When the Woodland-Davis Clean Water Agency announced last week it had secured $38 million in state and federal grant money to fund a Sacramento River water intake facility, some saw it as a huge success, but others didn’t.

It probably depends on whether you see the glass half full or half empty.

According to Assistant City Manager Paul Navazio, the $38 million pays only for Reclamation District 2035’s share of the joint intake structure, and because RD 2035 already had factored that money into its budget, the overall cost of the proposed surface water project — $337 million — does not change.

On the other hand, without that money, RD 2035 would not have been able to fully fund its share of the intake structure. And because it is responsible for 80 percent of that project, it could have put the water agency in a tight spot.

“If (RD 2035 is) either told that the funds are not coming or doesn’t have commitments for the grant money, then our project is kind of stuck,” Navazio said. “Either we would have to pay more and front them some money hoping one day they would get that grant money, or go to Plan B and build an alternative intake site just to meet the needs of the two cities.”

Navazio also said, however, if RD 2035 did not receive the grant money, the project still would have moved forward.

“The project did not hinge on the RD 2035 intake,” Navazio added. “It just could be used to shave money off the project.”

The grant funding will come through the Central Valley Project Restoration Fund, which allocates funds to projects that restore habitats for fish and other wildlife.

Dennis Diemer, general manager of the water agency, said the agency’s share of the intake facility is about $15.6 million. Without the state and federal money, that bill could have grown by about $13 million.

However, Diemer said Thursday that other factors could reduce the overall cost of the project, such as other federal and state grant funding and how much the design-build-operate contractor who eventually gets the bid charges for the work.

Meanwhile, the Davis City Council hasn’t given up on looking at other ways to decrease the cost of the project.

At its meeting Tuesday, the council passed a resolution granting City Manager Steve Pinkerton the authority to hire a contractor that will re-examine a West Sacramento water supply option that the city had considered 10 years ago. The new assessment will cost Davis $100,000.

If the agency decided to go with the West Sacramento option, the structure would need to be expanded and a pipeline would need to be built across the Yolo Bypass to Davis.

The agency chose not to pursue this option originally because Davis and UC Davis had not yet had their water rights applications approved by the state. Those applications since have been approved.

Davis officials have said the water agency would consider the West Sacramento option only if it substantially reduces the overall cost of the surface water project. Staff hopes to complete the assessment by June.

— Reach Tom Sakash at [email protected] or (530) 747-8057. Follow him on Twitter @TomSakash

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