LAWA updates: contracts near execution; staff update modeling for $50M in federal funds

Jeff Kovar reported a quiet winter on the Red River Valley Water Supply Project with a few hundred feet of pipe installed while contractors deliver aggregate and pipe. He said notices of award have been issued for recently bid contracts and that the project team has received contracts and insurance certificates; the board was told contracts 6b, 6c and 7a are nearly ready for final signature and have been added to the program schedule (tab Y).

On federal funding, a board member reported that Senator Hovind secured $50,000,000 in federal funding for the project. Staff said they are updating the financial model to show how federal dollars would reduce the state and local share across roughly $454,000,000 of the project that is federally eligible. Discussion emphasized timing uncertainty: speakers said the $50 million could materially reduce later state asks if delivered, but staff cautioned that timing and legislative treatment will determine how much near-term budget relief is available.

Board members discussed how federal funds interact with state cost-share rules (referencing House Bill 1020 from the last session, which envisioned a 75% state / 25% local split for federal funds the state takes). DWR staff advised waiting for the March cost-share study; the board agreed to coordinate further work with DWR and Garrison on modeling and legislative strategy.

No formal board action was taken on the federal funding report at this meeting; staff committed to follow up and circulate updated financial impacts to board members.