The City Council and the staff were asked to explain the financial scenarios if the project were to fail to perform. Neither we nor they have a crystal ball and their answers did not address the potential financial shortfall because of so many unknown unknowns.
City ordinance requires WSN to provide water rights or pay a fee in-lieu-of. WSN has provided no water rights and instead opted to pay the fee-in-lieu-of. WSN has offered to pay $5,556,744 towards water rights and the plant investment costs – $292,000 (5%) up front and $5,264,744 (95%) in deferred fees by the year 2034. Revenues from these deferred fees depend on sales. This places the City at risk if the project does not perform as planned, or fails.