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Home My WebLink About05-28-2026 Whale Rock Commission Agenda Packet Whale Rock Commission AGENDA Thursday, May 28, 2026, 10:00 a.m. Council Hearing Room, 990 Palm Street, San Luis Obispo The Whale Rock Commission holds in-person meetings. Zoom participation will not be supported. Attendees of City Council or Advisory Body meetings are eligible to receive one hour of complimentary parking; restrictions apply, visit Parking for Public Meetings for more details. 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 advisorybodies@slocity.org. In the body of your email, please include the date of the meeting and the item number (if applicable). Emails will not be read aloud during the meeting. Voicemail - Call (805) 781-7164 and leave a voicemail. Please state and spell your name, the agenda item number you are calling about, and leave your comment. Verbal comments must be limited to 3 minutes. Voicemails will not be played during the meeting. *All correspondence will be archived and distributed to members, however, submissions received after the deadline may not be processed until the following day. Public Comment during the meeting: Meetings are held in-person. To provide public comment during the meeting, you must be present at the meeting location. Electronic Visual Aid Presentation. To conform with the City's Network Access and Use Policy, Chapter 1.3.8 of the Council Policies & Procedures Manual, members of the public who desire to utilize electronic visual aids to supplement their oral presentation must provide display-ready material to the City Clerk by 12:00 p.m. on the day of the meeting. Contact the City Clerk's Office at cityclerk@slocity.org or (805) 781-7114. Pages 1.CALL TO ORDER Chair Whitney McDonald will call the Regular Meeting of the Whale Rock Commission to order. 2.PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA The public is encouraged to submit comments on any subject within the jurisdiction of the Whale Rock Commission that does not appear on this agenda. Comments are limited to 3 minutes per person. Although the Commission will not take action on items presented during the Public Comment Period, the Chair may direct staff to place an item on a future agenda for discussion. 3.CONSENT Matters appearing on the Consent Calendar are expected to be non- controversial and will be acted upon at one time. A member of the public may request the Whale Rock Commission to pull an item for discussion. The public may comment on any and all items on the Consent Agenda within the three- minute time limit. 3.a CONSIDERATION OF MINUTES - MAY 8, 2025 WHALE ROCK COMMISSION MINUTES 7 Recommendation: To approve the Whale Rock Commission Minutes of May 8, 2025. 4.ELECTION OF OFFICERS 4.a ANNUAL ELECTION OF THE WHALE ROCK COMMISSION CHAIR, VICE CHAIR, AND SECRETARY 11 Historically, the position of Chair rotates among members of the Commission. At the pleasure of the Commissioners, the next rotation would be Luis Martinez, Chair, Emily Jackson, Vice Chair; and Chad Worth, Secretary. After the election of officers, the new Chair presides over the meeting. Recommendation: Appoint Luis Martinez as Commission Chair, Emily Jackson as Commission Vice Chair, and Chad Worth as Commission Secretary. 5.PRESENTATIONS 5.a 2025-26 ACCOMPLISHMENTS 13 Receive a presentation of staff's 2025-26 accomplishments. 6.BUSINESS ITEMS 6.a AUTHORIZE ON-CALL ENGINEERING PROFESSIONAL SERVICES FOR THE DESIGN OF SPILLWAY WALL OFFSET REPAIRS 15 Recommendation: Authorize selection of a consultant from the City of San Luis Obispo’s Qualified Civil Engineering On-Call Consultant List to provide engineering professional services for the design of the Whale Rock Reservoir Spillway Offset Repairs and issuance of a purchase order, and any subsequent change orders, in an amount not to exceed the total authorized budget of $250,000. 