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Home My WebLink About05-02-2024 Whale Rock Commission Agenda PacketWHALE ROCK COMMISSION MEETING AGENDA Thursday, May 2, 2024 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, 2024), 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. Whale Rock Commission Meeting Agenda, May 2, 2024 3:30 PM REGULAR MEETING 990 PALM STREET CITY COUNCIL HEARING ROOM CALL TO ORDER: (City Staff) ROLL CALL: Chair Chad Worth, Vice Chair Erica A. Stewart, Secretary Whitney McDonald, Commissioner Emily Jackson, 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 2023 WHALE ROCK COMMISSION MEETING MINUTES Recommendation: Approve the Draft May 4, 2023, 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 Erica A. Stewart, Chair; Whitney McDonald, Vice-Chair; Nathan Gaughan, Commission Secretary. After the election of officers, the new Chair presides over the meeting. Recommendation: Appoint Erica A. Stewart as Commission Chair, Whitney McDonald as Commission Vice-Chair, and Nathan Gaughan as Commission Secretary. 6 11 Whale Rock Commission Meeting Agenda, May 2, 2024 PRESENTATIONS 3. 2023-24 ACCOMPLISHMENTS Receive a presentation of staff's 2023-24 accomplishments. 4. WHALE ROCK STANDBY ROTATION MODIFICATIONS Receive a presentation outlining modifications to the Whale Rock Standby rotation. BUSINESS ITEMS 5. WHALE ROCK DAM KEEPER’S RESIDANCE ADMINISTRATIVE GUIDELINES AND LEASE AGREEMENT AMENDEMENTS Receive a presentation regarding proposed modifications to the Whale Rock Residence Lease Agreement Recommendations: A.Approve modifications to the Whale Rock Dam Keeper’s Residence Guidelines; and B. Authorize the City of San Luis Obispo City Manager or his designee to approve any and all lease amendments, in accordance with the Whale Rock Dam Keeper’s Residence Guidelines. 6. FY 2022-23 FINANCIAL STATEMENTS Receive a presentation of the 2022-23 Whale Rock Financial Statements. Recommendation: Receive and File Fiscal Year 2022-23 Financial Statements. 7. 2024-25 WHALE ROCK RESERVOIR BUDGET Receive the 2024-25 Budget presentation for the Whale Rock Reservoir, including capital improvement projects (CIP) and Commission member contributions, and consider budget adoption. Recommendation: A. Adopt the 2024-25 Whale Rock Reservoir Budget. 13 14 16 20 22 Whale Rock Commission Meeting Agenda, May 2, 2024 B. Approve modification to the CIP budgeting process to establish CIP reserve accounts. 8. ADVERTISEMENT AND AWARDING OF ROADWAY PAVEMENT AND DAM CREST RESTORATION PROJECT Receive a presentation on the Roadway Paving Project Recommendations: A.Authorize staff to advertise for bids for the Roadway Paving Project and Dam Crest Restoration Project; and B. Authorize the City of San Luis Obispo City Manager to award contracts to the lowest responsible bids within the remaining project budget of $520,000 or can be supplemented through the use of Completed Projects funds. 9. ADVERTISEMENT AND AWARDING OF A REQUEST FOR PROPOSAL (RFP) FOR ADVANCED INSTRUMENTATION AT WHALE ROCK DAM Receive a presentation on Advanced Instrumentation at Whale Rock Dam. Recommendations: A. Authorize staff to advertise an RFP for the design and installation of Advanced Instrumentation at Whale Rock Dam; and B. Authorize the City of San Luis Obispo City Manager to award a contract for the selected RFP within the available project budget of $250,000. 10. ADVERTISEMENT AND AWARDING OF RFQS FOR A CONDITION STUDY AND DESIGN FOR PUMP STATION IMPROVEMENTS. Receive a presentation on Pump Station Condition Study and Optional Design of Pump Station Improvements for Whale Rock’s two pump stations. Recommendations: A. Authorize staff to advertise an RFQ for a Condition Study and Design of upgrades to the Whale Rock Pump Stations; and B. Authorize the City of San Luis Obispo City Manager to award a contract for the selected RFQ if within the available project budget of $500,000. 28 30 32 Whale Rock Commission Meeting Agenda, May 2, 2024 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 - Erica A. Stewart, City of San Luis Obispo Commission Vice Chair – Whitney McDonald, City of San Luis Obispo Commission Secretary - Nathan Gaughan, California Men's Colony Commissioner – Emily Jackson, City of San Luis Obispo Commissioner - Dane Mathis, State Department of Water Resources Whale Rock Commission Minutes Whale Rock Commission Meeting – May 2, 2024 Agenda Item 1 – Draft 2023 Whale Rock Commission Meeting Minutes FROM: Aaron Floyd, Utilities Director PREPARED BY Noah Evans, Whale Rock Reservoir Supervisor SUBJECT: Draft 2023 Whale Rock Commission Meeting Minutes RECOMMENDATION Approve the Draft May 4, 2023, Whale Rock Commission Meeting Minutes. May 4, 2023 Regular Meeting CALL TO ORDER A Regular Meeting of the Whale Rock Commission was called to order on Thursday, May 4, 2023, at 1:37 p.m. in the Council Hearing Room located at City Hall, 990 Palm Street, San Luis Obispo, by City Staff. ROLL CALL Present: Chair Emily Jackson, Vice Chair Dennis Elliot, Commissioner Derek Johnson, Commissioner Nathan Gaughan Absent: Commissioner Erica A. Stewart and Commissioner Dane Mathis Staff Present: Noah Evans, Whale Rock Supervisor; Mychal Boerman, Deputy Director-Water; Aaron Floyd, Utilities Director; Teresa Purrington, City Clerk PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA None --End of Public Comment-- CONSIDERATION OF MINUTES 1.WHALE ROCK COMMISSION MINUTES OF APRIL 21, 2022 Page 6 of 33 Minutes Whale Rock Commission Meeting – May 4, 2023 ACTION: MOTION BY COMMISSIONER JOHNSON, SECOND BY COMMISSIONER ELLIOT, 4-0-2 (Commissioner Stewart and Commissioner Mathis absent) to approve the minutes of the Regular Meeting of the Whale Rock Commission of April 21, 2022. 2.ELECTION OF OFFICERS – ANNUAL ELECTION OF THE WHALE ROCK COMMISSION CHAIR, VICE CHAIR, AND SECRETARY Recommendation: Appoint Dennis Elliot as Commission Chair, Erica A. Stewart as Commission Vice-Chair, and Derek Johnson as Commission Secretary. Johnson ACTION: MOTION BY COMMISSIONER JOHNSON, SECOND BY COMMISSIONER GAUGHAN CARRIED 4-0-2, (Commissioner Stewart and Commissioner Mathis absent) that Commissioner Elliot is appointed as Chair, Commissioner Stewart is appointed as Vice-Chair and Commissioner Johnson as Secretary. The meeting was turned over to the new Chair Elliot. PRESENTATION 3. 