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Home My WebLink About2023 Whale Rock Commission Meeting Agenda PacketWHALE ROCK COMMISSION MEETING AGENDA Thursday, May 4, 2023 3:30 PM Regular Meeting 990 PALM STREET CITY COUNCIL HEARING ROOM The City of San Luis Obispo, who administers the Whale Rock Commission meetings, has returned to in-person meetings. Zoom participation will not be supported for the Whale Rock Commission meeting. The meeting will be held at 990 Palm Street in the Council Hearing room of the City of San Luis Obispo City Hall Building. Seating will be limited capacity and masks are strongly recommended. Instructions for Public Comment Public Comment prior to the meeting (must be received 3 hours in advance of the meeting) Mail - Delivered by the U.S. Postal Service. Address letters to the City Clerk's Office at 990 Palm Street, San Luis Obispo, California, 93401. Email - Submit public comments via email to cityclerk@slocity.org. In the body of your email, please include the name of the meeting (Whale Rock Commission meeting), the date of the meeting (May 4, 2023), and the agenda item number (if applicable) relating to your comment. Voicemail - Call (805) 781-7164 and leave a voicemail. Please state and spell your name, mention that your message is in regard to the Whale Rock Commission meeting, state the agenda item number you are calling about, and leave your comment. Verbal comments must be received 3 hours in advance of the noticed meeting and will be limited to 3 minutes. All voicemails will be forwarded to the Commissioners and saved as Agenda Correspondence. All comments submitted will be placed into the administrative record of the meeting. Public Comment during the meeting: Meetings have returned to an in-person format. To provide public comment during the meeting, you must be present in the Council Hearing Room. Zoom participation will not be supported. The Council Hearing Room is located in City Hall, 990 Palm Street, San Luis Obispo. If you have questions, please contact the City Clerk's Office at cityclerk@slocity.org or (805) 781-7114. Packet Page #1 Whale Rock Commission Meeting Agenda, May 4, 2023 3:30 PM REGULAR MEETING 990 PALM STREET CITY COUNCIL HEARING ROOM CALL TO ORDER: (City Staff) ROLL CALL: Chair Emily Jackson, Vice Chair Dennis Elliot, Commissioner Erica Stewart, Commissioner Derek Johnson, Commissioner Nathan Gaughan, Commissioner Dane Mathis. PUBLIC COMMENT: At this time, the public may address the commission about items not on the agenda, within the Commission's jurisdiction. Persons wishing to speak should follow the aforementioned procedures related to public comment. Comments are limited to three minutes per person. Items raised at this time are generally referred to staff and if action by the Commission is necessary, it may be scheduled for a future meeting. AGENDA 1.MINUTES REVIEW – DRAFT 2022 WHALE ROCK COMMISSION MEETING MINUTES Recommendation: Approve the Draft April 21, 2022, Whale Rock Commission Meeting Minutes. 2.ELECTION OF OFFICERS – ANNUAL ELECTION OF THE WHALE ROCK COMMISSION CHAIR, VICE CHAIR, AND SECRETARY Historically, the chair position rotates among the commission partners. At the pleasure of the Commissioners, the next rotation would be Dennis Elliot, Chair; Erica Stewart, Vice-Chair; Derek Johnson, Commission Secretary. After the election of officers, the new Chair presides over the meeting. Recommendation: Appoint Dennis Elliot as Commission Chair, Erica Stewart as Commission Vice- Chair, and Derek Johnson as Commission Secretary. Packet Page #2 Whale Rock Commission Meeting Agenda, May 4, 2023 PRESENTATIONS 3. 2022-23 ACCOMPLISHMENTS Receive a presentation of staff's 2022-23 accomplishments. 4. POTENTIAL WHALE ROCK STANDBY POLICY MODIFICATION Receive a presentation outlining potential modification to the Whale Rock Standby policy. BUSINESS ITEMS 5. FY 2021-22 FINANCIAL STATEMENTS Receive a presentation of the 2021-22 Whale Rock Financial Statements. Recommendation: Receive and File Fiscal Year 2021-22 Financial Statements. 6. 2023-24 WHALE ROCK RESERVOIR BUDGET Receive the 2023-24 Budget presentation for the Whale Rock Reservoir, including capital improvement projects (CIP) and Commission member contributions, and consider budget adoption. Recommendation: Adopt the 2023-24 Whale Rock Reservoir Budget. 7. AUTHORIZE USE OF CAPITAL RESERVE BALANCES TO SUPPLEMENT SPECIFIC PROJECT BUDGETS. Receive a presentation regarding staff’s request for budgetary flexibility that will increase project delivery success and stabilize year-to-year member agency financial contributions. Recommendation: Authorize the use of Capital Outlay Reserve balances to supplement project budgets for the Spillway Underdrain Repair project, the Dairy Creek Pipeline Repair project, and the Roadway Pavement project, if bids exceed available project funding. Packet Page #3 Whale Rock Commission Meeting Agenda, May 4, 2023 8. ADVERTISEMENT OF STILLING BASIN DRAIN, CLEAN, AND INSPECT PROJECT Receive a presentation on the Stilling Basin Drain, Clean, and Inspect Project. Recommendations: 1. Authorize staff to advertise for bids for the Stilling Basin project. This would include bids for environmental monitoring, stilling basin cleaning, and an inspection and condition report upon completion of de sign plans and environmental permitting; and 2. Authorize the City of San Luis Obispo City Manager to award contracts to lowest responsible bids that are within the remaining project budget of $218,500, or can be supplemented through the use of Capital Reserve Balances; and 3. Adopt a Draft Resolution entitled, “A Resolution adopting the Mitigated Negative Declaration for the Stilling Basin Drain, Clean, and Inspect Project” adopting the Initial Study/Mitigated Negative Declaration and associated Mitigation, Monitoring, and Reporting Program. 9. DELAY ADVERTISEMENT OF TRANSMISSION PIPELINE REPAIR PROJECT Receive a presentation detailing current pipeline repair strategies and opportunities to pursue alternative pipeline repair and rehabilitation strategies. Recommendations: 1. Authorize staff to delay advertisement of the Dairy Creek Pipeline Repair Project, Specification No. 91617, awaiting results of the Alternative Pipeline Replacement Study and the completion of repairs of the Nacimiento pipeline; and 2. Authorize staff to enter into a contract with HDR Engineering to complete an Alternative Pipeline Replacement Study in an amount not to exceed $51,000; and 3. Following completion of the Alternative Pipeline Replacement Study, authorize staff to proceed with advertisement for repairs of the Whale Rock pipeline, as designed, or to advertise for repairs utilizing a more effective repair/replacement methodology if identified within the Alternative Pipeline Replacement Study; and 4. Authorize the City of San Luis Obispo City Manager to utilize up to $557,456 from Capital Reserve Balances to supplement the Dairy Creek Pipeline Repair project