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HomeMy WebLinkAboutItem 5d. Approve the City of SLO to Participate in the County of SLO Regional Desalination Executable Solution and Logistics (DESAL) Planning Efforts Item 5d Department: Utilities Cost Center: 6001 For Agenda of: 1/10/2023 Placement: Consent Estimated Time: N/A FROM: Aaron Floyd, Utilities Director Prepared By: Mychal Boerman, Utilities Deputy Director – Water Shawna Scott, Special Projects Manager SUBJECT: AUTHORIZATION TO ADOPT A RESOLUTION APPROVING THE CITY OF SAN LUIS OBISPO’S PARTICIPATION IN SAN LUIS OBISPO COUNTY’S REGIONAL DESAL PLANNING EFFORTS RECOMMENDATION 1. Authorize the City to be included in the San Luis Obispo County’s preliminary scoping and planning efforts to develop a Regional Desalination Executable Solution and Logistics (DESAL) Plan; and 2. Adopt a Draft Resolution entitled, “A Resolution approving City of San Luis Obispo participation in the San Luis Obispo County Regional Desalination Executable Solution and Logistics (DESAL) Plan”; and 3. Find the action exempt from the California Environmental Quality Act (CEQA). POLICY CONTEXT The City’s participation in the development of a regional Desalination Executable Solution and Logistics (DESAL) Plan is consistent with the City’s General Plan Water and Wastewater Element (WWE) Goal A.2.1 to “ensure a long-term, reliable water supply to meet both current and future water demand associated with development envisioned by the General Plan” and Policy A.2.2.1 (Multi-source Water Supply), which states that the “City shall utilize multiple water resources to meet its water supply needs” because the purpose of the DESAL Plan is to provide a local and reliable water supply for the San Luis Obispo region including the City of San Luis Obispo . The City’s participation is also consistent with WWE Program A.2.3.1, because staff would “work cooperatively on regional water issues and water resource planning.” DISCUSSION Background The purpose of this item is to authorize a resolution to participate in discussions about the potential for DESAL in the San Luis Obispo Region. The proposed Draft Resolution only authorizes staff to participate in discussions and in no way makes any fina ncial and/or policy commitments. Page 25 of 786 Item 5d It is the Utilities Department’s mission to ensure safe and reliable essential utilities services to the City community, including provision of safe and reliable potable water. The City’s current sources of drinking water consist of three surface reservoirs, which are dependent on rainfall: Nacimiento, Salinas (Santa Margarita Lake), and Whale Rock. Other supplies are in the planning stage such as potable reuse and groundwater that are dependent on a variety of capital investments and policy work. In addition, irrigation water demand is offset by the use of recycled water. As a result of long-term water source planning and water conservation programs set in motion decades ago, the City currently has more than ten years of water available under a continued drought scenario with current water supply and demand conditions (based on build -out of the General Plan).1 Regionally, the future reliability of water sources that depend on rainfall are predicted to be affected by climate change and drought, changing hydrologic patterns, environmental regulations, and population growth. In 2018, the City adjusted its anticipated supplies based on scientific modeling of the impact of climate change on seasonal rainfall patterns. Looking ahead decades into the future, a new, drought-proof, resilient, local water supply may be an optimal strategy to supplement the region. One of these options may be a regional desalination facility that would serve multiple water suppliers across the Count y. Desalination is a long-term and resilient strategy because it leverages a renewable, inexhaustible resource that would not be diminished by insufficient rainfall or water conservation efforts. Desalination is a drought-proof solution for water supply imbalances caused by strained alternative supplies and increased demand and could be scalable such that its capacity could be expanded as future needs increase. Four desalination facilities provide drinking water in California (State Water Resources Control Board, 2021) and two additional facilities were permitted by the California Coastal Commission over the past year in Dana Point and Marina. On August 11, 2022, California Governor Newsom released a publication titled California’s Water Supply Strategy Adapting to a Hotter, Drier Future that identifies desalination as one of several options for modernizing and diversifying water supply in the state. The Strategy also discusses how the “…State will help streamline and expedite permitting to provide clarity and to further desalination projects. By June 2023, the State Water Resources Control Board, California Coastal Commission, Department of Water Resources, and other state entities (State Land Commission) will develop criteria for siting of desalination facilities along the coast and recommend new standards to facilitate approval.” 