HomeMy WebLinkAbout06/07/1994, C-10 - WHALE ROCK COMMISSION MEETING, JUNE 23, 1994 IIIII�I ��IIIIIII��i III MEETING DATE:
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cityof san LLIis oBispo June 7, 1994
COUNCIL AGENDA REPORT ITEM NUMBER:
FROM: John Moss 4pk Prepared By: Gary W. Henderson Gv►+
Utilities D ector Water Division Manager
SUBJECT: Whale Rock Commission Meeting, June 23, 1994
CAO RECOMMENDATION:
Receive and file. Comment if necessary to provide direction to City representatives/staff.
DISCUSSION:
The Whale Rock Commission's annual meeting on June 23, 1994 will address the following key
items:
3. Approval of the Annual Budget and Financial Statement - The only significant
expenditure increase involves the sanitary survey of the reservoir which must be
completed by January 1996 per the requirements of the Surface Water Treatment
Rule. This item is estimated to cost $30,000 and will be funded from existing
fund balance.
4. Adoption of City Financial, Purchasing and Policy Procedures - Commission staff
recommends that the Whale Rock Commission officially adopt the City's
Financial Management Manual. Staff also recommends that the Commission
provide the City Administrative Officer with the authority, as outlined in the
manual, to execute contracts (etc.) which have previously been approved by the
Commission during the budget process or other formal action.
AGENDA
ANNUAL WHALE ROCK COMMISSION MEETING
THURSDAY, JUNE 23, 1994 AT 10:00 A.M.
CITY HALL HEARING ROOM
990 PALM STREET, SAN LUIS OBISPO, CALIFORNIA
Roll Call: Carlos Madrid, Department of Water Resources
Commission Chair
Peg Pinard, City of San Luis Obispo
Vice Chair
John Dunn, City of San Luis Obispo
Commission Secretary
Ed Naretto, Cal Poly University
Bill Cook, California Men's Colony
Bill Statler, City of San Luis Obispo
PUBLIC COMMENT PERIOD
(5 Minutes)
The Whale Rock Commission will receive public comment on items of interest to the public
within the Commission's jurisdiction.
As a general rule, action will not be taken on issues not listed on the agenda. Staff will
generally be asked to follow up on such items at the discretion of the Chair. Written
material is also encouraged.
INFORMATION ITEMS
1. Evaluation of Morro Bay Agreement for Mary Phillips (Henderson)
2. Liability Insurance (Henderson)
3. Fish Hatchery (Hamilton)
4. Cathodic Protection (Hamilton)
BUSINESS ITEMS
5. Minutes - approval of draft minutes of the June 16, 1993 Meeting.
6. Election of Officers - annual election of the Whale Rock Commission Chairperson,
Vice Chair and Secretary.
2-/a
7. Annual Budget and Financial Statement- Review and approval of the annual Whale
Rock Commission budget and financial statement.
8. Adopt City Financial, Purchasing and Policy procedures. (Henderson)
COMMUNICATIONS
C-i�-3
MffnNG DATE
June 23, 1994
WHALE ROCK COMMISSION REPORT M ""�%M
FROM: John Moss, Utilities Director Prepared By: Gary Henderson •►
SUBJECT:
1964 Agreement for Sale of Water to Water Works District No. 2
BACKGROUND:
At the June 16, 1993 Whale Rock Commission meeting, Mary Phillips of Morro Bay spoke
during the public comment period concerning the "Agreement for Sale of Water to Water Works
District No. 2" (Attachment A) which was executed in 1964. She felt that the agreement was
still valid and that the City of Morro Bay was still entitled to 300 acre feet per year under the
terms of the agreement. The item was referred to staff for evaluation.
The agreement was between the State of California, the City of San Luis Obispo and Water
Works District No. 2 (District 2). District 2 was the agency which provided water in the Morro
Bay area prior to the City's incorporation. Item No. 9 of the agreement states "No assignment
or transfer of this License or any part hereof, rights hereunder, or interest herein by District
shall be made without the express approval of Owners, except that in the event of dissolution
of the "District" this agreement shall inure to the benefit of the City of Morro Bay, upon the
acceptance of the terms of this agreement by the City of Morro Bay." This is the basis of Mary
Phillips' claim concerning the right to 300 acre feet per year. The above statement clearly
indicates that the City of Morro Bay would acquire the benefits of the agreement, but only under
all the terms contained within the agreement.
The agreement is no longer valid and the City of Morro Bay has no legal right to water from
Whale Rock Reservoir based on the following terms which are included in the agreement and
summarized below.
■ This Agreement was only in effect from July 1, 1964 until November 30, 1964
( see item 3. Period of License)
■ This Agreement determined that there was 150 acre feet of excess water which
would be made available to the District (see item 3. Determination of excess
water . This was a one time excess and not 150 acre feet per year. An
additional 150 acre feet could have been approved by the Whale Rock
Commission during the term of the agreement in 1964.
The last sentence under Item No. 3 of the agreement clearly states the intent of limiting the
rights under the terms of the agreement as shown below:
"Under no conditions shall the License granted herein to District by Owners act as a
basis for future claims of right of extension of this License and use of water by District
as contemplated herein shall not operate as a basis for future claim by District of any
right, title or interest in water rights held by Owners."
WHALE ROCK COMMISSION REPORT
Page Two
RECOMMENDATION
Receive and file.