budget, if bid amounts exceed available project budget of $513,544 but remain under the engineer’s estimate of $1,071,000; and 5. Find the above actions statutorily and categorically exempt from the California Environmental Quality Act (CEQA). Packet Page #4 Whale Rock Commission Meeting Agenda, May 4, 2023 COMMISSION REPORTS & COMMUNICATION Commissioners may make announcements, report on activities, refer to staff issues for study and report back to the Commission at a subsequent meeting. ADJOURN Commissioners: Commission Chair - Dennis Elliot, California Polytechnic State University Commission Vice Chair - Erica A. Stewart, City of San Luis Obispo Commission Secretary - Derek Johnson, City of San Luis Obispo Commissioner - Nathan Gaughan, California Men's Colony Commissioner - Emily Jackson, City of San Luis Obispo Commissioner - Dane Mathis, State Department of Water Resources Packet Page #5 Whale Rock Commission Minutes Whale Rock Commission Meeting – May 4, 2023 Agenda Item 1 – Draft 2022 Whale Rock Commission Meeting Minutes CALL TO ORDER A Regular Meeting of the Whale Rock Commission was called to order on Thursday, April 21, 2022, at 1:32 p.m. in the Council Hearing Room located at City Hall, 990 Palm Street, San Luis Obispo, by City Staff. ROLL CALL Present: Chair Jason Steck, Vice Chair Brigitte Elke, Commissioner Dennis Elliot, Commissioner Derek Johnson, Commissioner Carlyn Christianson for Erica A. Stewart Absent: Commissioner Dane Mathis Staff Present: Noah Evans, Whale Rock Supervisor; Mychal Boerman, Deputy Director-Water; Debbie Malicoat, Accounting Manager/Controller; Teresa Purrington, City Clerk PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA Kristine Headland Ed Griggs Tina Metzger --End of Public Comment-- CONSIDERATION OF MINUTES 1.WHALE ROCK COMMISSION MINUTES OF APRIL 29, 2021 ACTION: MOTION BY COMMISSIONER JOHNSON, SECOND BY COMMISSIONER ELLIOT, 5-0-1 (Commissioner Mathis absent) to approve the minutes of the Regular Meeting of the Whale Rock Commission of April 29, 2021. 2.ELECTION OF OFFICERS – ANNUAL ELECTION OF THE WHALE ROCK COMMISSION CHAIR, VICE CHAIR, AND SECRETARY Recommendation: Appoint Brigitte Elke as Commission Chair, Dennis Elliot as Commission Vice-Chair, and Erica A. Stewart as Commission Secretary. ACTION: MOTION BY COMMISSIONER JOHNSON, SECOND BY COMMISSIONER CHRISTIANSON, CARRIED 5-0-1, (Commissioner Mathis absent) Packet Page #6 Minutes Whale Rock Commission Meeting – April 21, 2022 that Commissioner Elke is appointed as Chair, Commissioner Elliot is appointed as Vice-Chair and Commissioner Stewart as Secretary. Meeting turned over to new Chair Elke. PRESENTATION 3. 2021-22 ACCOMPLISHMENTS Noah Evans, Whale Rock Supervisor Provided a presentation of the 21-22 accomplishments. Public Comments: None --End of Public Comment-- ACTION: No action taken. BUSINESS ITEMS 4. FY 2020-21 FINANCIAL STATEMENTS Tavy Garcia, Senior Accountant provided a presentation on the Fiscal Year 2020-21 Financial Statements. Public Comments: None --End of Public Comment-- ACTION: MOTION BY VICE CHAIR ELLIOT, SECOND BY COMMISSIONER CHRISTIANSON, 5-0-1 (Commissioner Mathis absent) to receive and file as presented. 5. 2021-22 WHALE ROCK RESERVOIR BUDGET AMENDMENT Mychal Boerman, Deputy Director-Water provided a presentation on proposed budget amendments. Public Comments: None --End of Public Comment-- ACTION: MOTION BY COMMISSIONER JOHNSON, SECOND BY VICE CHAIR ELLIOTT, 5-0-1, (Commissioner Mathis absent) to: Packet Page #7 Minutes Whale Rock Commission Meeting – April 21, 2022 1.Authorize staff to utilize $60,000 of Whale Rock Unreserved Working Capital to purchase 30” pipe and pipe fittings to have on-hand for emergency pipeline repairs; and 2.Authorize staff to utilize $30,000 of Whale Rock Unreserved Working Capital to supplement existing budget for design of the Whale Rock Pipeline Replacement Project. 6.2022-23 WHALE ROCK RESERVOIR BUDGET Mychal Boerman, Deputy Director-Water provided a presentation on the 2022-23 Whale Rock Reservoir budget. Public Comments: None --End of Public Comment-- ACTION: MOTION BY VICE CHAIR ELLIOTT, SECOND BY COMMISSIONER CHRISTIANSON, 5-0-1 (Commissioner Mathis absent) to adopt the 2022-23 Whale Rock Reservoir Budget. 7.ADVERTISEMENT OF TRANSMISSION PIPELINE REPAIR PROJECT, SPECIFICATION NO. 91617 Mychal Boerman, Deputy Director-Water provided a presentation on the transmission pipeline repair project. Public Comments: None --End of Public Comment-- ACTION: MOTION BY COMMISSIONER CHRISTIANSON, SECOND BY VICE CHAIR ELLIOTT, 5-0-1 (Commissioner Mathis absent) to: 1.Authorize staff to advertise for bids for the Transmission Pipeline Repair Project construction; and 2.Authorize City of San Luis Obispo City Manager to award the Transmission Pipeline Repair construction project is within 15% over the Engineer’s estimate of $510,000, with the 15% overage coming from Unreserved Working Capital. COMMISSION REPORTS & COMMUNICATION Mychal Boerman Deputy Director – Water provided an update on recent Water Board requirements. ADJOURNMENT Chair Elke adjourned the meeting at 2:31 p.m. Packet Page #8 City of San Luis Obispo, Title, Subtitle Whale Rock Commission Report Whale Rock Commission Meeting – May 4, 2023 Agenda Item 2 – Election of Whale Rock Commission Officers FROM: Aaron Floyd, Utilities Director PREPARED BY Noah Evans, Whale Rock Reservoir Supervisor SUBJECT: Election of Whale Rock Commission Officers RECOMMENDATION Appoint Dennis Elliot as Commission Chair, Erica Stewart as Commission Vice Chair, and Derek Johnson as Commission Secretary. DISCUSSION Historically, the chair position rotates among the commissioners. At the pleasure of the commissioners, the next rotation would be Dennis Elliot, Chair; Erica Stewart, Vice Chair; Derek Johnson, Commission Secretary. After the election of officers, the new Chair presides over the meeting. The newly elected Chair, Vice Chair, and Secretary will maintain their positions on the commission for a single-year term, until new appointments are made during the 2024-25 Whale Rock Commission meeting. Future Commission Officer Rotation Schedule Year Chair Vice Chair Secretary 2022-23 (Current Year) City of SLO Finance Director Cal Poly Representative City of SLO Mayor 2023-24 (Upcoming Year) Cal Poly Representative City of SLO Mayor City of SLO City Manager 2024-25 City of SLO Mayor City of SLO City Manager DWR Representative 2025-26 City of SLO City Manager DWR Representative CMC Representative 2026-27 DWR Representative CMC Representative City of SLO Finance Director 2027-28 CMC Representative City of SLO Finance Director Cal Poly Representative Packet Page #9 City of San Luis Obispo, Title, Subtitle Whale Rock Commission Report Whale Rock Commission Meeting – May 4, 2023 Agenda Item 3 – 2022-23 Accomplishments FROM: Aaron Floyd, Utilities Director PREPARED BY: Noah Evans, Whale Rock Supervisor SUBJECT: 2022-23 Accomplishments RECOMMENDATIONS No action is requested of the commission for this update/presentation. DISCUSSION Whale Rock staff are responsible for the maintenance, repair, and upkeep of all Whale Rock facilities and infrastructure, including the dam, spillway, intake structure, transmission pipeline, public access areas, and all other associated infrastructure. Significant accomplishments for 2022-23 include: 1. Approval of the Whale Rock Reservoir Emergency Action Plan (EAP) by all regulatory agencies. 