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HomeMy WebLinkAbout1/13/2026 Item 6i, Floyd and Boerman - Staff Agenda CorrespondenceCity of San Luis Obispo, Council Memorandum City of San Luis Obispo Council Agenda Correspondence DATE: January 13, 2026 TO: Mayor and Council FROM: Aaron Floyd – Public Works and Utilities Director Prepared By: Mychal Boerman – Utilities Deputy Director – Water VIA: Whitney McDonald, City Manager SUBJECT: ITEM 6i – APPROVAL OF A REIMBURSEMENT AGREEMENT WITH THE COUNTY OF SAN LUIS OBISPO FOR THE SALINAS DAM FEASIBILITY STUDY Staff received the following question regarding item 6i – Approval of a Reimbursement Agreement with the County of San Luis Obispo for the Salinas Dam Feasibility Study. The question is below with staff’s response shown in italics: 1) It is anticipated that the City’s portion of the study will be $396,736 with a not-to-exceed amount of $600,000 and a total City budget of $700,000. Available project budget is almost double what is needed, and $100,000 more than the City’s maximum required commitment. Can you please clarify the need to leave this full amount designated? The County, who is the lead agency for the project, anticipates that as the study commences and the consultant and stakeholders dig in into the details of dam disposition, the complexity of the project could potentially grow beyond what is currently identified by the consultant. For this reason, staff have identified the need to leave the full budget of $700,000 designated for the project, and why staff are requesting authorization for up to $600,000. Based on City staff coordination with the County, potential expansion of scope and associated costs would not be altogether unexpected on a project of this nature since disposition of a federal dam is complicated and an area in which staff do not have prior experience. If authorized by Council, any funds beyond the $396,736 would be specifically requested via a documented change order, with associated scope and budget. Upon completion of the project, the remaining balance of $100,000, or more depending on project costs, will be transferred to a “Completed Projects” account and subsequently transferred into the Water Fund’s fund balance at the closing of the fiscal year. This is the standard accounting process that is used when water projects have more project budget available than is needed after a project has been completed.