2022-23 ACCOMPLISHMENTS Noah Evans, Whale Rock Supervisor Provided a presentation of the 2022-23 accomplishments. Public Comments: None --End of Public Comment-- ACTION: No action taken. 4.POTENTIAL WHALE ROCK STANDBY POLICY MODIFICATION Mychal Boerman, Deputy Director of Utilities – Water presented potential modifications to the Whale Rock Standby policy. Public Comments: None --End of Public Comment-- ACTION: No action taken. BUSINESS ITEMS 5.FY 2021-22 FINANCIAL STATEMENTS Page 7 of 33 Minutes Whale Rock Commission Meeting – May 4, 2023 Tavy Garcia, Senior Accountant provided a presentation on the Fiscal Year 2021-22 Financial Statements. Public Comments: None --End of Public Comment-- ACTION: MOTION BY COMMISSIONER JOHNSON, SECOND BY CHAIR ELLIOT, 4-0-2, (Commissioner Stewart and Commissioner Mathis absent) to accept the fiscal year 2021-22 Financial Statements as presented. 6. 2023-24 WHALE ROCK RESERVOIR BUDGET 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 COMMISSIONER GAUGHAN, 4-0-2, (Commissioner Stewart and Commissioner Mathis absent) to adopt the 2023-24 Whale Rock Reservoir Budget as presented. 7.AUTHORIZE USE OF CAPITAL RESERVE BALANCES TO SUPPLEMENT SPECIFIC PROJECT BUDGETS. Mychal Boerman, Deputy Director of Utilities -Water presented the request for budgetary flexibility that will increase project delivery success and stabilize year-to- year member agency financial contributions. Public Comments: None --End of Public Comment-- ACTION: MOTION BY COMMISSIONER JACKSON, SECOND BY COMMISSION JOHNSON, 4-0-2, (Commissioner Stewart and Commissioner Mathis absent) to 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. 8.ADVERTISEMENT OF STILLING BASIN DRAIN, CLEAN, AND INSPECT PROJECT Noah Evans, Whale Rock Supervisory provided a presentation on the Stilling Basin Drain, Clean, and Inspect Project. Page 8 of 33 Minutes Whale Rock Commission Meeting – May 4, 2023 Public Comments: None --End of Public Comment-- ACTION: MOTION BY COMMISSIONER JOHNSON, SECOND BY COMMISSIONER GAUGHAN, 4-0-2, (Commissioner Stewart and Commissioner Mathis absent) to: 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. 9.DELAY ADVERTISEMENT OF TRANSMISSION PIPELINE REPAIR PROJECT Noah Evans, Whale Rock Supervisor provided a presentation detailing current pipeline repair strategies and opportunities to pursue alternative pipeline repair and rehabilitation strategies. Public Comments: Chad Worth --End of Public Comment-- ACTION: MOTION BY COMMISSIONER JOHNSON, SECOND BY CHAIR ELLIOT, 4-0-2, (Commissioner Stewart and Commissioner Mathis absent) to: 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 Page 9 of 33 Minutes Whale Rock Commission Meeting – May 4, 2023 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). COMMISSION REPORTS & COMMUNICATION Chair Elliot announced that he will be retiring in July. ADJOURNMENT Chair Elliott adjourned the meeting at 4:45 p.m. Page 10 of 33 City of San Luis Obispo, Title, Subtitle Whale Rock Commission Report Whale Rock Commission Meeting – May 2, 2024 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 Erica A. Stewart as Commission Chair, Whitney McDonald as Commission Vice Chair, and Nathan Gaughan as Commission Secretary. DISCUSSION Historically, the chair position rotates among the commissioners. At the pleasure of the commissioners, the next rotation would be Erica A. Stewart, Chair; Whitney McDonald, Vice Chair; Nathan Gaughan, 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 2025 Whale Rock Commission meeting. Future Commission Officer Rotation Schedule Year Chair Vice Chair Secretary 2023-24 (Current Year) Cal Poly Representative City of SLO Mayor City of SLO City Manager 2024-25 (Upcoming Year) City of SLO Mayor City of SLO City Manager CMC Representative 2025-26 City of SLO City Manager CMC Representative City of SLO Finance Director 2026-27 CMC Representative City of SLO Finance Director Cal Poly Representative 2027-28 City of SLO Finance Director Cal Poly Representative City of SLO Mayor 2028-29 Cal Poly Representative City of SLO Mayor City of SLO City Manager 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 Page 11 of 33 City of San Luis Obispo, Title, Subtitle Whale Rock Commission Report Whale Rock Commission Meeting – May 2, 2024 Agenda Item 2 – Election of Whale Rock Commission Officers 15278. FISCAL IMPACT This action results in no fiscal impact to the Whale Rock Commission. ALTERNATIVES The Whale Rock Commission members may elect to modify the rotation schedule for commission positions. This alternative is not recommended as the proposed rotation is consistent with the rotation previously approved by the commission at the 2023 Whale Rock Commission Meeting. ATTACHMENTS No attachments Page 12 of 33 City of San Luis Obispo, Title, Subtitle Whale Rock Commission Report Whale Rock Commission Meeting – May 2, 2024 Agenda Item 3 – 2023-24 Accomplishments FROM: Aaron Floyd, Utilities Director PREPARED BY: Noah Evans, Whale Rock Supervisor SUBJECT: 2023-24 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 2023-24 include: 1. Staff completed the Spillway Underdrain Repair Project. 2. Staff repaired a Whale Rock Pipeline failure. 3. Staff repaired an inlet pipe at Pump Station A. 4. Staff coordinated backfilling a section of exposed Whale Rock pipeline from the winter 2022-23 storms. 5. Staff participated in an arc flash analysis for the Whale Rock pump stations. 6. Staff awarded a contract to replace up to $20,000 worth of fencing at the reservoir. 7. Staff installed a lake-level reporting device. 