Attachment: A. Agreement for Sale of Water to Water Works District No. 2
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srq AGRL'E3v1ENT FOR SALE OF WATER TO 1vATER
WORKS DISTRICT NO . 2
1 V/H L•'R E A S. The Strata of California and the City of San Lula Oblspo are the
2 owners of State Water RigAits Applications number 1711.3, 171I5 and 17116 to divert
3 the waters of Old Creek by tau construction of a Reservoir and to lmpoamd the waters
4 of Old Creels in said Reservoir;and
5 W li L••RE AS, the stated applications and permits are suffIcicnt to appropriate
6 all waters available for diversion and subject to storage in said Reservoir;and
7 W H L•'Ira A S, pursuant to the.stated applications and permits, the State of
8 California and the City of San Luis Obispo, hereinafter referred to a3 "Owners,"11%vc
9 constructed a dam and diversion works including,a pipeline and pumping stations,
10 hereinafter reforred to as "Diversion System,"for the purpose of:-coring, diverting
11 and transporting said waters to the Owners;and
12 W HE REAS. San Luis Obispo County Water Works District No. 2, herein-
13 after referred to as "District,"desires to purchase up to 300 acre feet of water
14 throu;b the Diversion Syatem;and
15 W H E R E A S , it appears that an interim supplcmcntal supply of water can be
16 made available to the Dlstrict by and through the use of water excess to the needs
17 of the ownars davelopad by the Diversion System;
lg N 0 W, T H E R L F 0 R E , Owners, acting by and through the W'nnle Rock
19 Commission, hereby gement to District a License revocable at will by the W1mle
20 Rock Commission, to operate and maintain a connection to Diversion System in the
21 location as shown on the map attached and made a part hereof.
22 T H IS. LI C H N S E is grunted subject to the following provisions and condltiono:
23 1. Storage and conveyance of tater. Ownors will operate Diversion System
24 in such a ananner wid"its capacity as to store, divert and convey to the point of
25 Jun==of District's conaeetien to Diversion System, provided that the quantity of
26 mater to to stored, divertod and conveyed by Owners to District's.connecsioa is to
27 he only the excess water over and above the quantity uccessary for tie needaa of
28 Owners, which needs are to be determined solely by Owners.
29 2. a=rm+tia*a^n of excess water. Owner's hereby determine that 1j0 acre
30 fact will be made available to District parsuant to the terms and conditions of dds
31 Ag-reement. Subject to prior approval by the Whale Roca•.Comanisuion; an additional
32 150 acre feet may be made available to the District during the term hereof. Tian
is
1 amount of water a;trolly sold to the District is to be charged pro-rota against each
2 permittee.
3 3. Period of Licome. This Liewn a olzall be in effect from July 1, 19&1 and
4 shall remain In effect until Noveader 30, 1904. Under no conditions eltall clic
5 License granted herein to District by Owaers act as a babis for faturc: claims of
6 right of extension of this Liocus:4 and use of water by District as contemplated
7 herein sball not operate as a Innis for 9nure claim by District of any rl f}it, title
8 or interest in water rights held by Owners.
9 4.. Construction of structures and appurtenances. District-h creby and rtalms
10 to construct at its own expense and at no cost to Owners, all structures and
11 appurtenances accessary to measure and transport excess waters from Diversion
12 System, including any modifications necessary to Diversion System. District shall
13 submit complete construction plans and specifications for all such structures,
14 appurtenances, and/or nwdltications to the City of Ban Lulb Obithlio and receive
15 approval of said City's Water Superintendent before proceeding. Said ap pro',al,
is ��, will be made within thirty(30) calendar days from receipt of saki plasm and
17 specifications.
18 5. Rate of delivery. During the tr:r=of this License, the Owners will
19 deliver to District up to three hundred(300) acre feet of excess water tl=4u i
20 Diversion System, subject to the terms and conditions sot fortis br.TAn, and District
21 agrees to pay for such delivery as provided heroin. Thu times and rates of dclive y
22 of water through DIversfon System during the period of this License shall be
23 d,=rmined by thus City of San Luis Obispo, the operating agent.
24 6. Measurement and payment for water delivered.. The Owners nhall measure
25 all watcra delivered to District and shall Mill District at not less than montldy
26 Samrviis. District shall tnal a payment to Owners for water delivered to DL.trict
27 at the rate of One 13undrod Fourtoca and No/100 Dollars($114.00) per acre foot.
28 Beets shall be due and payable upon presentation of lulls by Ovmera. If each hill la
29 h>ot paid within shiny (30) days after the submission of said bill, thou ouch amount
30 shall draw istexcst at the roto of four poregnt(Q per annum, until paid.
31 7. Payment of power Couto. The cost of power for pumping water to District's
32 point of connocticm to Dlvexslon System during the period of this License aFnll be
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4
1 estimated and paid in advance of the delivery of any water to District. IF in any
2 year, by reason of errors in computation or other causes,.there is an over-payment
3 or under-payment to Owners by District for power costs, the amount of such over-
4 payment or under-payment, as the case may be, shall be corrected by Owners paying
5 such amount of over-payment to D186-ict, or.District paying such amount of under-
6 payment to Owners.
