HomeMy WebLinkAbout11/15/2022 Item 7a, Dantona
November 14, 2022
Dear Mayor Stewart and Council Members,
On Tuesday you will be receiving a report from staff on the Recycled Water Maximization Study. The SLO
Chamber of Commerce appreciates the conversations that have taken place between the city, county, and
stakeholders of the SLO Valley Groundwater Basin to discuss future opportunities related to recycled water.
The SLO Chamber has been following these discussions closely and would like the City Council to recommend
that staff move expeditiously to turn these conversations into action with the following recommendations:
That the city should create two-tiers in deciding the use of available recycled water:
o Prioritize water for use within city limits
o Excess water should be made available for purchase to users outside the city limits
The city should make that water available at market rate (e.g., RFP, RFB, Auction, etc.) on short-term
contracts.
Urge the city to continue working on the potability of recycled water for the long-term sustainability of
the city.
As an example, staff has theorized that there might be 500-800 acre-feet available per year that could be utilized
outside the city limits. The benefits of potentially selling water to the Edna Valley growers would be twofold.
First, by selling recycled water that is currently being expelled into the creek, there would be revenue derived
from a process that is currently only creating an expense. Additionally, by providing water to the Edna Valley
growers, the city would be ensuring the long-term health of the agricultural industry which is providing an
enormous draw for the city’s tourism economy.
The SLO Chamber agrees that the city must investigate the legal implications of moving forward on this process
and ensure that it doesn’t create a liability. However, the city should feel secure that moving forward on this
process would not create a Proposition 218 liability. Only costs associated with moving the recycled water need
be considered, since the cost of recycling the water is already being born by the ratepayers. Any revenue
derived from the excess sale would alleviate the financial burden of recycling the water. The city should also
reconsider its General Plan policies to make the sale of recycled water to other entities both a possibility and
financially feasible.
Thank you for all the work that has gone into this, and we hope for action that will make the sale of city recycled
water a reality.
Sincerely,
Jim Dantona
President/CEO | San Luis Obispo Chamber of Commerce