2. Approval of the Spillway Underdrain Repair plans and specifications by the Division of Safety of Dams (DSOD). 3. Staff participated in the development of the Dairy Creek pipeline repair design plans. 4. Staff implemented Cityworks asset management software at Whale Rock. 5. Staff purchased and installed a new fuel tank for the generator at Pump Station B. 6. Staff completed the re-roof CIP project at the Whale Rock office and residence. 7. Staff awarded a contract to replace up to $20,000 worth of fencing at the reservoir. 8. Two pipeline condition consultants performed testing on the leaking Whale Rock pipe that was removed from the Morro Bay area last year to understand why the pipe failed. A detailed presentation of the 2022-23 Whale Rock accomplishments and impacts from recent storms will be provided during the commission meeting. New Fuel Tank at Pump Station B Packet Page #10 Whale Rock Commission Report Whale Rock Commission Meeting – May 4, 2023 Agenda Item 4 – Potential Whale Rock Standby Policy Modification FROM: Aaron Floyd, Utilities Director PREPARED BY: Mychal Boerman, Utilities Deputy Director - Water SUBJECT: Potential Whale Rock Standby Policy Modification RECOMMENDATION No action is requested of the commission for this update/presentation. DISCUSSION The two Water Supply Operators at Whale Rock Reservoir are members of the S an Luis Obispo City Employees Association (SLOCEA) bargaining group. In 2022 SLOCEA and the City of San Luis Obispo ratified their Memorandum of Agreement (MOA) to span from July 1, 2022 through June 30, 2025. This ratification was signed by the City Council on December 22, 2023. As part of this ratification, Article 7 – Section D of the agreement, which addresses Standby, was modified to include the following language: D. The parties shall establish a committee to study how to either increase the financial incentive for standby duties for employees required to be on standby more than once per month or decrease the standby work for impacted employees. This study will be done within six months of Council ratification with recommendations provided to the City Manager. Reduced Whale Rock Standby While Whale Rock is currently the only operating section within the City where staff are required to take standby more than once per month, standby requirements at Whale Rock have existed for many years and impacts from standby shifts have been greatly reduced in the last few years. All employees who currently work at Whale Rock were aware of standby obligations when hired and modifications to standby frequency have not been made while any existing staff were employed at Whale Rock. Furthermore, through the utilization of remote pump station start-up and shutdown, most call-backs at Whale Rock are able to be accommodated remotely, without physically responding to the facility. Additionally, the Whale Rock Supervisor is currently the first call that the City’s Water Treatment Plant makes if they need support from Whale Rock after hours, the Supervisor’s presence living on-site has greatly reduced the number of standby calls that Whale Rock’s Water Supply Operators respond to, thus reducing overtime expenditures. Committee Meetings In alignment with Article 7 – Section D, outlined above, the City’s Human Resources Department is organizing a series of committee meetings to address the frequency of standby shifts at Whale Rock. As of the drafting of this report, meetings are scheduled for April 4th, April 12th, and May 8th. Packet Page #11 During the first meeting on April 4th, the committee identified several feasible modifications that could reduce the number of standby shifts at Whale Rock or provide supplemental funding. Other alternatives may be identified during future committee meetings and may ultimately be considered by the City Manager, in accordance with the SLOCEA MOA. Identified options included: 1. Integrate the dam keeper occupant into the Whale Rock standby rotation. The Whale Rock dam keeper’s residence is currently occupied by the Whale Rock Supervisor. As part of the agreement for living on-site, it may be feasible for a reduction in rent to be offered as compensation for coverage of standby shifts. The Whale Rock supervisor who currently resides at the dam keeper’s residence currently responds to the majority of after-hours call outs in alignment with requirements of occupancy of the Whale Rock dam keeper’s residence. 2. Elimination of standby duties for Whale Rock staff. With the City’s Water Treatment Plant Operators and Water Distribution Operators currently taking standby, it may be feasible for standby staff from either of these two facilities to conduct standby duties for Whale Rock in addition to their current standby duties. 3. Increase standby compensation when an employee exceeds one standby shift per month. As outlined in Article 7 - Section D of the SLOCEA MOA, SLOCEA is interested in examining the option of increasing standby pay for staff if more than one standby occurrence is required per month. This option does not address complaints that staff have voiced related to the impact of standby on staff members’ personal lives but is consistent with Article 7 - Section D of the MOA. 4. Combination of coverage from Water Supply Operators, dam keeper’s residence occupant and other water fund standby operations. This option includes requiring standby for the two Water Supply Operators and for the occupant of the Whale Rock dam keeper’s residence. These staff members’ standby shifts could be supplemented by allowing standby staff from the City’s water treatment plant and water distribution section to take voluntary standby shifts at Whale Rock if they were available. If the Water Supply Operator positions were required to cover one standby shift per month, and the dam keeper’s residence occupant was required to cover either one shift or two shifts per month, very few voluntary shifts would remain open. This option is being examined and vetted out by the committee and currently has the most committee-level support of the proposed options. Options not outlined in this staff report may be identified during the remaining committee meetings and brought forward to the City Manager for consideration. Upon the City Manager’s review of the standby committee’s identified opportunities for standby modification, staff will provide an email update to the Commission should any modifications be made to current standby operations. Modifications to standby operations are not anticipated to