7 B. Indemnification clauses. Owners merely Hereby agree to furnish untreated
8 raw water as is available from rima to thus in Diversion System and neithor the
9 Owners, their officers, agents or employees shall be liable in any nuumer whatsoever
10 for said water quality. ruither, acitior the Owners nor any of its officers, agents,
11 or employees shall be liahio for the control, carriage,•.handling, use, disposal or
12 distribution of water supplied to District after such water has passed District's
13 connection.to Diversion System;nor for claim of damage of any nature wlmtsocver,
14 including but not limited to property darnage. personal injury or death, arising out
15 of or connected with the control, carriage, handling, use, disposal or distribution
16 of such orator beyond said District's connection to Divorsion System and District
17 sball indemnify and hold harmless the Ch-mars and their officers, a&v. as and
18 employees from any such damages or claims of damages.
19 9. Asalgament. No assignment or transfer of this License or any part hereof,
20 rid=lhe:rcu=er, or interest hcrcin by District e1w11 be made without the exprceo
21 approval of Owners, ret a tunC!n flue event of dissolution of the 'District"this
22 agroement sball to the benefit of the City of Morro Bay, upon the acceptance
2-3
of the terms of this agreement by the City of Morro.*-
24 THIS AGREEMENT, for reference purposes only,-is dated the 12th day of
25 b&y, 1961.
26 EXECUTED by the parties hereto on the dates indicated.
27 WHALE ROCK COMMISSION
28
29 Date.,:/,
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1 SAN LUIS OIILSPO COUNTY WATER
WORKS DISTRICT NUMBER 2
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6 APPROVED this �C�' day of r_�-n, n-r,c. .1964:
7
CITY OF SAN LUIS ODISPO
8
By
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12 APPROVED this. day of 1964:
13 CALIFORNIA STATE DEPARTMENT•
OF FLgilNCE
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MEETING DATE:
June 23 1994
WHALE ROCK COMMISSION REPORT REMN49,
UMEIER:
FROM: John Moss, Utilities Director of Prepared By: Gary Henderson Awo
SUBJECT:
Liability Insurance for Whale Rock Reservoir
BACKGROUND:
Last year during annual insurance coverage review for City facilities, Commission staff
requested an analysis of the coverage for the Whale Rock Reservoir and related facilities. The
attached memorandum outlines the insurance coverages that are in place for Whale Rock
Reservoir. The only area which is not covered is for Dam Liability. As indicated in the
attachment, the estimated premium for this additional coverage is $103,500 per year.
Dam liability insurance is very expensive and only one insurance company would provide a
quote for this coverage. Since this facility is monitored and regulated by the State Division of
Safety of Dams, the additional insurance coverage is not recommended by staff. If the
Commission desires to purchase this type of coverage, the Underwriter would need to fully
develop a quotation based upon a thorough review of all the data available.
FISCAL EMPACT
Funds have not been budgeted for additional liability insurance and would require additional
assessments from member agencies.
RECOIINEM ENDATION
Receive and file.
June 17, 1993
MEMORANDUM
TO: Gary Henderson, Water Division Manager
FROM: Wendy George, Personnel Analyst U)
SUBJECT: Whale Rock Reservoir Insurance
As you requested at our recent meeting, I spoke with Marylin Kelley of Sedgwick to
determine exactly what insurance coverages are in place for Whale Rock Reservoir.
1 . Since all the workers are City employees, they are all covered under the City's
workers' compensation insurance program.
2. The buildings are covered by our property insurance.
3. Liability is covered by our liability insurance except for liability caused by dam
failure or failure to supply water. This coverage would include someone falling
in the reservoir, etc.
4. The City's representatives to the Commission are covered as individuals for
errors and omissions, but the Commission as a whole is not covered.
5. Some machinery would be covered under our Boiler and Machinery coverage.
I do not know what type of arrangement there is between Commission members for
reimbursing the City for providing these coverages--or if any reimbursement even
occurs.
Please let me know if you need any further information.
� JUN 171993
L- I
CITY OF SAN LUIS u31SP0
PUBLIC WORF S/1,1 i Ii.i7:_S
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- CORP
Sedgwick
Sedgwick James of California, Inc.
PO Box 7601, San Francisco, California 94120-7601
Telephone 415 983-5600. Telex 820236. Facsimile 415 398.1841
June 9, 1993
Mr. Gary Henderson
Water Division Manager
City of San Luis Obispo
955 Morro Street
San Luis Obispo, CA 93401 via Facsimile (805) 542-9867
WHALE ROCK DAM INSURANCE
REVISED PREMIUM INDICATION
Dear Gary:
I have presented the underwriting information to the Lexington Insurance company and have
received the following response:
COMPANY: LEXINGTON INSURANCE COMPANY
BEST RATING: A XV Not Admitted in California
NAMED INSURED: WHALE ROCK COMMISSION
LIMIT OF LIABILITY: $1,000,000
RETAINED LIMIT: $250,000
ANNUAL MINIMUM PREMIUM INDICATION: $1039500
Includes 3.5% Surplus Lines Taxes and Fees
The underwriter has advised me today that this is a minimum premium indication only
based upon a quick review of the data. If the City of San Luis Obispo is interested in
pursuing a final quotation, the Underwriter will fully develop a quotation based upon a
thorough review of all the data available.
COVERAGE TERMS:
Due to the fact that Lexington would charge the same minimum premium, they are offering
General Liability and Errors and Omissions coverage in addition to the Dam Liability
coverage.