1 Water Supply and Demand Assessment (City of San Luis Obispo, 2022) Desalination is process where salts are removed from saltwater, such as ocean water or brackish groundwater. The freshwater can then be further treated and supplied as potable (drinking) water. Page 26 of 786 Item 5d In addition to the optimization of existing water supplies, the County has initiated desalination planning efforts, recognizing that the timeframe for the long-range project will extend over multiple decades. County efforts included collaboration with the Countywide Water Action Team (CWAT), an informal working group of agency staff from the region with water supply planning responsibilities, including the City of San Luis Obispo, to develop a five-phase approach to developing a DESAL Plan and project (refer to DESAL Project Roadmap, below). On October 18, 2022, the San Luis Obispo County Board of Supervisors, acting as the San Luis Obispo County Flood Control and Water Conservation District (District), authorized County Staff to proceed with the development of the DESAL Plan in coordination with other participating water- purveying agencies and stakeholders, and authorized County Staff to pursue grants to offset project costs. The County is in the first phase of the process, which will consist of four steps: Source: County of San Luis Obispo, 2022 Source: County of San Luis Obispo, 2022 Page 27 of 786 Item 5d The County is now in Phase 1, Step 2 of the process, and is requesting authorizing resolutions from agencies agreeing to be evaluated in the DESAL Plan, noting that the DESAL Plan will be most robust if there is wide interest and involvement from the local water-purveying agencies and their communities. A Draft Resolution (Attachment A) is provided for the Council’s consideration. The County Flood Control District is the lead agency for the DESAL Plan which is somewhat unusual, but the District is the only San Luis Obispo County regional “water” entity. Typically, a regional water agency would do this work that is comprised of representative members that share governance and decision making through the terms of a Joint Powers Agency (JPA). Adopting the Resolution would give the City a seat at the table as a stakeholder, and allow the City to be evaluated and participate in the development of the scope of the DESAL Plan. Should further steps be taken to advance DESAL and should the City agree to participate, shared governance would be an essential component for decision making. The City’s involvement would be limited to Staff’s participation in coordination efforts and meetings, and provision of feedback and information that would inform the scope of the Plan and approach for stakeholder, agency, and public outreach and involvement. These efforts would be within the bounds of existing and ongoing coordination with the County and other regional partners on other similar issues related to water. Coordination and participation with our regional partners in these efforts will provide value to our community as the City continues to explore and vet diverse opportunities that would provide and maintain a safe, drought-proof, and resilient water portfolio for our community through the remainder of the century and beyond. Adopting the Resolution (Attachment A) would not result in the authorization or commitment of City funds to the project. As explicitly stated in the Draft Resolution, any future commitments or actions by the City beyond participation in the development of the DESAL Plan as described above would be subject to the full plenary discretion of the City Council. If the City does not adopt a resolution and does not participate in this phase of the DESAL planning process, the City will be excluded from County coordination efforts regarding the scope of the DESAL Plan and associated evaluation and outreach, and most likely any future options related to implementation of any future DESAL Plan. At this stage in the process, this item is deemed non-controversial and appropriate for the Consent Agenda because the action does not commit the City to adoption or approval of the DESAL Plan, and does not commit any funding associated with the project beyo nd Staff time consistent with the City’s standard practice of coordination and discussion with regional partners on regional water issues and water resource planning. Public Engagement The County anticipates that local stakeholder engagement and public in volvement will be facilitated by public meetings of the Water Resources Advisory Committee. At these meetings, County staff will provide regular updates and opportunities for public input. Page 28 of 786 Item 5d CONCURRENCE The City Attorney’s Office concurs with the requested action. ENVIRONMENTAL REVIEW The subject action is statutorily exempt from the California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines Section 15262 (Feasibility and Planning Studies), because the action is limited to the City’s participation in planning and evaluation efforts associated with the development of the DESAL Plan and would not result in any physical change to the environment, does not commit any funds to any physical improvements or investments, and does not create any new water supplies for the City or region that are known at this time that could reasonably and foreseeably induce growth . FISCAL IMPACT Budgeted: Yes Budget Year: 2022-23 Funding Identified: Yes/No Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund $N/A $N/A $N/A $N/A Total $N/A $N/A $N/A $N/A Approval of the Resolution does not obligate the City to any financial participation, and any financial obligation would be subject to Council approval. ALTERNATIVES Deny adoption of the Resolution. The City Council may choose to deny adoption of the Resolution. Staff does not recommend denial of the Resolution, as it would result in the exclusion of the City from County coordination efforts regarding the scope of the DESAL Plan and associated outreach, and it would exclude the City from any future options related to implementation of any future DESAL Plan. ATTACHMENT A - Draft Resolution approving City of San Luis Obispo Participation in the DESAL Plan Page 29 of 786 Page 30 of 786 R ______ RESOLUTION NO. _____ (2023 SERIES) A RESOLUTION APPROVING CITY OF SAN LUIS OBISPO PARTICIPATION IN THE SAN LUIS OBISPO COUNTY REGIONAL DESALINATION EXECUTABLE SOLUTION AND LOGISTICS (DESAL) PLAN WHEREAS, adequate water for the people, economy, and environment in San Luis Obispo County, including the City of San Luis Obispo, is needed in perpetuity; and