6.b AUTHORIZE ON-CALL ENGINEERING PROFESSIONAL SERVICES FOR A SEISMIC STUDY AND GEOTECHNICAL INVESTIGATION OF WHALE ROCK DAM 17 Authorize selection of a consultant from the City of San Luis Obispo’s Qualified Civil Engineering On-Call Consultant List to provide engineering professional services including a seismic study and geotechnical investigation of the Whale Rock Dam, and issuance of a purchase order, and any subsequent change orders, in an amount not to exceed the total authorized budget of $550,000. Recommendation: Authorize selection of a consultant from the City of San Luis Obispo’s Qualified Civil Engineering On-Call Consultant List to provide engineering professional services including a seismic study and geotechnical investigation of the Whale Rock Dam, and issuance of a purchase order, and any subsequent change orders, in an amount not to exceed the total authorized budget of $550,000. 6.c AUTHORIZE ON-CALL ENGINEERING PROFESSIONAL SERVICES FOR A HYDROLOGIC AND HYDRAULIC PROBABLE MAXIMUM FLOOD STUDY 21 Authorize selection of a consultant from the City of San Luis Obispo’s Qualified Civil Engineering On-Call Consultant List for engineering professional services consisting of the preparation of a hydrologic and hydraulic probable maximum flood study, and issuance of a purchase order, and any subsequent change orders, in an amount not to exceed the total authorized budget of $500,000. Recommendation: Authorize selection of a consultant from the City of San Luis Obispo’s Qualified Civil Engineering On-Call Consultant List for engineering professional services consisting of the preparation of a hydrologic and hydraulic probable maximum flood study, and issuance of a purchase order, and any subsequent change orders, in an amount not to exceed the total authorized budget of $500,000. 6.d AUTHORIZE ON-CALL ENGINEERING PROFESSIONAL SERVICES FOR THE DESIGN OF STILLING BASIN IMPROVEMENTS 25 Authorize selection of a consultant from the City of San Luis Obispo’s Qualified Civil Engineering On-Call Consultant List to provide engineering professional services consisting of the design of stilling basin improvements, and issuance of a purchase order, and any subsequent change orders, in an amount not to exceed the total authorized budget of $120,000. Recommendation: Authorize selection of a consultant from the City of San Luis Obispo’s Qualified Civil Engineering On-Call Consultant List to provide engineering professional services consisting of the design of stilling basin improvements, and issuance of a purchase order, and any subsequent change orders, in an amount not to exceed the total authorized budget of $120,000. 6.e AUTHORIZE A CHANGE ORDER FOR THE WHALE ROCK PUMP STATION IMPROVEMENT PROJECT 29 Authorize a change order in the amount of $500,000 to the existing contract with Carollo Engineering for the Whale Rock Pump Station Improvement Project, resulting in a total project budget of $1,000,000. Recommendation: Authorize a change order in the amount of $500,000 to the existing contract with Carollo Engineering for the Whale Rock Pump Station Improvement Project, resulting in a total project budget of $1,000,000. 6.f FY 2024-25 FINANCIAL STATEMENTS 33 Receive a presentation of the 2024-25 Whale Rock Financial Statements. Recommendation: Receive and file Fiscal Year 2024-25 Whale Rock Financial Statements 6.g 2026-27 WHALE ROCK RESERVOIR BUDGET 81 Receive a presentation on the 2026-27 Budget for the Whale Rock Reservoir, including capital improvement projects and Commissioner contributions, and consider adopting the budget. Recommendation: Approve the 2026-27 Whale Rock Reservoir Budget. 7.COMMISSION REPORTS & COMMUNICATION Commissioners may make announcements, report on activities, or refer items to staff for study and follow-up at a subsequent Whale Rock Commission meeting. 8.ADJOURNMENT The next Regular Meeting of the Whale Rock Commission is scheduled in May 2027 at 3:30 p.m. in the Council Hearing Room at City Hall, 990 Palm Street, San Luis Obispo. LISTENING ASSISTIVE DEVICES are available -- see the Clerk The City of San Luis Obispo wishes to make all of its public meetings accessible to the public. Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities. Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to the City Clerk’s Office at (805) 781-7114 at least 48 hours before the meeting, if possible. Telecommunications Device for the Deaf (805) 781-7410. Agenda related writings or documents provided to the Whale Rock Commission are available for public inspection on the City’s website, under the Public Meeting Agendas web page: https://www.slocity.org/government/mayor-and- city-council/agendas-and-minutes. Meeting audio recordings can be found on the City’s website: https://opengov.slocity.org/WebLink/Browse.aspx?id=175388 Whale Rock Commission Minutes Whale Rock Commission Meeting – May 28, 2026 Agenda Item 3a – 2025 Whale Rock Commission Meeting Minutes FROM: Shawna Scott, Assistant Director of Utilities PREPARED BY Noah Evans, Whale Rock Reservoir Supervisor SUBJECT: 2025 Whale Rock Commission Meeting Minutes RECOMMENDATION Approve the Draft May 8, 2025, Whale Rock Commission Meeting Minutes. May 8, 2025 Whale Rock Commission Meeting CALL TO ORDER A Special Meeting of the Whale Rock Commission was called to order on Thursday, May 8, 2025, at 10:30 a.m. in the Council Hearing Room located at City Hall, 990 Palm Street, San Luis Obispo, by City Staff. ROLL CALL Present: Vice Chair Whitney McDonald, Secretary Luis Martinez, Commissioner - Emily Jackson, Commissioner Chad Worth Absent: Chair Erica A. Stewart Staff Present: Noah Evans, Whale Rock Supervisor; Mychal Boerman, Deputy Director-Water; Aaron Floyd, Utilities Director; Serenity Stuckenberg, Supervising Administrative Assistant PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA None --End of Public Comment-- CONSIDERATION OF MINUTES 1. WHALE ROCK COMMISSION MINUTES OF June 3, 2024 Page 7 of 103 Minutes Whale Rock Commission Meeting – May 8, 2025 ACTION: MOTION BY VICE CHAIR MCDONALD, SECOND BY COMMISSIONER WORTH 4-0-1 (Chair Stewart absent) to approve the minutes of the Regular Meeting of the Whale Rock Commission of June 3, 2024. No comment 2. ELECTION OF OFFICERS – ANNUAL ELECTION OF THE WHALE ROCK COMMISSION CHAIR, VICE CHAIR, AND SECRETARY Recommendation: Appoint Whitney McDonald as Commission Chair, Luis Martinez as Commission Vice-Chair, and Emily Jackson as Commission Secretary. ACTION: MOTION BY SECRETARY JACKSON, SECOND BY COMMISSIONER WORTH CARRIED 4-0-1, (Commissioner Stewart absent) that Vice Chair McDonald is appointed as Chair, Secretary Martinez is appointed as Vice-Chair and Commissioner Jackson as Secretary. The meeting was turned over to the new Chair, McDonald. No Comment PRESENTATION 3. 2024-25 ACCOMPLISHMENTS Noah Evans, Whale Rock Supervisor Provided a presentation of the 2024-25 accomplishments. 4. CATHODIC PROTECTION STUDY OF THE WHALE ROCK PIPELINE Receive a presentation outlining the 24-25 cathodic protection study of the Whale Rock pipeline. 5. PIPELINE ALTERNATIVE ANALYSIS Receive a presentation discussing the results of the alternative pipeline replacement study. BUSINESS ITEMS 6. FY 2023-24 FINANCIAL STATEMENTS Tavy Garcia, Senior Accountant, provided a presentation of the Fiscal Year 2023-24 Whale Rock Financial Statements. Public Comments: Page 8 of 103 Minutes Whale Rock Commission Meeting – May 8, 2025 None --End of Public Comment— ACTION: MOTION BY CHAIR MCDONALD, SECOND BY COMMISSIONER WORTH 4-0-1, (Chair Stewart absent) to accept the fiscal year 2023-24 Financial Statements as presented. 7. 2025-26 WHALE ROCK RESERVOIR BUDGET Mychal Boerman, Deputy Director, presented the 2025-26 Whale Rock Reservoir budget, including capital improvement projects (CIP) and Commission member contributions and consider budget adoption. Public Comments: None --End of Public Comment-- ACTION: MOTION BY COMMISSIONER VICE CHAIR MARTINEZ SECOND BY SECRETARY JACKSON, 4-0-1, (Chair Stewart absent) to adopt the 2025-26 Whale Rock Reservoir Budget. COMMISSION REPORTS & COMMUNICATION None ADJOURNMENT Vice Chair McDonald adjourned the meeting at 11:31 a.m. Page 9 of 103 Page 10 of 103 City of San Luis Obispo, Title, Subtitle Whale Rock Commission Report Whale Rock Commission Meeting – May 28, 2026 Agenda Item 4a– Election of Whale Rock Commission Officers FROM: Shawna Scott, Assistant Director of Utilities PREPARED BY: Noah Evans, Whale Rock Reservoir Supervisor SUBJECT: Election of Whale Rock Commission Officers RECOMMENDATION Appoint Luis Martinez as Commission Chair, Emily Jackson as Commission Vice Chair, and Chad Worth as Commission Secretary. DISCUSSION Historically, the chair position rotates among the Commissioners. At the pleasure of the Commissioners, the next rotation would be Chair; Luis Martinez, Vice Chair; Emily Jackson, Secretary; Chad Worth. 