Any watercraft would need to be scheduled. D d I
IN 1 4 19M
CITY OF Slay LUIS 031SP0
Sedgwrck Jamas Insurance Brokers PUBLIC wOP.Y.S!1.1TILi'rs%S
Insurance Broking Risk Services Employee Benefils
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Con,
Page 2 of 2 Sedgwick
Exclusions:
Coverage does not apply to:
Workers' Compensation or Employers' Liability;
ERISA;
No fault or uninsured motorists coverage;
Property owned, leased or in the care custody or control or the insured;
Bodily Injury or Personal injury to another employee;
Nuclear Liability;
Absolute Pollution;
War, invasion,civil war, rebellion, revolution, insurrection, terrorism, military terrorism, etc.;
Asbestos;
Past salary or wages due because of unlawful discrimination;
Viruses HTLV I, HTLV II, HTLV III, HTLV IV;
Failure to supply water, gas or electricity;
Medical Professional services;
Eminent domain, Inverse condemnation, condemnation proceedings, etc.;
Fines or punitive damages;
Refund of taxes, fees, or assessments,;
Financial gain, willful violation of the penal code;Faulty preparation of bid specifications or
plans including architectural plans;
Failure to perform or breach of a contractual obligation;
Fiduciary activities related to employee benefit plans.
I hope this is enough information for the Commission to make an informed decision.
Sincerely,
r
ary ' eDey
Vice President
Public Entity Group
cc: Ms. Wendy George
d-/o-13
MEETING DATE:
June 23 1994
WHALE ROCK COMMISSION REPORT REM NU r:
FROM: John Moss, Utilities Director Prepared By: Bob Hamilton
SUBJECT:
Fish Hatchery Update
BACKGROUND:
In 1964, a Decision and Order by the Fish and Game Commission of the State of California
required the Whale Rock Commission to stock the reservoir with 17,500 trout annually. The
California Department of Fish and Game has insisted that the lake's steelhead gene pool remain
intact, which has made procurement of small fish each year for planting virtually impossible.
In 1991, after several attempts to locate a suitable hatchery for purchase of steelhead fingerlings
which met the requirements of the Department of Fish and Game, staff met with the Department
to discuss other options for meeting their requirements. The most feasible alternative for
improvement of the fishing program was the possibility for placement of a small scale steelhead
hatchery at the reservoir.
In 1992, after another critically dry water year, (and little potential for natural spawning) the
Department of Fish and Game approved our request to trap adult steelhead trout for a pilot
hatchery program to be located at Whale Rock Reservoir. During the 1992 spawning season,
we were able to trap 35 adult fish and remove approximately 50,000 eggs for incubation in our
makeshift hatchery. Inter that year, staff was able to return over 20,000 young steelhead to the
reservoir.
Weather conditions in 1993 were unfavorable for fish trapping, however, this season staff
captured and spawned over 300 adult trout, providing over 70,000 eggs for our current hatchery
operation. It is anticipated that approximately 30,000 steelhead will be raised and released this
year. The program has become so successful that the Department of Fish and Game is
considering the use of Whale Rock Hatchery trout to repopulate several of the County's drought
impacted coastal streams, since the Whale Rock Steelhead Trout is genetically closest to the local
stream's traditional inhabitants.
The success of this program is due in part to dedicated assistance from the Department of Fish
and Game and volunteers from Central Coast Salmon Enhancement.
RECOMMENDATION
Receive and file.
0/o-i
WHALE ROCK FISHING STATISTICS
50400 450-
400-
----- ----- ------...--....................._.......---.......------......- ....-.._....................----.....................
350 ----------------------------------------------- stocking dates .................................................... ................................................................
300 ----------. _._..._....-------....._... ....... __ _ _ .._...._.__._._......._...._...._...._..._..........
250 ---------- -- ---...----------------_- ...........__.-- -- -......... ---.................-•----...................
200- - -- - T.. - - --------------------------------------- -
150 -- - - ----... .......... ------------------------- -----
..........
-----.................... ................................................
100 ....................... ...................................... ............................................... ...........................................---•---•-------
50 — _..._ _._....--------------- --------------------------- ----------- ------------..................................---......------............ ........................ ..................
0 -
81 82 83 84 85 86 87 88 89 90 91 92 93
-�- FISH CAUGHT
C-io-is
M&T NG DATE:
June 23 1994
WHALE ROCK COMMISSION REPORT NUIg
MBER:
FROM: John Moss, Utilities Directd� Prepared By: Bob Hamilto
SUBJECT:
Cathodic Protection Update
BACKGROUND:
In March, 1992, Cathodic Protection Services Company (CPS) conducted a baseline cathodic
protection system field survey on the Whale Rock pipeline. The study evaluated pipe to soil
readings on the existing pipeline and recommended sacrificial anode replacement in several areas
where pipeline protection has been reduced, installation of anodes in several new areas, and
replacement of several test stations that have been lost through the years. An additional
recommendation was made to retest the pipe to soil potentials on the pipeline after completion
of the system repairs outlined within the report.
To properly maintain the cathodic protection of a pipeline, it is necessary to know the maximum
anodic potential under field conditions for the structure in question. For steel pipes in contact
with moist soil, it has been found that the potential for the most anodic area is usually less than
0.85 volts negative with respect to a saturated copper sulfate reference electrode. Therefore,
if the entire surface area of a buried steel structure can be maintained at a potential of at least
850 millivolts negative to a copper sulfate reference electrode, the structure will be completely
protected. This criterion of cathodic protection is universally accepted for the protection of steel
pipes in soil.
