal year's relief payment will be provided after June 30, 2020. If you have any questions regarding the feasibility study, please contact Sergio Aguilar, Principal Program Budget Analyst, at (916) 324-0043. if you have any questions concerning the relief funding or the distribution process, please contact Chris Hill, Principal Program Budget Analyst, at (916) 445-3274, Sincerely ERIKA LI Program Budget Manager PA IS I 01 RIGATION DIST h.. ICT 1,,1,11111,11,1111.11,1111, ,A1 6332 Clark Road, Paradise CA 95969 I Phone (530)877-4971 I Fax (530)876-0483 ION 41 19 August 29, 2019 Via Email and USPS Chris.hill©dof.ca.gov California Department of Finance Attn: Chris Hill, ETHLL Unit 915 L Street, 10lh Floor Sacramento, CA 95814 Dear Mr. Hill: Thank you for the Department of Finance's letter allocating $14,748,660 ($7,374,330 in fiscal years 2019-20 and 2020-21) to Paradise Irrigation District. As you know, these funds are vital to the District's ongoing recovery and rebuilding effort following the devastating November 2018 Camp Fire. The District's banking information for remittance of the 2019-20 funds follows: Tri Counties Bank 6848 Q Skyway Paradise, CA 95969 Routing Number 121135045 General Acct. No.: 41305502 Concerning the disbursement of these funds, the Department's letter provides: The disbursement of these funds to the District is contingent on certain metrics. The first year's disbursement is contingent on the District agreeing to participate in a feasibility study, to be arranged by the State Water Resources Control Board and funded by the state, that will examine the possibility of consolidating the District's operations with one or more neighboring water districts. The second year's disbursement is contingent upon the District's continued participation in the feasibility study. Given the unprecedented scope of the Camp Fire and the roughly 90% loss of PID's customers, PID recognized early on that its financial challenges may extend beyond the state's willingness to provide backfill funding. To that end, the District has been planning for multiple possible future scenarios, including that it may take longer than expected for the community to rebuild to a point where the District is again financially sustained by its in-District customers. For that reason, PID has and will continue to analyze modifying its operations to ensure that it is both financially viable and positioned to provide a safe and affordable drinking water supply for Paradise at whatever California Department of Finance Attn: Chris Hill, ETHLL Unit August 29, 2019 Page Two of Two pace rebuilding occurs. For example, the District, in partnership with Butte County and California Water Service, are preparing a feasibility study analyzing an intertie project that would allow the District to deliver treated water to the County for use in Cal Water's Chico service area. This potential project would have the dual benefit of providing a revenue source to the District and could be a keystone project in the County's Groundwater Sustainability Plan due in 2022 pursuant to the Sustainable Groundwater Management Act. The Department's requirement that the District participate in a feasibility study analyzing possible consolidation of operations with other water districts is consistent with what the District is already doing — prudently planning for an uncertain future. The District agrees to participate in the feasibility study and looks forward to partnering with the State Water Resources Control Board, including working out details such as the scope of work for the study, selection of the consultant and administration of that contract, and how to best integrate this work with other studies and potential options available to the District. Ultimately, the residents of Paradise through the elected Paradise Irrigation District Board of Directors will determine what option or options are best suited for the community. Thank you again for facilitating the disbursement of the much needed backfill funds. Sincerely, Kevin M. Phillips District Manager 4., 4-e -1fp 5„.„i, 11/4 , GAVIN NEWSOM •• -0 ave C3 fl Z , 1 41 Iln ri i F.r,l; R D PI i (-': it. DEPARTMENT or LW I N A rq C E-- 915 L STREET n SACRAMENTO CA n 95914-3706 IN www.99r.cA.9C3v R-499",2 .r August 14, 2019 Z-4,1:0e.-- Mr. Kevin M. Phillips, District Manager Paradise Irrigation District 6332 Clark Road Paradise, CA 95969 Dear Mr. Phillips: As part of the 2019 Budget Act allocation for fire relief efforts, there is $14,748,660 allocated to offset revenue the Paradise Irrigation District (District) is projected to lose in the 2019-20 and 2020-21 fiscal years because of damage caused by the October 2018 Camp Fire. The authorized backfill for each fiscal year is $7,374,330, subject to the conditions described below. The disbursement of these funds to the District is contingent on certain metrics. The first year's disbursement is contingent on the District agreeing to participate in a feasibility study, to be arranged by the State Water Resources Control Board and funded by the state, that will examine the possibility of consolidating the District's operations with one or more neighboring water districts. The second year's disbursement is contingent upon the District's continued participation in the feasibility study. If this is satisfactory to the District, please send a letter on official letterhead (an emailed .pdf is sufficient) agreeing to participate in the feasibility study and requesting disbursement of the funds. Please use the following address information for the letter: California Department of Finance Attn: Chris Hill, ETHLL Unit 915 L Street, 10th Floor Sacramento, CA 95814 The email address for the .pdf document is: chris.hill@dof.ca.gov In the letter, please also state to whom the payment should be remitted, and include any necessary bank account and/or routing information. Upon our receipt of the letter, we will instruct the State Controller's Office to remit the first fiscal year's relief payment to the District. The second fiscal year's relief payment will be provided after June 30, 2020. If you have any questions regarding the feasibility study, please contact Sergio Aguilar, Principal Program Budget Analyst, at(916) 324-0043. If you have any questions concerning the relief funding or the distribution process, please contact Chris Hill, Principal Program Budget Analyst, at (916) 445-3274. Sincerely it.- 1_ —X. ERIKA LI Program Budget Manager