impact service levels delivered to commission member agencies. Packet Page #12 City of San Luis Obispo, Title, Subtitle Whale Rock Commission Report Whale Rock Commission Meeting – May 4, 2023 Agenda Item 5 – FY 2021-22 Financial Statements FROM: Aaron Floyd, Utilities Director PREPARED BY: Mychal Boerman, Utilities Deputy Director – Water Tavy Garcia – Senior Accountant SUBJECT: FY 2021-22 Financial Statements RECOMMENDATIONS Receive and File Fiscal Year 2021-22 Financial Statements. DISCUSSION Each year the City receives an independent audit of the Whale Rock Commission’s financial statements. This audit provides an opinion as to whether the financial statements are prepared, in all material respects, in accordance with accounting principles generally accepted in the United States of America. For the 2021-22 fiscal year, the auditors have issued a “clean” opinion, meaning that the financial statements are presented fairly in all material respects. The Management’s Discussion and Analysis section includes financial and operational highlights for the fiscal year and summary information on the Commission’s financial position at year end. As in prior years, the auditors have also provided a report on the internal controls over financial reporting and, consistent with the findings for the City’s Annual Comprehensive Financial Report, identified two areas of improvement, with one being a material weakness related to journal entry posting, and the other being a significant deficiency related to payroll module implementation. These findings, along with the City’s responses are incorporated into the last section of the audited financial statements (pages 37-43). The City’s finance department will work to correct these two issues over the next year. The Whale Rock Commission 2021-22 Financial Statements, as well as the auditor’s reports, are provided in Attachment 1 – FY 2021-22 Audited Financial Statements. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15278. ALTERNATIVES The commission could choose to request modifications to the financial statements if an error is detected with the statements included in Attachment 1. Packet Page #13 City of San Luis Obispo, Title, Subtitle Whale Rock Commission Report Whale Rock Commission Meeting – May 4, 2023 Agenda Item 5 – FY 2021-22 Financial Statements ATTACHMENTS A - FY 2021-22 Audited Financial Statements B – Auditor’s Communication with those Charged with Governance Packet Page #14 Whale Rock Commission Report Whale Rock Commission Meeting – May 4, 2023 Agenda Item 6 – 2023-24 Whale Rock Reservoir Budget FROM: Aaron Floyd, Utilities Director PREPARED BY: Mychal Boerman, Utilities Deputy Director - Water SUBJECT: 2023-24 Whale Rock Reservoir Budget RECOMMENDATION Adopt the 2023-24 Whale Rock Reservoir Budget. DISCUSSION The Whale Rock Commission considers the Operating, Salary and Benefits, Capital, and Electrical Pumping Budgets for Whale Rock Reservoir on an annual basis and approves the budgets during its annual commission meeting. Details regarding budgetary requests for 2023- 24 are discussed below. Staffing and Operating Budget The proposed 2023-24 budget for operation of the Whale Rock Reservoir includes ongoing maintenance and upkeep of Whale Rock facilities and includes costs for maintenance and operation of the dam, spillway, intake structure, transmission pipeline, and pump stations. The budget also includes costs associated with maintenance and upkeep of public access and recreation areas, the dam keeper shop and residence, and tools and equipment required for daily work. General Government expenses found within the Operating Budget fund support services that are provided by the City’s internal support departments such as Human Resources, Finance, City Clerk’s Office, and City Attorney’s Office. Table 1 and Table 2 below present the Operating and Salaries and Benefits budgets proposed for Whale Rock Reservoir for fiscal year 2023-24. Most operating accounts carry either minor increases or decreases associated with year-to-year variation in planned work activities and refinements based on past-year spending. The Machinery and Equipment account is requested to increase from $20,000 to $60,000. This account funds the purchase of machinery and equipment related to repairs at Whale Rock such as inline valve replacements, pipeline repairs, monitoring equipment replacements, etc. The requested increase is being made based on the cost of recent valve replacements and pipeline repairs which have increased dramatically over the past few years. If the requested funding in this account is not needed during years without pipeline leaks or other equipment failures, it will be returned to reserves where it can be utilized to fund future CIP projects or to offset future funding requests from commission members. Packet Page #15 Table 1 - Operating Budget Budget Category Adopted 2022-23 Budget Proposed 2023-24 Budget Contract Services $143,296 $127,350 Data Processing Services $7,800 $6,200 Maintenance $8,200 $15,400 Legal Services $5,000 $5,000 Office Supplies $2,500 $1,500 Employee and Volunteer Recognition $500 $500 Membership and Certifications $1,471 $600 Education and Training $8,900 $6,100 Trips and Meetings $1,500 $1,500 Office and Facility Electricity $8,400 $11,760 Agency Pumping Expenses $365,400 $535,400 Communication Service (Radio, Cell, Fiber) $12,080 $12,100 Solid Waste Service $1,900 $2,500 Construction Materials and Supplies $5,800 $5,800 Equipment Maintenance Supplies $4,300 $5,000 Chemicals $400 $500 Miscellaneous Materials and Supplies $18,420 $19,650 Safety Materials and Supplies $2,272 $2,000 Machinery and Equipment $20,000 $60,000 Control Systems $0 10,776 General Government $190,202 $274,374 Total $808,341 $1,104,010 Table 2 – Salaries and Benefits Budget Budget Category Adopted 2022-23 Budget Proposed 2023-24 Budget Salaries $462,648 $484,777 Benefits $228,335 $196,331 Total $690,983 $681,108 Capital Projects Capital Improvement Project Funding Request To reduce large fluctuations in CIP budget requests on a year over year basis, Whale Rock participants have opted to contribute to projects over multiple years in advance of project delivery. For instance, the total cost for a project to rehabilitate Pump Station A and Pump Station B is estimated at $1,960,620. Whale Rock Commission member agencies have elected to pay between $180,000 and $221,377 per year over a ten-year period from 2015-16 through 2024-25 to fund this project. This payment is referred to as a payment to “CIP Reserves”. In Packet Page #16 some cases, projects are not able to be funded in advance and must be fully funded by Whale Rock Participants in the year they are anticipated to be constructed, these projects are generally the result of emerging regulations or unanticipated equipment failure that requires immediate action. Tables 3-5 below categorize CIP investments into three major categories related to Infrastructure Projects, IT