HomeMy WebLinkAboutR-11096 authorizing use of Water Fund Unreserved Working Capital for the Disinfection Byproduct ReduR 11096
RESOLUTION NO. 11096 (2020 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AUTHORIZING USE OF WATER FUND
UNRESERVED WORKING CAPITAL TO INCREASE CONSTRUCTION
CONTINGENCIES FOR THE DISINFECTION BYPRODUCT
REDUCTION AND WATER TREATMENT PLANT PIPE GALLERY
IMPROVEMENTS PROJECT, SPECIFICATION NO. 1000044
WHEREAS, to ensure that water is safe to drink, the U.S. Environmental Protection
Agency and the State Water Resources Control Board prescribe regulations that limit certain
contaminants in water provided by public water systems, including total trihalomethanes, or
TTHMs; and
WHEREAS, the City’s 2015 Potable Water Distribution System Operations Master Plan
was approved by the City Council in 2016. The Master Plan discussed the challenges in meeting
Stage 2 disinfection byproducts water quality regulations associated with tank turnover and water
age; and
WHEREAS, on March 19, 2019, the City Council approved a budget of $1,850,000 for
the Water Treatment Plant (WTP) and Water Distribution System Disinfection Byproduct
Reduction Project (Project); and
WHEREAS, in June 2019, the City Council approved 2019-21 Financial Plan, Capital
Improvement Program, identified a total Project budget of $1,850,000; and
WHEREAS, on July 8, 2019, the City Manager approved an amendment to the design
scope of the Project to include improvements to the WTP pipe gallery in response to severe pipe
corrosion and the high consequence of failure; and
WHEREAS, on October 22, 2019, the City Council approved a total Project budget of
$2,674,250 for Project construction; and
WHEREAS, on November 18, 2019 the City Manager approved the award of the Project
with a construction contract totaling $1,990,700 utilizing 173,700 of available contingencies; and
WHEREAS, to ensure adequate funding is available for completion of the Project, staff is
recommending the City Council approve use of $250,000 from Water Fund, Unreserved Working
Capital; and
WHEREAS, a balance of approximately $14 million is available from Water Fund,
Unreserved Working Capital to fund the Project.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
Resolution No. 11096 (2020 Series) Page 2
R 11096
SECTION 1. The City Council authorizes staff to transfer $250,000 from the Water Fund,
Unreserved Working Capital to the Disinfection Byproduct Reduction and Water Treatment Plant
Pipe Gallery Improvements Project, Specification No. 1000044, as it is a high priority City project
as shown in the attached Budget Amendment Request (Exhibit A).
SECTION 2. Environmental Review. Construction of this project is exempt from the
California Environmental Quality Act (CEQA) per categorical exemption 15301(b), Existing
Facilities. The Community Development Department issued a Notice of Exemption on September
9, 2019
Upon motion of Vice Mayor Gomez, seconded by Council Member Pease, and on the
following roll call vote:
AYES: Council Member Christianson, Pease, Stewart, Vice Mayor Gomez and
Mayor Harmon
NOES: None
ABSENT: None
The foregoing resolution was adopted this 17th day of March 2020.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, on ______________________.
____________________________________
Teresa Purrington
City Clerk