8. Whale Rock Reservoir spilled two years in a row. A detailed presentation of the 2023-24 Whale Rock accomplishments and impacts from recent storms will be provided during the commission meeting. Completed Spillway Underdrain Repairs Page 13 of 33 Whale Rock Commission Report Whale Rock Commission Meeting – May 2, 2024 Agenda Item 4 – Potential Whale Rock Standby Policy Modification FROM: Aaron Floyd, Utilities Director PREPARED BY: Mychal Boerman, Utilities Deputy Director - Water SUBJECT: Whale Rock Standby Rotation 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 San 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. After extensive coordination with SLOCEA and Utilities Department Administration, the City came to an agreement with SLOCEA that reduced the frequency of standby shifts for water supply operator positions. These changes went into effect January 1, 2024, and will be in place for a full year as a trial to verify that these changes achieve the intended results. SLOCEA and the City will reconvene in late 2024 to discuss whether to continue with the modified standby rotation on a permanent basis. Standby Rotation Change Details Traditionally, the two water supply operator positions rotated standby on a weekly basis, resulting in each employee being on standby for 26 weeks per year. To reduce mandatory standby requirements, the new standby rotation will be broken into a four- week cycle. The four-week cycle will have one week covered by each of the two water supply operators, one week covered by the occupant of the Whale Rock dam keeper’s residence, and one week covered by a voluntary “pool shift”. The voluntary pool shift will be made available to staff from the City’s water distribution, water treatment, and water resources sections. These staff will be required to cross train at the facility and be approved by the Utilities Deputy Director – Water before being permitted to cover standby shifts. In the case that a shift cannot be covered, the coverage will be the responsibility of the Whale Rock Reservoir Supervisor. Page 14 of 33 Dam Keeper’s Residence Occupant Standby Shift Coverage During each four-week standby rotation, the occupant of the Whale Rock Dam Keeper’s residence will be required to cover a one-week standby shift. This standby shift will either be directly compensated in alignment with the SLOCEA MOA, or rent will be reduced by an equivalent dollar amount. If the Whale Rock dam keeper’s residence occupant is a management employee, the employee will not be compensated for call outs, since management employees are salaried employees who do not receive hourly compensation. However, rent reduction for occupying the residence is higher for a salaried employee than it is for an hourly employee. Pool Standby Shift Coverage During each four-week standby rotation, one standby shift will be scheduled to be covered on a voluntary basis by a pool of eligible employees. Prior to offering this shift to the standby pool, the shift will be offered to the two water supply operator positions at Whale Rock. If the shift is not covered by one of these employees on a voluntary basis, it will be offered to the standby pool. The standby pool consists of eligible employees from the Water Distribution, Water Treatment, and Water Resources sections of the City’s Utilities Department. To be eligible, an employee must receive cross training, ensuring they are able to fulfill all duties that may be required of them if covering a standby shift. Selection of coverage for the open standby shift will be made by the Utilities Deputy Director – Water, or Utilities Director. If the pool standby shift is unable to be covered by the Water Supply Operator positions or through the standby pool, the shift will be covered by the Whale Rock Supervisor. Utilization of this Pool Standby may also aid in future recruitment and succession planning of Whale Rock staff. Standby Training Details Standby training will be provided to eligible pool employees by Whale Rock staff. Employees will be required to understand and follow Standard Operating Procedures (SOPs) for the following: • Pump Station A Operation • Pump Station B Operation • Pump Station A Generator Operation • Pump Station B Generator Operation • Emergency Operations for Pipeline Failure • Dam/Spillway Emergency Action Plan (EAP) Enactment • Public Access Opening/Closure/Assistance Page 15 of 33 Whale Rock Commission Report Whale Rock Commission Meeting – May 2, 2024 Agenda Item 5 – Whale Rock Dam Keeper’s Residence Administrative Guidelines and Lease Agreement Amendments FROM: Aaron Floyd, Utilities Director PREPARED BY: Mychal Boerman, Utilities Deputy Director - Water SUBJECT: Whale Rock Dam Keeper’s Residence Administrative Guidelines and Lease Agreement Amendments RECOMMENDATION 1. Approve modifications to the Whale Rock Dam Keeper’s Residence Guidelines; and 2. Authorize the City of San Luis Obispo City Manager or his designee to approve any and all lease amendments, in accordance with the Whale Rock Dam Keeper’s Residence Guidelines. DISCUSSION The Dam Keeper’s residence at Whale Rock Reservoir was built in the 1920s and was actively used until 1991. It is a 1,080 square feet, 3-bedroom, 2-bath house on approximately 2 acres that also houses the Whale Rock Reservoir Shop. In 2015, the Whale Rock Commission approved the renovation of the building in order to use it again as a dam keeper’s residence in order to have on-site security at the dam. At the May 18, 2016 Whale Rock Commission Meeting the Commission approved the occupancy of the Whale Rock Dam Keeper’s Residence alongside adoption of administrative guidelines which included the approval of a rental pricing strategy. The Commission also approved the rental agreement with the current tenant of the residence. Since this time, the Utilities Department has identified the need for modifications to the administrative guidelines which are used to develop the details of the lease and the monthly rental cost calculation. Much of this has been triggered by changes to the SLOCEA MOA related to Whale Rock standby coverage but other necessary changes have been identified with the intent of protecting the Whale Rock Commission from potential liability and more clearly defining areas subject the lease versus those associated with reservoir operations. Like many similar