The biggest challenge is to protect our groundwater supply from further seawater intrusion, and to provide a long term sustainable water supply for our community. To achieve this goal, we have developed a plan that includes groundwater replenishment with purified water to prevent further seawater intrusion and contamination of our groundwater supply. This project, PureWater Soquel has been fully evaluated and chosen as an integral part of the Groundwater Sustainability Plan developed by the Mid-County Groundwater Agency and submitted to the State of California. It is the only drought-proof option that will maintain a safe, reliable water supply even in the face of climate change. We have obtained a $50M grant and $36M low interest loan from the State of California, as well as an $89M very low interest loan from the Federal EPA. The project has been unanimously approved by our local jurisdictions, including the City of Santa Cruz and the California Coastal Commission. Engineering firms have been selected for the components of the project and we are proceeding. The challenge will be to effectively and efficiently carry this project through to completion while minimizing the cost to our customers. Without this project, there would be contamination of our only water supply, economic hardship of inadequate water supply and state control. Postponing the project would put all grants and low-interest loans at risk. The cost of water would be approximately 3 times higher and less water would be available
Another challenge is to negotiate a new agreement with the City of Santa Cruz for surface water transfers. Our 5 year pilot project has been fairly successful, but that ends at the end of this year and we would like to continue. Surface water transfers can only be part of our diversified water portfolio. It is not a reliable source, especially in times of drought, but it can still be an immportant component worth working towards.
I also want to continue to encourage conservation, work on stormwater recharge, maintain financial transparency, and keep taking good care of our excellent staff.