WHEREAS, limitations surrounding use of the existing water supplies are increasing in the San Luis Obispo region, including limitations on groundwater use and transfers, limitations on surface water diversion , emergence of existing pollutant awareness, and State policies that lead to water system consolidation mandates; and WHEREAS, water use efficiency practices, low impact development, stormwater capture and recycled water programs have been implemented to help extend the limited water supplies but are insufficient to overcome regional long-term shortages and cannot be relied upon to sustainably meet future additional needs and maintain a reasonable quality of life in the San Luis Obispo region; and WHEREAS, despite Statewide conservation efforts which have reduced per capita consumption from 231 gallons per day to 146 gallons per day over the last 25 years in California1, and the City of San Luis Obispo’s current per capita water use rate is 97 gallons per day, San Luis Obispo County remains highly vulnerable to water shortages due to its isolated location and dependence on rainfall; and WHEREAS, the future reliability of existing water supplies and infrastructure that depend on rainfall, such as groundwater and surface water reservoirs and streams, will be affected by changing hydrologic patterns, land use, environmental regulatio ns, population growth, and aging infrastructure; and WHEREAS, water-purveying agencies in the County of San Luis Obispo, including the City of San Luis Obispo, are best positioned to develop and utilize water supply projects that will reduce dependence on groundwater and surface water; and WHEREAS, due to proximity to the ocean, and future water supply quantity, quality, and reliability needs, the 2019 San Luis Obispo County Integrated Regional Water Management Plan and 2012 Countywide Master Water Report identify desalination as a water resource management strategy to pursue; and WHEREAS, while desalination can provide a local and reliable water supply for decades to come, desalination projects take a long time to plan for, permit , finance, and construct; and 1 https://www.ppic.org/publication/water-use-in-california/ Page 31 of 786 Resolution No. _____ (2023 Series) Page 2 R ______ WHEREAS, the San Luis Obispo County Flood Control and Water Conservation District intends to develop the DESAL Plan over the next several years via a pub lic process that, when complete, will ultimately contain balanced recommendations related to responsibly advancing the implementation of a regional desalination project that will benefit the people, economy and environment in the County, including the City of San Luis Obispo; and WHEREAS, the San Luis Obispo County Flood Control and Water Conservation District will be the lead agency and contract administrator for the DESAL Plan and is requesting that water-purveying agencies that wish to be evaluate this source during the development of the DESAL Plan adopt resolutions approving participation; and WHEREAS, the City of San Luis Obispo’s participation enables the County of San Luis Obispo to include the City of San Luis Obispo as a potential partner in the planning, evaluation, and development of the regional DESAL Plan, and any future commitments and actions by the City beyond participation in the development of the DESAL Plan would be subject to the full and independent discretion of the City Council; and WHEREAS, the City of San Luis Obispo’s participation in the development of the regional DESAL Plan is consistent with General Plan Water and Wastewater Element Goal A.2.1 to “ensure a long-term, reliable water supply to meet both current and future water demand associated with development envisioned by the General Plan” and Policy A.2.2.1 (Multi-source Water Supply), which states that the “City shall utilize multiple water resources to meet its water supply needs” because the purpose of the DESAL Plan is t o provide a local, reliable, and sustainable water supply for the San Luis Obispo region including the City of San Luis Obispo; and WHEREAS, the City of San Luis Obispo’s participation in the development of the regional DESAL Plan is consistent with General Plan Water and Wastewater Element Program A.2.3.1 to “work cooperatively on regional water issues and water resource planning.” NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as that: SECTION 1. The City of San Luis Obispo wishes to be included in the development of the DESAL Plan and to be evaluated as a potential partner in such a regional desalination project in the future in order to inform our decision makers and constituents. SECTION 2. The Utilities Director, or designee, of the City of San Luis Obispo is hereby authorized and directed to participate in the development of the DESAL Plan, and to bring forward related recommendations for City Council consideration. This action does not authorize any funding towards preparation of the DESAL Plan. Page 32 of 786 Resolution No. _____ (2023 Series) Page 3 R ______ SECTION 3. Environmental Determination. The subject action is statutorily exempt from the California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines Section 15262 (Feasibility and Planning Studies), because the action is limited to the City’s participation in planning and evaluation efforts associated with the development of the DESAL Plan and would not result in any physical change to the environment, does not commit any funds to any physical improvements or investments, and does not create any new water supplies for the City or region that are known at this time that could reasonably and foreseeably induce growth. Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _______________ 20 23. ___________________________ Mayor Erica A. Stewart 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 Page 33 of 786 Page 34 of 786