Current Status
To reduce costs associated with implementation of the report's recommendations, Commission
staff initiated the recommendations and installed magnesium anodes at the locations identified
as well as other sites which have recently fallen below acceptable protection levels. New
cathodic protection test stations were installed at several locations, and pipe to soil potentials for
the pipeline have been retested as recommended within the report.
The level of cathodic protection on the Whale Rock Pipeline has been increased dramatically
from previous readings. Staff has been involved with the collection of the pipe to soil potential
measurements, and will be reviewing these potentials annually for continued monitoring of the
cathodic protection system and various components.
Ongoing Savings
The CPS report estimated the overall cost for repair and facilities retesting of the existing
pipeline to be in excess of $30,000. In order to reduce the Commission's associated
maintenance cost while providing the best possible protection for the pipeline and facilities, the
recommended remedial work was performed entirely by Whale Rock staff, utilizing on hand
materials.
WHALE ROCK COMMISSION REPORT
Page Two
Total materials cost to date for the installation of 8 cathodic protection test stations and 9
magnesium anodes has been less than $500.
RECOMMENDATION
Receive and file.
Draft Minutes Item #5
WHALE ROCK COMMISSION MEETING
Wednesday, June 16, 1993
City Hall Hearing Room
990 Palm Street, San Luis Obispo, California
Commission Members Present:
Carlos Madrid, Department of Water Resources, Commission Vice Chair
John Dunn, City of San Luis Obispo, Commission Secretary
Peg Pinard, City of San Luis Obispo
Ed Naretto, Cal Poly University
Bill Statler, City of San Luis Obispo
Bill Cook, California Men's Colony
City Staff Present:
Gary Henderson, Water Division Manager
Becki Austin, Recording Secretary
John Moss, Acting Utilities Director
Dan Gilmore, Utilities Engineer
Guests:
Charles White, Chief of Water Management, Department of Water Resources
Roll Call
Commissioner Madrid called the meeting to order at 1:40 p.m. and asked for a roll call. All
Commissioners were present. He then addressed the audience and asked for any public
comment in accordance with the Brown Act (items not on the agenda).
George Brett of Morro Rock Mutual Water Company in Cayucos spoke representing the
Cayucos Area Water Organization (CAWO). Mr. Brett introduced Carl Berry and Bob Lyon
and Mr. Piaskowski. Mr. Brett thanked the Commission for staff's efforts to dredge the
downstream ponds alleviating future well problems during peak water usage. Commissioner
Dunn asked Mr. Brett about perforations in the well casings, if they are going to be
unclogged. Mr. Brett said repairs have been made to correct this problem which have
increased water capacity in the wells.
Mary Phillips of Morro Bay stated the "1964 Agreement for Sale of Water to Water Works
District No. 2" was still valid and the City of Morro Bay was still entitled to 300 acre feet of
water per year under the terms of the agreement. Commissioner Dunn asked that this item
be referred to staff for review and brought back to the.next Commission meeting.
Whale Rock Commission Meeting
June 16, 1993
Draft Minutes - Page 2
Commissioner Madrid introduced Commissioner Peg Pinard, newly elected elected Mayor of
San Luis Obispo and Commissioner Bill Cook, representing the California Men's Colony.
INFORMATION ITEMS
Commissioner Madrid stated staff and the other Commissioners had just returned from a tour
of the Whale Rock Reservoir Pump Station Upgrade Project and asked Gary Henderson to
report on the status of this project.
1. Status of Whale Rock Pump Station Upgrade Project - Gary Henderson stated the
upgrade is proceeding well. The buildings have been constructed and the electrical
equipment has been installed. The new pumps and motors are on site awaiting
installation. As of May 15, the project is 85% complete and expected to be
completed by late July or early August. Regrading around the building at Pump
Station A will take place after the completion of the project. Commissioner Dunn
complimented the design and construction of this project.
2. Pump Efficiency Upgrades - Gary Henderson stated Bob Hamilton headed a project to
replace worn pump impellers and pursued special funding available from Pacific Gas
and Electric Company (PG&E) to reduce the Commission's overall capital cost. The
pump repair work is now complete, increasing pump efficiency 20.4% providing
more water to the user agencies. Financial rebates from PG&E for the project
amounted to $13,019, or about 48% of the project materials cost. Existing staff was
utilized to install the impellers and assisted PG&E pump test personnel as required.
The final Commission cost is $14,047 which will be recovered in approximately three
months of normal operation.
3. Elimination of Seasonal Fishing Facility Personnel - Gary Henderson stated Whale
Rock staff has eliminated two part time seasonal employees who monitor public
access and collect related entrance fees. Their duties have been replaced with existing
staff in an annual salary savings of $17,200.
4. Cathodic Protection - Gary Henderson reported on a baseline cathodic protection
survey which indicated needed repairs to the Whale Rock pipeline which consisted of
replacement of deteriorated galvanic anodes and additional corrective measures. A
consultant estimated the repair cost at $24,250. Staff decided to undertake the repairs
utilizing existing supplies at an estimated savings of over $17,000. The pipeline will
be retested to maintain the revised protection levels on an annual basis.
Whale Rock Commission Meeting
June 16, 1993
Draft Minutes - Page 3
BUSINESS ITEMS
1. Minutes - Commissioner Dunn made a motion to approve the minutes from the
September 24, 1992 meeting, seconded by Commissioner Naretto.