facilities across the country, Whale Rock Reservoir is located in a remote area. Currently, staff are at the facility Monday through Friday, 7:00 AM to 4:30 PM. After-hours and weekends are covered through stand-by assignments. However, in case of an emergency, it takes staff 30 minutes to reach the dam location to respond. Housing a dam keeper on site allows for emergency response to dam safety and infrastructure failure or malfunction, after-hour water delivery to Commission members, after-hour security to discourage illegal entry to areas not safe Page 16 of 33 for the public, operational assistance during off-hours, quick response to any type of emergency on the premises. Administrative Guideline Modifications The Whale Rock Dam Keeper’s Residence Administrative Guidelines are designed to inform the contents of the Whale Rock Residence Lease Agreement. These guidelines include details related to the following: 1. Occupancy Criteria 2. Responsibilities of the Occupant/Tenant 3. Methodology for Determining Monthly Rent 4. Landlord and Resident Rights and Responsibilities 5. Relocation Rights While there are several minor changes to provide clarity and understanding when drafting a lease agreement, several major changes should be noted by the Whale Rock Commission. Significant changes are outlined as follows: 1. Modifications to Occupation Criteria a. Job classifications eligible to occupy the Whale Rock Residence have been expanded to include all employees paid for by the City’s Whale Rock Fund or Water Fund. b. A map was added that clearly designates locations of the facility that are subject to the lease. 2. Modifications to Tenant/Occupant Responsibilities a. Language was added that would require that the resident employee, as a requirement of the lease, cover one standby shift per four-week period, in accordance with the SLOCEA MOU side letter outlining modifications to standby shift rotation. This shift would be in addition to standby shift coverage requirements that are part of the employee’s regular duties if the employee is a Water Supply Operator. b. Language was added to require liability waivers for all guests that access areas of the facility not outlined in Exhibit A, that are not otherwise accessible to the public. c. Language was added that requires the tenant to accompany all guests that are accessing areas of the facility that are not outlined in Exhibit A, that are not otherwise open to the public. d. A map was added clearly defining areas that are included in the lease and subject to the care of the tenant. 3. Modifications to the Methodology for Determining Monthly Rent a. Existing methodology that bases fair market value housing assessments off of Housing Authority of San Luis Obispo (HASLO). This methodology is proposed to be replaced with a methodology that would utilize the Housing and Urban Development (HUD) USER Fair Page 17 of 33 Market Documentation System. This replacement is recommended to be used due to its ease of administration. b. If a SLOCEA (non-salaried) employee is on standby and work called out, this employee will receive a minimum of two-hour hours of compensation for this call out. Due to this added compensation, and the fact that management employees are not compensated for call-backs when on standby, it is being recommended that rent reduction be at a rate of 66% for management employees and 50% for non management employees. Existing language specifies that the rent reduction will be 66% for all employee classifications. c. Modifications are being recommended that clarify that if occupied by a management employee, rent shall be reduced by the current compensation for one single standby shift per month, as outlined in the SLOCEA MOA. If occupied by a SLOCEA employee, the employee shall be directly compensated for standby coverage and the employee shall not receive a rent reduction associated with standby coverage. Authorization of City Manager to Approve Lease Amendments In order to expedite lease amendments and executions, staff is requesting that the Commission authorize the City of San Luis Obispo City Manager or his designee to approve any and all lease amendments, in accordance with the Whale Rock Dam Keeper’s Residence Guidelines. This recommendation is intended to clearly identify that the City Manager has the authority to execute these agreements without review by the Whale Rock Commission, granted they are in alignment with established guidelines. 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. FISCAL IMPACT This action may result in the commission collecting additional revenue of approximately $300 per month due to rent increasing to be in alignment with HUD rental cost calculations. ALTERNATIVES The Whale Rock Commission members may elect not to modify the existing guidelines for residency and/or may elect to not authorize the City Manager to approve lease amendments. This alternative is not recommended as the proposed actions provide needed clarity to the lease guidelines, which will ultimately be utilized to update lease criteria. The action also allows the City Manager to approve lease amendments, allowing the terms of the lease to be amended without scheduling a commission meeting. Page 18 of 33 ATTACHMENTS: A - Whale Rock Dam Keeper’s Residence Administrative Guidelines (Redlined Version) Page 19 of 33 Whale Rock Commission Report Whale Rock Commission Meeting – May 2, 2024 Agenda Item 6 – FY 2022-23 Financial Statements FROM: Aaron Floyd, Utilities Director PREPARED BY: Mychal Boerman, Utilities Deputy Director – Water Tavy Garcia – Senior Accountant SUBJECT: FY 2022-23 Financial Statements RECOMMENDATION Receive and file Fiscal Year 2022-23 Whale Rock Financial Statements DISCUSSION Summary 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 2022-23 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 39-42). The City’s finance department will work to correct these two issues over the next year. The Whale Rock Commission 2022-23 Financial Statements, as well as the auditor’s reports, are provided in the attachment section of this report. 