Projects, and Fleet Purchases. Table 6 provides the total CIP contribution being requested from each agency in the 2023-24 Whale Rock Budget, including Cal Poly’s annual “Reserves Catch-Up” payment. Table 3 - Infrastructure Projects Project Name Project Delivery Year Total Project Budget 2023-24 Contribution Valve Replacement 2027-28 $400,000 $25,085 Shop Pavement Replacement 2029-30 $50,000 $5,000 Transmission Pipeline Repair (Resulting from 2nd 10-Year Inspection1) 2026-27 $510,000 $127,500 Transmission Pipeline Repair Design (Resulting from 2nd 10- Year Inspection) 2025-26 $60,000 $15,000 Transmission Pipeline Reinspection (2nd 10-Year Inspection) 2027-28 $550,00 $53,316 Pump Station Rehabilitation 2024-25 $1,926,620 $214,929 Closed Tube Piezometer Replacement 2024-25 $108,923 $11,941 Evaporation and Weather Station Replacement 2025-26 $25,398 $2,985 Fencing Replacement 2023-24 $20,000 $20,000 Stilling Basin Cleaning 2023-24 $227,542 $47,542 Pipeline Replacement Alternatives Study 2023-24 $51,000 $51,000 Total 2022-23 Infrastructure Projects CIP $574,298 Table 4 - IT Projects Project Name Project Delivery Year Total Project Budget 2023-24 Contribution Virtual Private Network Replacement (IT) 2023-24 $625 $625 Total 2022-23 IT Projects CIP $625 1 The Transmission Pipeline Repair Project is an ongoing work effort that consists of multiple stages of analysis and repair. Pre-Calibration repair funding will be utilized to remove approximately 2 25 feet of Whale Rock Pipeline. Removed pipeline will be analyzed and used to update the Whale Rock Pipeline Condition Analysis model. Funding for Post-Calibration design will be utilized to fund designs for any repairs that are necessary if model recalibration results in the need to remove additional pipe. Packet Page #17 Table 5 - Fleet Purchases Project Name Project Delivery Year Total Project Budget 2023-24 Contribution F150 4x4 Pickup (Replacement) 2025-26 $76,572 $17,283 4x4 3/4 Ton Truck with Utility Box & Crane (Replacement) 2025-26 $75,000 $7,164 4x4 SUV/Jeep (Replacement 2025-26 $60,000 $15,000 John Deere Tractor (Replacement) 2023-24 $75,000 $3,000 Total 2023-24 Fleet Purchases CIP $42,447 Table 6 – Total Proposed CIP Contribution Total 2022-23 Infrastructure Projects Contribution $574,298 Total 2022-23 IT Projects Contribution $625 Total 2022-23 Fleet Contribution $42,447 Cal Poly CIP Reserve Catch Up2 $76,579 Total 2023-24 Proposed CIP $693,949 Electrical Pumping Charges Pacific Gas and Electric (PG&E) rates were raised approximately 20 percent in FY 22-23 and are anticipated to be increased by at least 23 percent in the first quarter of FY 2023-24. Whale Rock staff have proposed increases to electricity budgets for each participant according to year-to-date electrical expenditures in 2022-23, projected PG&E rate increases, and discussions with agency staff related to expected water needs. Electrical Pumping Charges are passed directly from the City to member agencies based on proportional share of water delivered. Electricity pumping charges are not collected through the Agency Contributions during the Whale Rock budgeting process, meaning member agencies are recommended to allocate funding in their agency budgets to accommodate electrical expenses separate from funding allocated to the commission. Projected electrical expenditures are as outlined in Table 7 below. Table 7 - 2023-24 Electricity/Pumping Billing Allocations Agency Estimated Electrical Billings City of San Luis Obispo $178,080 Cal Poly $248,400 California Men’s Colony incl. DCGC $108,920 2 Cal Poly began making contributions to CIP Reserves in 2020 -21 and makes additional contributions annually to “catch up” on projects where Reserve Contributions were not made between 2015 -16 and 2020-21. Packet Page #18 Total 2023-24 Electricity Billing $535,400 Member Agency Contribution Allocations Projected Whale Rock Commission member contributions for the 2023-24 budget are calculated by totaling all projected Whale Rock expenditures and subtracting revenues the Commission anticipates collecting through pumping charges, investment income, day use fees, and other revenue sources. Total expenditure and revenue projections for FY 2023-24 can be seen in Table 8 and Table 9 below. The total budgetary request for all member agencies can be seen in Table 10, with an agency-by-agency break-down provided in Table 11. Table 10 – 2023-24 Whale Rock Budget Request Expenditures (Table 8) $2,479,067 Revenues (Table 9) ($542,400) 2023-24 Contribution Request $1,936,667 Table 8 – 2023-24 Whale Expenditure Projections Expenditure Category Amount Operating (Table 1) $1,104,010 Salaries and Benefits (Table 2) $681,108 Capital Improvements (Table 6) $693,949 Total $2,479,067 Table 9 – 2023-24 Whale Rock Revenue Projections Revenue Category Amount Whale Rock Pumping Charges $535,400 Investment Income $1,000 Other Revenue $6,000 Total $542,400 Table 11 – Member Agency Allocations 2021-22 2022-23 2023-24 Adopted Budget Adopted Budget Proposed Budget City of San Luis Obispo (55.05%) O&M Allocation $ 522,494 $ 620,372 $684,116 CIP Contribution-Actual $ 460,966 $ 206,064 $67,253 CIP Contribution-Reserve $ 268,362 $ 197,856 $272,609 Total Annual Contribution $ 1,251,822 $1,024,291 $1,023,978 Cal Poly State University (33.71%) O&M Allocation $ 319,950 $ 379,886 $418,920 CIP Contribution-Actual $ 282,273 $ 126,184 $41,183 Packet Page #19 ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15278. ALTERNATIVES The Whale Rock Commission members may elect not to approve the budget as proposed or may elect to modify elements of the proposed budget. This alternative is not recommended as the proposed budget allocates funding for staffing, electrical costs, Capital Improvement Projects, and costs for other essential functions related to the safety of Whale Rock Reservoir and delivery of raw water from the reservoir for basic health and safety needs. ATTACHMENT A - Whale Rock Fund Analysis CIP Contribution-Reserve $ 164,332 $ 121,157 $166,933 Additional Catch-Up Reserve $ 76,579 $ 76,579 $76,579 Total Annual Contribution $ 843,135 $ 703,806 $703,615 California Men's Colony (11.24%) O&M Allocation $ 106,682 $ 126,666 $139,681 CIP Contribution-Actual $ 94,119 $ 42,074 $13,732 CIP Contribution-Reserve $ 54,793 $ 40,398 $55,661 Total Annual Contribution $255,594 $209,138 $209,074 Total Member Contribution $2,350,551 $1,838,125 $1,936,667 Packet Page #20 Whale Rock Commission Report Whale Rock Commission Meeting – May 4, 2023 Agenda Item 7 – Authorize Use of Capital Reserve Balances to Supplement Specific Project Budgets FROM: Aaron Floyd, Utilities Director PREPARED BY: Mychal Boerman, Utilities Deputy Director - Water SUBJECT: AUTHORIZE USE OF CAPITAL OUTLAY RESERVE BALANCES TO SUPPLEMENT SPECIFIC PROJECT BUDGETS RECOMMENDATIONS Authorize the use of Capital Outlay Reserve balances to supplement project budgets for the Spillway Underdrain Repair project, the Dairy Creek Pipeline Repair project, and the