HomeMy WebLinkAboutR-11621 approving a reimbursement agreement with the San Luis Obispo County Flood Control and WaterR 11621
RESOLUTION NO. 11621 (2026 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING A REIMBURSEMENT
AGREEMENT WITH THE SAN LUIS OBISPO COUNTY FLOOD
CONTROL AND WATER CONSERVATION DISTRICT TO SUPPORT
THE SALINAS DAM FEASIBILITY STUDY
WHEREAS, the Salinas Dam is owned by the United States Army Corps of
Engineers (USACE); and
WHEREAS, the USACE leases the Dam to the San Luis Obispo County Flood
Control and Water Conservation District (District) for its operation, maintenance, and
delivery of water to the City; and
WHEREAS, the USACE is undertaking a federal disposition process evaluating
options for divestiture of the Salinas Dam, including potential transfer of ownership to a
local public agency; and
WHEREAS, the State of California has allocated $500,000 through Assembly Bill
102 to partially fund a Salinas Dam Feasibility Study to assess engineering, regulatory,
seismic, environmental, and governance considerations needed to inform any future
ownership decision; and
WHEREAS, following a competitive procurement process, the District has selected
Tetra Tech BAS, Inc. to conduct the Feasibility Study; and the District will enter into a
Professional Services Agreement not to exceed $1,293,472, inclusive of contingency; and
WHEREAS, the Feasibility Study is expected to benefit both the District and the
City by evaluating Dam condition, retrofit options, reservoir capacity, seismic and geologic
requirements, regulatory pathways, water rights implications, and long -term operational
responsibilities, thereby informing regional water supply reliability planning; and
WHEREAS, the District and City desire to jointly fund the remaining cost of the
Feasibility Study after the State allocation is fully expended; and
WHEREAS, under the proposed Funding Agreement, the City will reimburse the
District for 50% of the remaining consultant costs after the State’s $500,000 contribution
is exhausted, not to exceed a maximum City contribution of $600,000; and
WHEREAS, approval of the Funding Agreement is necessary for the City to
participate as a partner in the Feasibility Study and secure access to all consultant work
products, technical analyses, stakeholder engagement activities, and recommendations
regarding the Dam’s future.
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NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. The City Council hereby approves the Funding Agreement between
the City of San Luis Obispo and the San Luis Obispo County Flood Control and Water
Conservation District for the Salinas Dam Feasibility Study, attached hereto as Exhibit 1
and incorporated herein by reference.
SECTION 2. The City Council authorizes the City Manager, or designee, to
execute the Funding Agreement (Exhibit 1) and to take any administrative actions
necessary to implement the Agreement consistent with its terms.
SECTION 3. The City Council authorizes the City Manager, or designee, to
prepare and submit payments to the District in accordance with the Funding Agreement,
including reimbursement of 50% of eligible consultant costs after the State’s allocation
has been expended, not to exceed a total City contribution of $600,000.
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SECTION 3. Environmental Review. The action is statutorily exempt from the
California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section
15262 (Planning and Feasibility Studies) as it involves a cost-sharing agreement for a
feasibility and planning study with no direct physical impact. Approval of the Agreement
and the County’s implementation of the feasibility study does not commit the City to any
future action or project. Any future actions regarding Dam ownership, design, or
construction would require compliance with CEQA.
Upon motion of Vice Mayor Francis, seconded by Council Member Boswell, and
on the following roll call vote:
AYES: Council Member Boswell, Marx, Shoresman, Vice Mayor
Shoresman, and Mayor Stewart
NOES: None
ABSENT: None
The foregoing resolution was adopted this 13th day of January 2026.
___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
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EXHIBIT 1
Reimbursement Agreement
Salinas Dam Feasibility Study
This Reimbursement Agreement (“Agreement”) is made on this ____ day of _______,
2025 by and between the San Luis Obispo County Flood Control and Water Conservation
District (“District”) and the City of San Luis Obispo (“City”), collectively referred to herein as
the “Parties”.
