LAWA approves reduced $1.08M user outreach and financial modeling task order; seeks 75/25 state cost-share

The Lake Agassiz Water Authority board on March 27 approved a user-outreach and financial-modeling task order reduced to approximately $1.08 million from earlier estimates above $2.5 million, staff said. The task order will support negotiation of water delivery agreements with users and update financial models and cost estimates for the Red River Valley Water Supply Project.

Bruce and other staff described efforts to reduce scope and combine meetings to lower the cost; the North Dakota Department of Water Resources preliminarily indicated the task order could be eligible for 75% state cost-share, with local participants responsible for the remaining 25% and local series-F financing covering the local share. Staff said final state approval is subject to Department of Water Resources review.

Board members debated how administrative and outreach costs should be allocated among users. Several members noted that Fargo and Grand Forks previously absorbed larger shares and that smaller users who signed memoranda of commitment (MOCs) might not be prepared to pay the projected per-user amounts. Susan Thompson, co-chair of the finance advisory committee, said the $250,000 participant-transfer line and potential state cost-share could reduce pressure on local budgets but that the state participation had not been finalized.

The board approved the task order on a roll-call vote. Brent and other presenters said the work product will include draft delivery agreements and updated financial impacts for each user to inform outreach meetings. The task order and resulting materials are expected to be attachments to the water-delivery agreement that LAWA will seek to finalize with participating users.