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. Page 20 of 33 FISCAL IMPACT The proposed action would not result in fiscal impacts to the Whale Rock Commission member agencies. ALTERNATIVES The commission could choose to request modifications to the financial statements if an error is identified with the statements included in Attachment A. ATTACHMENT A - FY 2022-23 Audited Financial Statements B – Auditor’s Communication with those Charged with Governance Page 21 of 33 Whale Rock Commission Report Whale Rock Commission Meeting – May 2 2024 Agenda Item 7 – 2024-25 Whale Rock Reservoir Budget FROM: Aaron Floyd, Utilities Director PREPARED BY: Shane Whittington, Utilities Business Manager SUBJECT: 2024-25 Whale Rock Reservoir Budget RECOMMENDATION A. Adopt the 2024-25 Whale Rock Reservoir Budget; and B. Approve modification to the CIP budgeting process to establish CIP reserve accounts. DISCUSSION Summary Pursuant to the Supplemental Agreement for the Construction and Operation of the Whale Rock Project, San Luis Obispo County (February 1961), the Whale Rock Commission has the powers and duties to consider and approve the annual budget (Attachment E - Section C3). In alignment with this agreement, staff have developed a proposed budget and proposed member agency contributions that considers Operating, Salaries and Benefits, Capital, and Electrical Pumping expenditures. These member agency contributions are summarized in the tables below. Table 1 – 2024-25 Agency Contributions City of San Luis Obispo (55.05%) Cal Poly State University (33.71%) California Men’s Colony (11.24%) Total Contribution $1,181,688 $723,610 $241,275 O&M Allocation $721,170 $441,610 $147,247 CIP Contribution $402,694 $246,591 $82,221 Table 2 – 2024-25 Forecasted Pumping Charges City of San Luis Obispo (1,500 AF) Cal Poly State University (1,200 AF) California Men’s Colony (535 AF) Forecasted Pumping Charges $352,500 $282,000 $125,725 The next sections describe the detailed budgets from which the recommendations above are derived. Additional sections on significant operating budget changes that staff are recommending and capital reserve recommendations are also included. Page 22 of 33 Detailed Budgets Table 3 contains totals for the budget organized by cost categories and subcategories. Table 3 – Detailed Budgets 2023-24 Adopted Budget 2024-25 Proposed Budget 2025-26 Forecasted Budget Capital Asset Expense $4,723,302 $731,506 $904,029 Capital Expenses $214,167 $1,236,506 $2,359,029 Legacy Projects $1,986,453 Capital Reserves $2,522,682 $(505,000) $(1,455,000) Salaries and Benefits $681,107 $706,958 $728,741 Salaries $484,777 $504,086 $519,208 Benefits $196,331 $202,873 $209,873 Operating Budget $1,104,008 $1,370,294 $1,325,925 Office Expenses $2,000 $2,000 $2,060 Operating Materials and Supplies $92,950 $93,100 $97,027 Services and Supplies $164,726 $194,980 $200,489 Travel, Meeting, and Dues $8,200 $9,350 $9,631 Utilities – Electrical Pumping $535,400 $760,225 $668,434 Utilities – Other $26,360 $28,036 $29,130 General Government $274,372 $282,603 $324,994 Revenues $2,479,066 $2,808,758 $2,958,695 Charges for Services $2,472,066 $2,801,758 $2,951,695 Other Government Revenue $7,000 $7,000 $7,000 Net Revenue (Revenue minus Expenditures) ($4,029,351) $0 $0 Tables including descriptions of the subcategories, more granular budget data, and detailed capital projects forecasts are included as attachments A, B, and C. Additionally, representatives from each member agency were granted access to the Whale Rock Fund Analysis. A copy of the Whale Rock Fund Analysis is included as attachment D. Significant Operating Changes There are seven significant operating changes that staff are recommending with impacts on the Whale Rock Reservoir budget. These are as follows: 1. Addition of $15,000 for ongoing, non-member legal representation. Staff are recommending outsourcing legal services. In prior years, the City Attorney’s Office has provided legal counsel for Whale Rock Reservoir operations. While the working relationship between members of the Whale Rock Commission are cooperative and transparent, the legal representation being predominated by only one of the major Commission members could result in a conflict of interest should there ever be an internal dispute amongst member agencies. By adding budget for third-party legal services, staff can ensure that unbiased Page 23 of 33 legal representation and protections are provided to all Commission members. Staff are recommending an annual legal services budget of $15,000 to hire a third-party legal firm to represent the Whale Rock Commission. 2. Increase from $20,000 to $30,000 for emergency pipeline repairs and move funds from operating budget to capital budget. A $10,000 increase in the major leak repair budget is being recommended to ensure staff have sufficient budget to address leaks that occur along the main raw water line. Historically, expenses greater than the $20,000 budget pulled from other operating budget or major maintenance accounts. This takes away from resources that are necessary for long-term operational success of the Whale Rock Reservoir. Staff are recommending the annual budget be increased from of $20,000 to $30,000 and that the budget be moved from the operating budget to the CIP budget. 3. Increase from $20,000 to $60,000 for machinery and equipment. The machinery and equipment account pays for assets like the master meter ($13,000), electrical breakers for the master meter vault ($8,100), and electric motor rebuilds ($7,500). Staff are recommending increasing this budget from $20,000 to $60,000 on an ongoing basis to keep pace with escalating costs in these areas. In 2023-24, the Whale Rock Commission approved an identical budget increase from $20,000 to $60,000. Staff are requesting this budget increase again to be transparent that this budget increase will be an ongoing expense for Whale Rock Reservoir operations. 