2. Election of Officers - Commissioner Madrid opened the nominations for new fiscal
officers. Commissioner Dunn made a motion to appoint Carlos Madrid as Chairman
for the 1994-1995 fiscal year, seconded by Commissioner Naretto. Motion was
unanimous.
Commissioner Dunn made a motion to appoint Peg Pinard as Vice Chair for the
1994-1995 fiscal year, seconded by Commissioner Cook. Motion was unanimous.
Commissioner Madrid made a motion to appoint John Dunn Secretary for the 1994-
1995 fiscal year, seconded by Commissioner Cook. Motion was unanimous.
3. Resolution of Appreciation for Commissioner Carmen Salvato and Commissioner
Dunin. Commissioner Dunn spoke highly of the two past Commissioners and read
the Resolutions aloud. Motions were made and seconded approving the Resolutions.
4. Annual Budget and Financial Statement - Gary Henderson noted one significant
operating program change, a request for an additional
$3,000 annually in fiscal years 1993-94 and 1994-95 to pay for inspection by the State
of California Division of Safety of Dams.
After discussion Commissioner Dunn made a motion to approve the 1994-1995 Whale
Rock Reservoir Budget, seconded by Commissioner Pinard. Motion was unanimous.
5. Pump Station Project. Purchase of PG&E Transformer - Gary Henderson reported on
reducing energy costs at the Whale Rock Pump stations while undergoing a major
upgrade. A cost effective option is to purchase the electrical power transformer from
PG&E. The estimated annual savings would be approximately $7,000. The savings
are based on current electrical power costs which will increase in the future,
increasing annual savings. The cost of the transformer is approximately $39,000 and
funds would be available from the Pump Station Upgrade Project contingencies or the
fund balance used to cover any shortfall. Commissioner Madrid made a motion
directing staff to coordinate the purchase of the transformer from PG&E authorizing
the Utilities Director to sign purchase agreements as required, seconded by
Commissioner Pinard. Motion was unanimous.
Whale Rock Commission Meeting
June 16, 1993
Draft Minutes - Page 4
Commissioner Pinard complimented staff on the cost savings for various projects, utilizing
staff time and equipment and suggested it noteworthy to inform the public of such savings
through press releases.
There being no further business to come before the Commission, the meeting adjourned at
2:37 p.m.
Respectfully submitted,
Becki Austin, Recording Secretary
MMnNG MM-
June 23, 1994
WHALE ROCK COMMISSION REPORT 'E"NUNT
FROM: John Moss, Utilities Director PREPARED BY: Sue Baasch
SUBJECT:
WHALE ROCK RESERVOIR 1994-95 BUDGET
BACKGROUND:
RECOMMENDATION:
By motion, adopt the 1994-95 Whale Rock Reservoir Operations and Fishing Program
Budget.
DISCUSSION
In June 1993, the Whale Rock Commission approved the two year 1993-95 Financial Plan
for the Whale Rock Reservoir Operations and Fishing Program. The 1993-95 Financial Plan
included budgets for both 1993-94 and 1994-95. The recommended action would formally
adopt the 1994-95 Whale Rock Reservoir Operations and Fishing Program Budgets.
The 1994-95 operating budgets for reservoir operations and the fishing program are
consistent with the projections identified in the 1993-95 Financial Plan. The only variation is
to the projections of reservoir operations salary due to changing requirements for
contributions to worker's compensation and the Public Retirement System and employee
contract negotiations. The 1993-95 Financial Plan (budget pages attached) showed $215,100
for 1994-95 salaries. As presented for adoption, the updated 1994-95 budget shows
$222,600 for salaries, for a revised total of $546,200. All other operating expenses are
unchanged from the 1993-95 Financial Plan. The fishing program total budget remains
$2,700.
There is one capital improvement project request in the amount of $30,000 to perform a
sanitary survey of the Whale Rock watershed, in compliance with the State Department of
Health Services requirements. No additional budget is requested, as funds remains in the
nearly completed Whale Rock Pump Upgrade project which can be returned to fund balance
to pay for the sanitary survey.
Based on the projected revenues and requested expenditures, the allocation of operating
charges for fiscal year 1994-95 for each of the Whale Rock Commission member agencies is
as follows:
1994-95
City of SLO $187,060
Cal Poly 114,547
Men's Colony 38,193
Total $339,800
C-/o a
WHALE ROCK COMMISSION REPORT
Whale Rock Reservoir 1994-95 Budget
Page 2
Agency contributions for 1994-95 are slightly less than projected. The City of San Luis
Obispo's currently approved cost allocation plan reduced the projected indirect support costs
for the Whale Rock fund.
The allocation of operating charges does not include pumping charges as they are billed
separately, based on actual billings from Pacific Gas and Electric, prorated according to the
amount of water pumped to each member agency in a particular quarter. The estimate for
aggregate pumping charges for the member agencies in fiscal year 94-95 is $279,000.
Attached are the following documents:
■ Whale Rock Operations and Fishing Program Narrative and Budget Summary (excerpt
from 1993-95 Financial Plan)
■ Capital Improvement Project Request
■ Whale Rock Commission Member 1994-95 Allocation Summary based on 1994-95
Budget
■ Whale Rock Fund Balance updated to reflect the 1994-95 Budget
FISCAL IMPACT
Based on projected revenues and beginning fund balance, adequate resources are available to
fund the presented Fiscal Year 1994-95 Budget.