Roadway Pavement project, if bids exceed available project funding. DISCUSSION Background Beginning in 2015-16 the Whale Rock Commission modified its financial practices to allow for advanced collection of funding for Capital Improvement Plan (CIP) project delivery. This new practice allows member agencies to make contributions toward future projects in order to reduce the year-to-year fluctuation in Whale Rock funding requests tied to capital project delivery. As an example, the Whale Rock Pump Station Upgrades project is scheduled to occur in 2024-25, with total costs estimated to be approximately $2,000,000. In order to not bill commission members the full $2,000,000 project cost in a single year, member agencies have been making contributions of approximately $200,000 per year for ten years. Funding collected for future projects is held in an account referred to as the Capital Outlay Reserve account and commonly referred to as the Capital Outlay Reserve balance, or CIP Reserves. In addition to reducing year-to-year budget variability, the Capital Outlay Reserve balance also allows the commission flexibility if project costs increases or if project delivery priorities change over time. In the past few years, the construction industry has seen substantial cost increases, with some water-related infrastructure costs, such as raw pipeline commodity prices increasing nearly 150 percent over a four-year period. This cost increase has resulted in several Whale Rock projects having insufficient budgets to deliver the projects. In order to increase flexibility in project delivery, staff are requesting authorization to utilize Capital Outlay Reserve balances from specific projects (to be outlined later in this report) to supplement project budgets for several projects that were previously approved by the Commission for advertisement and construction. If funding from the Capital Outlay Reserve balance is utilized for a project other than the one it was collected for, the defunded project may need to be delayed, and new funding requests would be made of the commission members in future years to replenish project funds. If the funding is not needed, the projects would move forward as proposed. Packet Page #21 Capital Outlay Reserve Balance Project Funding Sources Staff have identified projects that are not driven by regulatory requirements or public safety and can afford to be delayed. For these projects, funds can be reprioritized to support higher value projects. Projects that staff have identified where funding can be reprioritized to higher need projects are located in the following table: Total CIP Reserve Availability of Identified Projects Project Name Total Available Funding Pipeline Inspection and Repair Project Funds - Round #2 $494,531 Valve Replacement Project – Round #2 $99,655 Shop Pavement Replacement $20,000 Intake Valve Replacement $202,636 Boston Whaler Replacement $28,000 Total Available Funding $844,822 Projects Proposed to Utilize CIP Reserve Balances If necessary, several Whale Rock CIP projects may need to utilize CIP Reserve funding from the projects identified above in order to maintain essential operations, ensure public safety, or meet regulatory deadlines. These projects include the Spillway Underdrain Repair project, the Dairy Creek Pipeline Repair project, and the Roadway Pavement project. These three projects have completed designs and will soon go out to bid. If the lowest bidder exceeds available project funding, staff recommend that the San Luis Obispo City Manager be granted authorization to utilize the $844,822 available in the Capital Outlay Reserve account to supplement project budgets in order to ensure high-need projects are delivered. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action, because the action does not constitute a “Project” under CEQA Guidelines Section 15278. FISCAL IMPACT The proposed modification allows for reprioritization of collected CIP Reserve funds from specific projects to be utilized to ensure delivery of other higher-need projects. This action does not in itself create a fiscal impact for Whale Rock participants. If funding reallocation is required for any projects, staff will return to the Commission at the 2024 Whale Rock Commission meeting to request new funding to refund the depleted projects or to reprioritize project delivery timelines. ALTERNATIVES Direct staff to return to the Whale Rock Commission with requests for additional funding if any of the aforementioned projects’ lowest bids exceed available project funds. This alternative is not recommended as it requires the Commission to call special meetings and may delay project delivery. ATTACHMENTS No attachments. Packet Page #22 Whale Rock Commission Report Whale Rock Commission Meeting – May 4, 2023 Agenda Item 8 – Advertisement of Stilling Basin Drain, Clean, and Inspect FROM: Aaron Floyd, Utilities Director PREPARED BY: Mychal Boerman, Utilities Deputy Director – Water Noah Evans, Whale Rock Reservoir Supervisor SUBJECT: ADVERTISEMENT OF STILLING BASIN DRAIN, CLEAN, AND INSPECT PROJECT RECOMMENDATIONS 1. Authorize staff to advertise for bids for the Stilling Basin project. This would include bids for environmental monitoring, stilling basin cleaning, and an inspection and condition report upon completion of design plans and environmental permitting; and 2. Authorize the City of San Luis Obispo City Manager to award contracts to lowest responsible bids that are within the remaining project budget of $218,500, or can be supplemented through the use of Capital Reserve Balances; and 3. Adopt a Draft Resolution entitled, “A Resolution adopting the Mitigated Negative Declaration for the Stilling Basin Drain, Clean, and Inspect Project” adopting the Initial Study/Mitigated Negative Declaration and associated Mitigation, Monitoring, and Reporting Program. DISCUSSION Background The Whale Rock spillway was inspected during the Comprehensive Spillway Assessment (2018). The Stilling Basin was not inspected due to the presence of water and vegetation inside the structure making visual observations impossible. The Division of Safety of Dams (DSOD) is requiring Whale Rock Reservoir staff (as supported by qualified consultants where needed) to conduct an engineering inspection and author a report detailing the condition of the Stilling Basin. The resulting report will become an addendum to the Comprehensive Spillway Assessment Report and will provide a complete condition assessment of the Whale Rock Reservoir Spillway and Stilling Basin. The Stilling Basin needs to be drained and cleaned in order to inspect the condition of the concrete. After the cleaning process, HDR Engineering, an on-call consultant with the City Whale Rock’s Stilling Basin Packet Page #23 will visually inspect the Stilling Basin structure and author a condition report to be submitted to the DSOD for approval. If deficiencies are identified during the inspection the DSOD may make