RECITALS
WHEREAS, the U.S. Army Corps of Engineers (“USACE”) owns the Salinas Dam
(“Dam”) and jointly holds water rights permits with the City; and
WHEREAS, the USACE leases the Dam to the District for its operation and
maintenance, which includes water delivery to the City; and
WHEREAS, the USACE has been evaluating options for disposal of the Dam, including
transferring ownership to a local agency such as the District; and
WHEREAS, said transfer is an opportunity to secure existing and/or additional water
supplies to address needs in the County of San Luis Obispo; and
WHEREAS, to evaluate the transfer, a feasibility analysis of dam ownership, condition,
and retrofit/improvement (“Feasibility Study”) would be required; and
WHEREAS, the State of California has provided a grant to the District in the amount of
$500,000 (“State Grant”) to partially fund the Feasibility Study;
WHEREAS, after a competitive procurement process, the District has tentatively
selected Tetra Tech BAS, Inc. (“Consultant”) to perform the Feasibility Study and enter into an
Agreement for Professional Services (“Consultant Contract”) with the Consultant, attached
hereto as Exhibit “A” and incorporated by this reference; and
WHEREAS, the District and the City have a common interest in the performance of the
Feasibility Study and desire to jointly contribute the additional funding necessary for the
completion of the work.
NOW, THEREFORE, it is hereby mutually agreed by the Agencies and District as
follows:
1. The above recitals are true and correct and are incorporated herein by this
reference.
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2. Prior to the payment of any funds by the City, the District shall expend the State
Grant, in a manner consistent with the terms of the grant, to pay invoices received
from the Consultant.
3. Once the State Grant is fully expended, the City shall pay the District a sum equal
to fifty (50%) of the costs of each remaining invoice from the Consultant. The
City shall make said payment within thirty (30) days of the receipt of each invoice
from the District.
4. Notwithstanding Paragraph 3 above, the City’s payment obligation pursuant to
this Agreement shall not exceed six hundred thousand dollars ($600,000) unless
otherwise agreed by the Parties in writing.
5. Nothing herein shall be interpreted to create a contractual relationship between
the Consultant and the City, nor to obligate or subject the City to any of the terms
of the Consultant Agreement.
6. The District’s contract with the Contractor require the Contractor to maintain
accounting records for contract billings, a monthly detailed statement of all
services performed to be billed at rates set forth in the Consultant’s Cost Proposal,
and a requirement to repay any disallowed costs in Articles 3 and 4 of Exhibit A.
The District and City have a common interest in ensuring that all billings for
services provided are accurate and in accordance with approved work and
services.
7. This Agreement has been executed and delivered in, and shall be interpreted,
construed, and enforced pursuant to and in accordance with the laws of the State
of California. All duties and obligations of the parties created hereunder are
performable in the County of San Luis Obispo; and such County shall be that
venue for any action or proceeding that may be brought or arise out of, in
connection with, or by reason of, this Agreement.
8. If any term, covenant, condition, or provision of this Agreement is held by a court
of competent jurisdiction to be invalid, void, or unenforceable, the remainder of
the provisions hereof shall remain in full force and effect and shall in no way be
affected, impaired, or invalidated thereby. 5.
9. Unless otherwise provided, all notices herein required shall be in writing, and
delivered in person or sent by United States first class mail, postage prepaid.
Notices required to be given to County shall be addressed as follows:
Department of Public Works
Attn: Public Works Director
976 Osos Street STE 207 San Luis Obispo, CA 93408
Notices required to be given to City shall be addressed as follows:
City of San Luis Obispo
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Attn: Utilities Director
879 Morro Street
San Luis Obispo, CA 93401
10. This Agreement is intended by the parties as a final expression of their
understanding with respect to the matters contained herein and is a complete and
exclusive statement of the terms and conditions thereof
11. The parties acknowledge that each party and its attorneys have reviewed,
negotiated and revised this Agreement; and that the normal rule of construction to
the effect that any ambiguities are to be resolved against the drafting party shall
not be employed in the interpretation of this Agreement or any document
executed and delivered by any party in connection with the transactions
contemplated by this Agreement
12. This Agreement shall not be changed or modified except upon written consent of
all of the Parties.
13. This Agreement may be executed in counterparts, each of which shall be deemed
an original and all of which shall constitute a single instrument. Signature pages
may be detached from individual counterparts and attached to a single or multiple
original(s) in order to form a single or multiple originals of this Agreement.
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IN WITNESS WHEREOF, the City has executed this Agreement with the approval of
its governing body, and District has executed this Agreement in accordance with the
authorization of the Board of Supervisors.
City of San Luis Obispo
By:
Date: , 20____
APPROVED AS TO FORM AND LEGAL EFFECT:
J. CHRISTINE DIETRICK
City Attorney
By:
Date: , 20____
SAN LUIS OBISPO COUNTY FLOOD CONTROL AND
WATER CONSERVATION DISTRICT
By:
Date: , 20____
APPROVED AS TO FORM AND LEGAL EFFECT:
JON ANSOLABEHERE
County Counsel
By:
Deputy County Counsel
Date: , 20____
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