C/a
1993-95 FINANCIAL PLAN SUPPLEMENT
APPROVED 1994-95 BUDGET
INHALE ROCK COMMISSION
July 1994
PUBLIC UTILITIES
PROGRAM: Reservoir Operations OPERATION: Whale Rock Commission
DEPARTMENT: Utilities FUND: Whale Rock Fund
1991-92 1992-93 1993-94 1994-95
PROGRAM COSTS ACTUAL BUDGETED APPROVED APPROVED
Staffing $ 187,700 $ 229,400 $ 210,900 $ 215,100
Contract services 24,500 28,100 32,600 26,600
Other operating expenditures 128,400 408,000 297,000 297,000
Minor capital 14.800 .0 0 0
TOTAL $ 355,400 $ 665,500 $ 540,500 $ 538,700
PROGRAM DESCRIPTION
The Whale Rock commission is a joint powers agency with six voting members who represent three state agencies and
the City. This commission was formed to build the Whale Rock Reservoir and set policy for its operation. The City of
San Luis Obispo, California Men's Colony(CMC), and California Polytechnic State University(Cal Poly) are the actual
water users, sharing the costs and benefits of the reservoir in proportion to their original investment,with the city at 55
percent, Cal Poly at 34 percent, and CMC at 11 percent.
The reservoir operations program provides for raw water storage in a 40,600 acre-foot reservoir and raw water delivery
through 19 miles of conduit and two pump stations to the agencies of the Whale Rock commission. The program goal
is a reliable, easily treatable supply of raw water for the participating agencies and other customers. This program has
six major activities:
• Water collecdoa,storage and defiiwy. Collecting and storing raw water,pumping raw water to member agencies and
other customers (20%of program costs)
• Sunwillmnce. Patrolling and inspecting the dam, reservoir, conduit and pump stations to prevent vandalism and
contamination (209c of program costs)
• Egrdpment maintenance- Performing periodic preventive maintenance,repairing damaged equipment,and replacing
worn and obsolete parts (35%of program costs)
• Recordkeepin& Preparing records and reports for local, state, and federal agencies (159o' of program costs)
Powergeneradorn. Generating electricity from a 48 kilowatt turbine generator for sale to Parc Gas& Electric (5%
of program costs)
• Groundwater reclrmgin& Releasing and ponding water to recharge aquifers used for the town of Cayucos (5% of
program costs)
STAFFING SUMMARY
Regular Positions:
Utilities Director 0.1 0.1 0.1 0.1
Utilities Engineer 0.1 0.1 0.1 0.1
Water Division Manager 0.1 0.1 0.1 0.1
Administrative Analyst 0.1 0.1 0.1 0.1
Administrative Secretary 0.1 0.1 0.1 0.1
Water Supply Supervisor 1.0 1.0 1.0 1.0
Water Supply Operator 20 2.0 2.0 2.0
TOTAL 3S 3.5 3.5 3S
Temporary positions:
Full-time equivalents 0.4 0.4 0.4 0.4
-/D -J,45*�
PUBLIC UTILITIES
PROGRAM: Reservoir Operations (continued)
DEPARTMENT: Utilities
SIGNIFICANT EXPENDITURE AND STAFFING CHANGES
• 1993-95: Reducing line items for electricity,pumping,equipment maintenance,laboratory services,and contract
services will save 576,300 annually.
• 1993-95: Evaluating the seismic dam as required by the State will cost $6,000 annually, an increase of 53,000
from prior years.
1993-95 PROGRAM OBJECTIVES
• 199495: Design and complete the telemetry system installation
• 1993-94: Complete pump station modifications to improve water flow during peak delivery operations
PERFORMANCE AND 1991-92 1992-93 1993-94 199495
WORKLOAD INDICATORS ACTUAL PROJECTED ESTIMATED ESTIMATED
Acre-feet of raw water pumped 1,460 2,000 2,000 2,000
Reports filed with regulatory agencies 100 100 100 100
Interruptions in water delivery 6 3 3 3
93-95FP2/WROPRTNS.WPF
PUBLIC UTILITIES
PROGRAM: Whale Rock Fishing OPERATION: Whale Rock Commission
DEPARTMENT: Utilities FLV: Whale Rock Fund
1991-92 1992-93 1993-94 1994-95
PROGRAM COSTS ACTUAL BUDGETED APPROVED APPROVED
Staffing $ 13,200 $ 17,200 $ 0 $ 0
Contract services 900 2,900 1,400 1,400
Other operating expenditures 1,100 1,300 1,300 1,300
Minor capital 0 0 —0 0
TOTAL $ 15,200 $ 21,400 $ 2,700 $ 2,700
PROGRAM DESCRIPTION
The Whale Rock fishing program provides for the operates and maintains the fishing facilities built in 1981. The program
goal is clean, functional fishing facilities which do not jeopardize the purity of the raw water in the reservoir. This
program has three major activities:
• Cltstomer service Collecting fees, controlling admittance, providing direction and advice (349c' of program costs)
• BWI&mgr and Vounds mabamance Cleaning and tending buildings, removing trash and litter, performing minor
repairs (33% of program costs)
• Sunvillmrce Patrolling fishing activities to prevent contamination of the reservoir (33% of program costs)
STAFFING SUMMARY
Regular positions:
None. Staffing is provided through the reservoir operations program.