recommendations to repair the defects. The Whale Rock Commission (Commission) previously approved $30,000 to fund biological consulting services in the 20-21 budget. Terra Verde Environmental Consulting has completed multiple site visits and a nighttime study to identify species that may be impacted by this project. Terra Verde has identified the possibility of special-status species including nesting birds, red-legged frogs, tidewater goby, and steelhead being present in or near the stilling basin. In addition, the Project site contains wetland habitat and waters subject to the jurisdiction of the California Department of Fish and Wildlife and Regional Water Quality Control Board. No federal wetlands were identified. Terra Verde has applied for the required permits that will be necessary to implement basin dewatering, silt removal, and cleaning prior to inspection. Following the Commission’s consideration and adoption of the Initial Study/Mitigated Declaration prepared for the project and approval of the project, Terra Verde will complete the environmental permitting and the project may proceed to construction. ENVIRONMENTAL REVIEW An Initial Study/Mitigated Negative Declaration (IS/MND) was prepared for this Project. The IS/MND found the following environmental factors to be less than significant upon implementation of identified mitigation measures: Air Quality, Biological Resources, Cultural Resources, Geology and Soils, Hazards and Hazardous Materials, Hydrology and Water Quality, Noise, and Tribal Cultural Resources. The IS/MND and Notice of Availability/Notice of Intent (NOA/NOI) to Adopt a Mitigated Negative Declaration was circulated for public and agency review from January 5 through February 6, 2023. The IS/MND was submitted to the State Clearinghouse, who distributed it to affected state agencies. Staff provided the NOA/NOI and IS/MND to federal and local agencies, Tribes, and interested parties. The document and required notices were posted on the City’s website. One comment letter was received during the public review period; the letter from the San Luis Obispo Air Pollution Control District (SLOAPCD) identifies standard regulations and requirements for naturally occurring asbestos. Implementation of the project will include compliance with these regulations. FISCAL IMPACT Total project funding allocated to this project through the 2021-22 and 2022-23 budgets equaled $180,000. In 2022-23, $9,042 has been used or allocated to environmental consulting and permitting through Terra Verde Environmental, Central Coast Regional Water Quality Control Board, or California Department of Fish and Wildlife, leaving an available balance of $170,958. The 2023-24 Whale Rock budget request identifies $47,542 in additional funding required to supplement the existing project budget, leaving a remaining balance of $218,500 for this project. This funding would support environmental compliance, cleaning of the stilling basin, and the inspection and condition report. Packet Page #24 Remaining Costs for Stilling Basin Cleaning and Inspection Stilling Basin Cleaning $55,000 Environmental Compliance $65,000 Construction Management $20,000 Inspection and Condition Report Update $50,000 15% Contingency $28,500 Total $218,500 Supplemental Capital Reserve Balance Availability Project Name Total Available Funding Pipeline Inspection and Repair Project Funds - Round #2 $494,531 Valve Replacement Project – Round #2 $99,655 Shop Pavement Replacement $20,000 Intake Valve Replacement $202,636 Boston Whaler Replacement $28,000 Total Supplemental Funding Available $844,822 ALTERNATIVES Whale Rock Commission members may elect not to adopt the IS/MND and approve the Project for advertisement for bids at this time. Staff does not recommend this alternative as it would not allow the State mandated inspection and report to be completed and may result in the facility being deemed as non-compliant with state regulations. ATTACHMENTS A Draft Resolution entitled, “A Resolution Adopting the Mitigated Negative Declaration for the Stilling Basin Drain, Clean, and Inspect Project.” B Initial Study/Mitigated Negative Declaration and Mitigation, Monitoring, and Reporting Program for the proposed Project. Packet Page #25 Whale Rock Commission Report Whale Rock Commission Meeting – May 4, 2023 Agenda Item 9 – Delay Advertisement of Transmission Pipeline Repair Project FROM: Aaron Floyd, Utilities Director PREPARED BY: Mychal Boerman, Utilities Deputy Director - Water Noah Evans, Whale Rock Reservoir Supervisor SUBJECT: DELAY PIPELINE REPAIR PROJECT, SPECIFICATION NO. 91617, AWAITING ALTERNATIVE PIPELINE REPLACEMENT STRATEGIES STUDY RECOMMENDATIONS 1.Authorize staff to delay advertisement of the Dairy Creek Pipeline Repair Project, Specification No. 91617, awaiting results of the Alternative Pipeline Replacement Study and the completion of repairs of the Nacimiento pipeline; and 2.Authorize staff to enter into a contract with HDR Engineering to complete an Alternative Pipeline Replacement Study in an amount not to exceed $51,000; and 3.Following completion of the Alternative Pipeline Replacement Study, authorize staff to proceed with advertisement for repairs of the Whale Rock pipeline, as designed, or to advertise for repairs utilizing a more effective repair/replacement methodology if identified within the Alternative Pipeline Replacement Study; and 4.Authorize the City of San Luis Obispo City Manager to utilize up to $557,456 from Capital Reserve Balances to supplement the Dairy Creek Pipeline Repair project budget, if bid amounts exceed available project budget of $513,544 but remain under the engineer’s estimate of $1,071,000; and 5.Find the above actions statutorily and categorically exempt from the California Environmental Quality Act (CEQA). DISCUSSION Background The Whale Rock pipeline was installed in 1960 and provides raw water to the California Men’s Colony (CMC)and City of San Luis Obispo (City) water treatment plants for use at CMC, Cal Poly, and the City. The 30-inch diameter concrete cylinder pipe spans approximately 18 miles, beginning at Whale Rock Reservoir (Reservoir) and ending at the City’s water treatment plant. The pipeline is pressurized via gravity from the Whale Rock Reservoir until the pressure is required to be boosted at two pump stations, one in the town of Cayucos, and another near the shooting range along highway 1. Whale Leaking Whale Rock Pipeline (January 2022) Packet Page #26 Rock pipeline failures are uncommon but are expected to increase in frequency as the pipeline surpasses 60 years of service life. The Whale Rock Commission contracted with Pure Technologies in 2017 to conduct an inspection of the interior of the Whale Rock pipeline. The inspection was designed to use magnetic resonance technology to identify areas of the pipeline with metal loss which increases the likelihood of pipeline failure. Inspection results documented a segment of the pipeline, located at the Dairy