4. Reduction of the Whale Rock Pump Station project from $1,960,620 to $500,000 for study and design in 2024-25. Addition of $2,000,000 for the Whale Rock Pump Station project for construction in 2025-26. Staff are recommending shifting funding requests for the Whale Rock Pump Station project (Item 10). Due to the timing of the project, staff do not anticipate being able to begin construction in 2024-25. Consequently, staff are reducing the 2024-25 funding request from $1,960,620 to $500,000 to only fund study and design. Staff are forecasting needing $2,000,000 in 2025-26 for construction of this project due to escalating construction costs and an expanded scope of items to be considered within the upgrade. 5. Addition of $414,960 for the Roadway Pavement project in 2024-25. Staff are requesting an additional $414,960 for the Roadway Pavement project (Item 8) due to escalating costs. This project is to rehabilitate the pavement from the Whale Rock Office up the east side of the dam. This project will allow staff to access the dam more effectively and safely for operational and monitoring activities. 6. Increase from $108,923 to $250,000 for the Advanced Instrumentation and Safety Monitoring project in 2024-25. an increase in budget for Advanced Page 24 of 33 Instrumentation and Safety Monitoring is being requested (Item 9). This includes a one-time increase from $108,923 to $250,000 for monitoring devices. The addition of this budget for real time monitoring devices would allow staff to better identify potential issues, allocate staff hours, and do targeted maintenance on critical pieces of infrastructure. Increased funding will also allow staff to comply with changing regulatory requirements associated with dam safety. 7. Reduction of capital reserves by $505,000 in 2024-25 (proposed) and $1,455,000 in 2025-26 (forecasted) to be used for planned capital expenses. Staff are implementing an administrative change in how capital reserves are managed. Capital reserves were established as part of the Whale Rock Commission conducted on May 7, 2015. The intent was to smooth the capital contributions that Whale Rock Commission Members made on an annual basis. Staff previously calculated out the forecasted reserves needed and automatically allocated these amounts to project budgets in the fiscal years that those budgets were intended to be delivered. Because this process did not consider project deferrals, inflation, or variable contributions by Commission Members, this process is administratively burdensome. Moving forward staff will still make recommendations on contributions and capital reserve funded projects, and instead of automatically allocating project budgets, staff would seek authorization at the annual Whale Rock Commission meetings to both allocate from and contribute to capital reserves. The fiscal impact would vary based on staff recommendations, but the recommendation for 2024-25 is a $505,000 reduction in capital reserves between all Whale Rock Commission members. Staff will evaluate capital reserve levels annually to determine if the annual contribution amounts are sufficient. Capital reserve balances and recommendations are outlined in more detail in the next section. Capital Reserve Balances and Recommendations Capital reserve balance and staff recommendations for capital reserves in 2024-25 are outlined in Table 4. These recommendations will be reviewed annually to ensure that reserve balances are sufficient to cover capital needs. Staff are recommending utilizing $505,000 from capital reserves for projects in 2024-25. The reserve utilization is to offset the anticipated capital expenses at $1,236,506. This greater than average capital expense is related to the Roadway Pavement ($414,960) and the Whale Rock Pump Stations ($500,000) projects. Table 4 – Capital Reserves and Recommendations City of San Luis Obispo (55.05%) Cal Poly State University (33.71%) California Men’s Colony (11.24%) 2023-24 Capital Reserve Balance $1,467,757 $755,241 $299,684 2024-25 Capital Reserve Utilization $278,003 $170,236 $56,762 Page 25 of 33 2024-25 Capital Reserve Balance $1,189,754 $585,005 $242,922 This would result in the net capital contributions for 2024-25 outlined in Table 5. Table 5 – Net Capital Contributions City of San Luis Obispo (55.05%) Cal Poly State University (33.71%) California Men’s Colony (11.24%) 2024-25 Net Capital Contributions $402,694 $246,591 $82,221 Staff are forecasting additional utilization of $1,455,000 in capital reserves in 2025- 26 and contributions of $345,000 in 2026-27. The 2026-27 contribution amount is based on an inflation-adjusted and weighted average of eight (8) years of actual budgets and two (2) years of forecasted budget. This methodology would enable staff to do one large project commensurate to the Whale Rock Pump Station Electrical Repairs (A and B) every 10 years, while smoothing agency contributions. Staff will evaluate capital reserve levels and contributions on an annual basis to reassess for sufficiency. Staff will continue to research best practices relative to capital reserve levels and will present finding to the Whale Rock Commission at a future meeting. Agency Contributions The Whale Rock Commission members’ contributions are summarized in Table 1 and Table 2. The largest expenditure increases, relative to the previous year, are primarily related to the Roadway Pavement and Whale Rock Pump Station projects. A year-over-year summary of Whale Rock Commission members’ contributions are included in Table 6. Table 6 – Year-Over- Year Agency Contributions 2022-23 Actual Contributions 2023-24 Adopted Budget 2024-25 Proposed Budget City of San Luis Obispo (55.05%) $1,256,803 $1,202,058 $1,534,188 O&M Allocation $620,372 $684,116 $721,170 CIP Contribution $403,920 $339,862 $460,518 Pumping Charges $232,511 $178,080 $352,500 Cal Poly Stat University (33.71%) $846,594 $952,015 $1,005,610 O&M Allocation $379,886 $418,920 $441,610 CIP Contribution $323,920 $284,695 $282,000 Pumping Charges $142,788 $248,400 $282,000 California Men’s Colony (11.24%) $221,049 $317,994 $367,000 Page 26 of 33 O&M Allocation $126,666 $139,681 $147,247 CIP Contribution $84,472 $69,393 $94,028 Pumping Charges $9,911 $108,920 $125,725 Total Member Contributions $2,324,446 $2,472,067 $2,906,798 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 – Descriptions of Account Subcategories B – Detailed Budgets (Account Level Detail) C – Capital Project Forecast D – Whale Rock Fund Analysis E – Supplemental Agreement for the Construction and Operation of the Whale Rock Project, San Luis Obispo County (February 1961) Page 27 of 33 Whale Rock Commission Report Whale Rock Commission Meeting – May 2, 2024 Agenda Item 8 – Advertisement and Awarding of Roadway Pavement and Dam Crest Restoration Project FROM: Aaron Floyd, Utilities Director PREPARED BY: Mychal Boerman, Utilities Deputy Director - Water Noah Evans, Whale Rock Reservoir Supervisor SUBJECT: ADVERTISEMENT AND AWARDING OF ROADWAY PAVEMENT AND DAM CREST RESTORATION PROJECT RECOMMENDATIONS A. Authorize staff to advertise for bids for the Roadway Paving and Dam Crest Restoration Project; and B. Authorize the City of San Luis Obispo City Manager to award the contract to the lowest responsible bidder if the bid is within the remaining project budget of $520,000 or can be supplemented through the use of Completed Projects funds. DISCUSSION Background Whale Rock Dam has an access roadway that begins near the Whale Rock Office and continues towards and up the east side of the dam. The portion of the road accessing the dam's crest is steep and paved. The paved road allows staff to drive to the dam's crest to conduct monitoring and operational activities at any time of the year. Access to the dam's crest allows staff to reach assets on and near the dam that monitor the dam’s performance and control from what depth water is delivered to Whale Rock Commission members. The existing pavement has had repairs to extend the roadways' utility in the past. Even though the roadway has been repaired, the roadway is in poor condition and needs to be repaved to maintain all-weather access to the dam's crest and to protect the dam face from erosion from the nearby hillside. Whale Rock Dam was designed and constructed to achieve a specific elevation and to provide vehicle access to the structure. Since the dam was completed in 1961, the dam crest has not maintained the design elevation. Over the years additional road base material has been applied on the dam's crest to allow vehicle access during the rainy season and to maintain the dam’s design elevation. Restoring the dam’s crest with road base material will maintain wet weather access and restore the design elevation of Whale Rock Dam. WHALE ROCK DAM’S ROADWAY Page 28 of 33 ENVIRONMENTAL REVIEW The recommendations proposed to the Commission 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. Whale Rock Dam roadway Paving and restoring the dam’s crest will have the same purpose as the existing pavement and dam crest and will not alter the Reservoir’s capacity. FISCAL IMPACT Roadway Pavement and Dam Crest Restoration at Whale Rock Dam Funding Category Contribution Source Amount Budgeted Amount Spent Capital Asset Expense 2024-25 CIP Contributions $534,960 $14,960 The cost of this project is recommended to be partially offset by Capital Reserves as specified in Item 7 - 2024-25 Whale Rock Reservoir Budget. ALTERNATIVES Direct staff to not pave the dam access roadway and continue using the existing dam access roadway pavement to access the crest of the Dam and direct staff not to restore the dam’s crest to design elevation. Staff does not recommend this alternative as continued roadway degradation will make accessing the crest of the Dam difficult during the wet season and restoration of the dam’s crest provides wet weather access and restores the dam’s original elevation. ATTACHMENTS No attachments. Page 29 of 33 Whale Rock Commission Report Whale Rock Commission Meeting – May 2, 2024 Agenda Item 9 – Advertisement and Awarding of RFP for Advanced Instrumentation at Whale Rock Dam FROM: Aaron Floyd, Utilities Director PREPARED BY: Mychal Boerman, Utilities Deputy Director - Water Noah Evans, Whale Rock Reservoir Supervisor SUBJECT: ADVERTISEMENT AND AWARDING OF A REQUEST FOR PROPOSAL (RFP) FOR ADVANCED INSTRUMENTATION AT WHALE ROCK DAM RECOMMENDATIONS A.Authorize staff to advertise a Request for Proposal (RFP) for the design and installation of advanced instrumentation at Whale Rock Dam. B.Authorize the City of San Luis Obispo City Manager to award a contract for the selected RFP within the available project budget of $250,000. DISCUSSION Background During the construction of Whale Rock Dam (1958-1961), pneumatic piezometers were installed in the dam embankment and foundation to provide information on water saturation within the dam’s earthen structure. Twelve open tube piezometers were installed in the 1980s to provide additional monitoring of the Dam’s condition. Staff collect and record data from the piezometers weekly and provide this data to the Commission’s geologic consultant, Converse Consulting. The analysis of the piezometer information contributes to the Division of Safety of Dams’ approval for continued dam operations. Gathering and compiling piezometer data requires two to three hours weekly, and piezometer data is analyzed after the readings are taken. Advanced Instrumentation will provide piezometer data in real time. Real time data will allow staff to analyze the performance of the dam daily. Advanced instrumentation will include alarms that will inform staff of changing conditions as they are happening, allowing staff ample time to address issues before an emergency situation develops. Modern technology has fostered the development of advanced instrumentation systems that collect, transmit, and display piezometer information to a local computer in real time. The real-time piezometer information display has alarming capabilities ADVANCED INSTRUMENTATION DIAGRAM Page 30 of 33 that can notify staff of a change in condition requiring further observation. The advanced instrumentation system will also measure and display the temperature of the piezometer's location, as a temperature