Temporary positions:
Full-time equivalents 1.1 1.1 0.0 0.0
SIGNIFICANT EXPENDITURE AND STAFFING CHANGES
• 1993-95: Eliminating seasonal staffing for the fishing program will save $17,200 annually. This has been
accomplished through a modified operations staff schedule that incorporates these duties.
1993-95 PROGRAM OBJECTIVES
• Continue to work toward achieving program goals
93-95FP2/WRFISHNG.WPF
-Io -�7
CHANGES IN FUND BKt_ANCE
WHALE ROCK COMMISSION
1991-92 1992-93 1993-94 1994-95
ACTUAL ACTUAL BUDGET APPROVED
Revenues
Service Charges.
Member Agency Contributions $410,800 $360,900 $333,100 $339,800
Water Distribution Charges 112,100 135,100 279,000 279,000
Other Revenues 3,600 126,000 2,000 2,000
Total Service Charges 5261500 622,000 614,100 620,800
Investment and Property Revenues 89,400 33,100 20,000 10,000
Total Revenues $615,900 $655,100 $634,100 $630,800
Expenditures
Operating Programs
Public Utilities $370,600 $460,400 $556,200 $548,900
General Government 96,700 103,000 74,500 77,100
Total Operating Programs 467,300 563,400 630,700 626,000
Capital Projects 61,100 969,400 340,400
Total Expenditures $528,400 $1,532,800 $971,100 $626,000
Other Sources (Uses)
Operating Transfers Out (5,000) (5,200) (4,600) (4,800)
Revenues and Other Sources Over (Under)
Expenditures and Other Uses 82,500 (882,900) (341,600)
Fund Balance, Beginning of Year 1,313,200 1„395,700 512,800 171,200
Fund Balance, End of Year $1,395,700 $512,800 $171,200 $171,200
Whale Rock Commission
1994-1995 Budget
Calculation of 1994-95 Operating Charges
Fiscal Year
199495
Operating Expenditures 548,900
Other Expenditures 81,900
Total Expenditures 630,800
Less: Direct Revenues
Distribution (279,000)
Investment Earnings (10,000)
Fishing Fees (2,000)
(291,000)
Operating Charges 339,800
Allocation of Operating Charges
Agency
Total Percent
City of San Luis Obispo 187,060 55.05%
Cal Poly 114,547 33.71%
Men's Colony 38,193 11.24%
Total $339,800 100.00%
1994-95 Financial Plan h--quest
CAPITAL IMPROVEMENT PLAN
PROGRAM: Whale Rock Operations
REQUEST TITLE: Sanitary Survey
Request Summary
A sanitary survey must be conducted on the Whale Rock Reservoir watershed. The Surface Water Treatment Rule(SWTR)
requires domestic water suppliers to conduct a sanitary survey of their water supply watersheds by January 1, 1996. The
survey reports must then be updated every five years thereafter. The California Department of Health Services, Office of
Drinking Water (DHS) is responsible for implementing this portion of the SWTR. The survey is intended to document
potential sources of surface water contamination.
Primary Objectives
■ Satisfy DHS requirement to complete a sanitary survey of the Whale Rock Reservoir Watershed.
■ Develop a document that can be easily updated to maintain compliance with DHS regulations.
Primary Factors Driving the Request for Change
■ Regulations issued by the Department of Health Services, Office of Drinking Water.
Alternatives
■ Deferral of the sanitary survey. Failure to comply with the DHS requirement could result in substantial fines.
Schedule and Project Costs
Prior Project
Budget(s) 1994-95 Total
etiasmg:
Study $ 0 $ 30,000 $ 30,000
Recommended Funding Sources:
Available budget remaining
in completed Whale Rock upgrade
project contingency. $ 0 $ 30,000 $ 30,000
Implementation
The completion of these sanitary surveys is mandated by DHS and the SWTR. The sanitary surveys for both the Whale
Rock and Salinas Reservoir watersheds will be included in the scope of work of a single Request for Proposals to be prepared
by the City of San Luis Obispo's Utility Engineer.
�o- 30
MEETING DATE:
June 23 1994
WHALE ROCK COMMISSION REPORT NUMBER:
FROM: John Moss, Utilities Director Prepared By: Gary Henderson ga. k
SUBJECT:
Adoption of City Financial, Purchasing and Policy Procedures
BACKGROUND:
The City of San Luis Obispo has developed and adopted the Financial Management Manual that
establishes financial, purchasing and policy procedures. Staff recommends that these procedures
be officially adopted by the Whale Rock Commission to insure consistency with current policy.
Areas within the manual which refer to the City Council would be substituted with Whale Rock
Commission for implementing procedures. The key sections of the Financial Management
Manual are listed below:
■ Purchasing Policies and Procedures
■ Travel Policies and Procedures
■ Fixed Assets and Inventory Management
■ Budget Policies and Procedures
■ Accounting Policies and Procedures
■ Administrative Polices and Procedures
The Financial Management Manual also establishes procedures for the City Administrative
Officer concerning execution of contracts for projects and services. Staff recommends that the
Whale Rock Commission provide the City Administrative Officer with the authority, as outlined
in the manual, to execute contracts (etc.) which have previously been approved by the
Commission during the budget process or other formal action.
FISCAL IMPACT
There is no fiscal impact associated with the adoption of the Financial Management Manual.
RECONIMIINIDATION
Adopt the City's Financial Management Manual and authorize the City Administrative Officer
to execute contracts (etc.) as outlined in the procedures.