Creek Golf Course, as having significant defects. The consultant recommended prioritizing replacing this section of the pipeline. To date, Commission members have made contributions amounting to $90,000 for project design and $510,000 for construction and construction management to replace the identified segment of pipe. The Commission approved funding for Fiscal Year 2021-22 for the Transmission Pipeline Repair Project design work, with construction originally anticipated to occur in 2022-23. During the first few months of 2023, a consultant completed the project design plans which include an engineer’s cost estimate ranging from $659,000 to $1,071,000. In the current bidding environment, staff believes that the actual project cost may be closer to the high range of the engineer’s cost estimate. Staff are requesting authorization to enter into a contract with HDR Engineering, an on-call consultant with the City, to conduct an alternative pipeline replacement study. Funding for this study was requested as part of the 2023-24 Whale Rock Budget and will cost $51,000. Understanding additional pipeline replacement strategies will provide a framework for renewing the Whale Rock pipeline in a more cost-efficient manner. The examination of replacement strategies will consider technologies and methodologies for replacement of small segments of pipeline (such as that identified at Dairy Creek), as well as replacement or lining of the pipeline in its entirety. Dairy Creek Pipeline Repair Deferral Staff is requesting that the Commission authorize deferral of going out to bid for pipeline repairs at Dairy Creek Golf Course until the Alternative Pipeline Replacement Study is completed to identify alternatives to in-kind pipeline replacement for the Whale Rock Pipeline. The 2018 pipeline inspection that was conducted identified approximately 225 feet of pipeline in need of replacement/repair within the Dairy Creek golf course. The study also identified another 800 feet of pipeline requiring replacement/repair. With construction and raw material costs at all-time highs, staff believe it would be prudent to examine alternatives to full-scale pipeline replacement such as utilization of Cure in Place Pipe, Spray in Place Pipe, and utilizing the existing pipe as a conduit for pulling a smaller diameter pipe into place. These alternatives may provide cost savings on the proposed Dairy Creek repair and opportunities for lower-cost repair/replacement of the remaining 800 feet of known deficiencies. This will also position the Commission for more informed decisions related to full-scale pipeline replacement as the line ages. In addition to the financial benefits of identifying alternatives for pipeline replacement, the City of San Luis Obispo’s Nacimiento pipeline is currently offline after being damaged by recent storms and flooding along the Salinas River. Taking the Whale Rock pipeline offline Packet Page #27 concurrent to the Nacimiento line being offline exposes the City and Cal Poly1 to an extended period of reliance on a single supply of water from Salinas Reservoir. The Salinas pipeline was constructed in the early 1940s and has known deficiencies that increase its likelihood of failure. The proposed alternatives study could be conducted while the Nacimiento pipeline is offline, ensuring that Whale Rock Reservoir water supply is available for Cal Poly and the City. Advertisement for Bids At the 2022 Whale Rock Commission meeting the Commission voted unanimously to allow staff to advertise for bids for this project. The Commission also voted unanimously to authorize the City Manager to award the Transmission Pipeline Repair construction project if the cost is within 15% of available project funding of $510,000 (or up to $586,500), with the 15% overage coming from Unreserved Working Capital. Since project plans were recently completed and designate a high likelihood that project costs will exceed available project funding, including the 15% buffer, staff are requesting that the Commission 1) authorize advertisement of the Dairy Creek Pipeline Repair project upon completion of the pipeline alternatives analysis, and 2) authorize the San Luis Obispo City Manager to award the project utilizing available funds from Capital Reserve Balances if within the engineer’s estimate of $1,071,000. Available Capital Reserve Balances recommended to the Commission for reprioritization as part of Agenda Item #5 amount to $844,822 and are sufficient to meet project needs. ENVIRONMENTAL REVIEW Recommendations #1 and #3 are categorically exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15302, Replacement or Reconstruction of existing structures and facilities. The pipeline being replaced will have the same purpose and will not increase capacity when replaced, regardless of replacement methodology. Recommendation #2 above is limited to completing a study of alternative pipeline replacement strategies, and therefore statutorily exempt from CEQA pursuant to State CEQA Guidelines Section 15262 (Feasibility and Planning Studies). FISCAL IMPACT Fiscal impacts related to the above action include utilization of $51,000 in project funding to study pipeline replacement alternatives. This funding was allocated as part of the 2023-24 Whale Rock Budget. 1 Pursuant to the City’s service agreement with Cal Poly, the City provides potable water to Cal Poly when the Whale Rock Reservoir Pipeline is offline. Packet Page #28 Pipeline Replacement Alternatives Study Funding Funding Category Contribution Source Amount Budgeted Amount Spent Amount Available Study 2023-24 CIP Contributions $51,000 $0 $51,000 Funding to supplement the existing project budget for construction and construction management activities are proposed to come from Capital Outlay Reserve balances for the projects identified in the table below. If these funds are not needed for this project, they will remain in the Capital Outlay Reserve account for use on the projects originally approved by the Commission. Total Capital Outlay Reserve Availability of Identified Projects Project Name Total Available Funding Pipeline Inspection and Repair Project Funds - Round #2 $494,531 Valve Replacement Project – Round #2 $99,655 Shop Pavement Replacement $20,000 Intake Valve Replacement $202,636 Boston Whaler Replacement $28,000 Total Available Funding $844,822 ALTERNATIVES Direct staff to put the Dairy Creek Pipeline Repair Project out to bid concurrent to completion of the Pipeline Replacement Alternatives study. This alternative is not recommended as staffing resources are limited and staff believe that the alternatives study may result in decreases to total pipeline replacement project costs. Staff also acknowledge that firms willing to do this work are limited and staff do not wish to request bids on this project if the project may not proceed to construction, thus compromising relations with qualified contractors. ATTACHMENTS No attachments. Packet Page #29