change can indicate a change in conditions that should be monitored. Installing an advanced instrumentation system at Whale Rock Dam will provide real-time performance monitoring of the dam, with alarming capabilities and digital logging of piezometer information. The Advanced Instrumentation system envisioned by staff will be solar-powered and use cellular or radio transmission to relay piezometer information to the Whale Rock Office. The system will also transmit and record real-time information from Whale Rocks' two weather stations, improving understanding of rain amounts and lake inflows, while reducing staff time spent collecting weather station data. Advanced Instrumentation will provide additional tools to monitor the dam's current condition, increasing staff’s understanding of the dam’s performance and reducing the time staff spend manually collecting data every day. ENVIRONMENTAL REVIEW The proposed recommendations 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. Installing Advanced Instrumentation at Whale Rock Dam will have the same purpose as the existing piezometer and weather station systems and will not alter the Reservoir’s capacity or operation. FISCAL IMPACT Advanced Instrumentation at Whale Rock Dam Funding Category Contribution Source Amount Budgeted Amount Spent Capital Asset Expense 2024-25 CIP Contributions $250,000 $0 The cost of this project is recommended to be partially offset by Capital Reserves as specified in Item 7 - 2024-25 Whale Rock Reservoir Budget. ALTERNATIVES Direct staff to continue manually collecting and categorizing piezometer and weather station information using the existing systems. This alternative is not recommended as advanced instrumentation at Whale Rock Dam will improve monitoring of the dam’s real-time condition, provide alarming capabilities, and record piezometer and weather station information, reducing staff time spent manually reading and recording instrument information. ATTACHMENTS No attachments. Page 31 of 33 Whale Rock Commission Report Whale Rock Commission Meeting – May 2, 2024 Agenda Item 10 – Advertisement and Awarding of RFQS for a Condition Study and Design for Pump Station Improvements. FROM: Aaron Floyd, Utilities Director PREPARED BY: Mychal Boerman, Utilities Deputy Director - Water Noah Evans, Whale Rock Reservoir Supervisor SUBJECT: ADVERTISEMENT AND AWARDING OF RFQS FOR A CONDITION STUDY AND DESIGN FOR PUMP STATION IMPROVEMENTS. RECOMMENDATIONS A. Authorize staff to advertise an RFQ for a Condition Study and Design of upgrades to the Whale Rock Pump Stations; and B. Authorize the City of San Luis Obispo City Manager to award a contract for the selected RFQ if within the available project budget of $500,000. DISCUSSION Background Whale Rock Reservoir uses two pump stations, originally completed in 1961, to deliver water to Whale Rock Commission members (WRCM). Since 1961, multiple pump station improvement projects have been constructed, with the most recent improvements being constructed in 1993. The 1993 upgrade was extensive, including building the existing masonry block buildings, adding two pumps to each station, upgrading electrical systems, and installing diesel-powered generators designed to power one pump at each pump station. The motor control centers (MCCs) that control the pumps have been in service for over thirty years and need replacement to ensure reliable water deliveries to WRCM. The pump station roofs, pavement, and fencing need to be improved as these assets are at least thirty years old, and the fencing is sixty-three years old. The generator at Pump Station A failed, and a portable generator has been on loan from the City of San Luis Obispo for the past five years to provide power to Pump Station A when PG&E is unavailable. Staff believe advancements in MCC, electric motors, and generators will benefit the WRCM in multiple ways. Improving the MCCs will allow for soft pump starts and Pump Station A Page 32 of 33 stops, reducing stress on the Whale Rock Pipeline and reducing the likelihood of pipeline failures. Improved MCCs will allow for variable pumping flow rates, allowing staff to meet requested water delivery rates more effectively and optimizing electrical expenditures. Improved generators will be sized to power more than one pump at each station to meet the water delivery needs of WRCM during a power outage. The goal of the condition study is for a consulting firm experienced in pump station design and upgrades to inform staff of Pump Station improvements that will improve the Whale Rock water delivery system's function, reliability, and reduce life cycle costs. The results of the condition study will form the basis for designing the improvements to the pump stations. ENVIRONMENTAL REVIEW This project is 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 Condition Study and Design of Improvements to the two Whale Rock pump stations will have the same purpose as the existing pump stations system and will not alter the Reservoir’s capacity. Specific analysis may be required for pump station upgrades depending on the recommendations of the study and design. FISCAL IMPACT RFQ for Study and Design of Whale Rock Pump Station Improvements Funding Category Contribution Source Amount Budgeted Amount Spent Capital Asset Expense 2024-25 CIP Contributions $500,00 $0 The cost of this project is recommended to be partially offset by Capital Reserves as specified in Item 7 - 2024-25 Whale Rock Reservoir Budget. ALTERNATIVES Direct staff not to advertise an RFQ for condition study and design for pump station improvements. Direct staff to continue delivering water to Whale Rock Commission Members using the existing pump station equipment. Staff do not recommend this alternative as a condition study and design for pump station improvements will assist in the future construction of pump station improvements that will reduce stress to the Whale Rock Pipeline, meet water delivery requests, and allow for multiple pumps to be operated by generator power. ATTACHMENTS No attachments. Page 33 of 33