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 2026-27 Whale Rock Commission meeting. Future Commission Officer Rotation Schedule Year Chair Vice Chair Secretary 2025-26 (Current Year) City of SLO City Manager CMC Representative City of SLO Finance Director 2026-27 (Upcoming Year) 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 2029-30 City of SLO Mayor City of SLO City Manager CMC Representative 2030-31 City of SLO City Manager CMC Representative City of SLO Finance Director Page 11 of 103 City of San Luis Obispo, Title, Subtitle Whale Rock Commission Report Whale Rock Commission Meeting – May 28, 2026 Agenda Item 4a– Election of Whale Rock Commission Officers ENVIRONMENTAL REVIEW The California Environmental Quality Act (CEQA) does not apply to the recommended action, because the action does not constitute a “Project” under CEQA Guidelines Sec 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. The proposed rotation is consistent with the rotation previously approved by the commission at the 2025 Whale Rock Commission Meeting and modifications may result in discrepancies related to fair distribution of positions. ATTACHMENTS No attachments. Page 12 of 103 City of San Luis Obispo, Title, Subtitle Whale Rock Commission Report Whale Rock Commission Meeting – May 28, 2026 Agenda Item 5a – 2025-26 Accomplishments FROM: Shawna Scott, Assistant Director of Utilities PREPARED BY: Noah Evans, Whale Rock Reservoir Supervisor SUBJECT: 2025-26 Accomplishments RECOMMENDATION No action is requested of the commission for this update/presentation. DISCUSSION Whale Rock staff are responsible for the maintenance, repair, and operation of all Whale Rock facilities and infrastructure, including the dam, spillway, intake structure, pump stations, pipeline, public access areas, and associated infrastructure. Significant accomplishments for 2025-26 include: 1. Stilling basin draining, cleaning and inspection (Division of Safety of Dams [DSOD] requirement). 2. Fence replacement. 3. Tule removal (DSOD requirement). 4. Public access kiosk construction. 5. Water meter replacement. 6. Pipeline blow-off valve replacement. 7. Intake valve #4 repairs (DSOD Requirement). 8. Onboarding of new staff. A detailed presentation of the 2025-26 Whale Rock accomplishments will be provided during the commission meeting. STILLING BASIN DRAIN CLEAN, AND INSPECT PROJECT Page 13 of 103 Page 14 of 103 City of San Luis Obispo, Title, Subtitle Whale Rock Commission Report Whale Rock Commission Meeting – May 28, 2026 Agenda Item 6a – Authorize On-call Engineering Professional Services for the Design of Spillway Wall Offsets Repair FROM: Shawna Scott, Assistant Director of Utilities PREPARED BY: Noah Evans, Whale Rock Reservoir Supervisor SUBJECT: AUTHORIZE ON-CALL ENGINEERING PROFESSIONAL SERVICES FOR THE DESIGN OF SPILLWAY WALL OFFSET REPAIRS RECOMMENDATION Authorize selection of a consultant from the City of San Luis Obispo’s Qualified Civil Engineering On-Call Consultant List to provide engineering professional services for the design of the Whale Rock Reservoir Spillway Offset Repairs and issuance of a purchase order, and any subsequent change orders, in an amount not to exceed the total authorized budget of $250,000. DISCUSSION Background In July 2025, staff received the Annual Inspection Report from the Division of Safety of Dams (DSOD). In this letter, the DSOD directed the Whale Rock Commission to grind down the offsets1 on the upper spillway wall seams to improve water flow and to reduce pressure that could force water into the spillway wall seams and cause erosion or displacement. The City of San Luis Obispo Utilities engineering team reviewed the DSOD direction and recommended further evaluation based on concerns that grinding down the concrete could expose reinforcing steel and weaken the spillway wall. To understand the impacts of grinding the spillway walls to reduce the offsets, staff worked with the HDR Engineering team who was onsite to perform the Stilling Basin condition assessment. HDR Engineering staff used a Ground Penetrating Radar tool to scan the spillway 1 Spillway wall offsets are structural misalignments or gaps, often causing flow discontinuities that can lead to cavitation damage. In dams, these offsets are typically surface irregularities, joints, or cracks that trigger cavitation. WHALE ROCK SPILLWAY WALL OFFSET Page 15 of 103 City of San Luis Obispo, Title, Subtitle Whale Rock Commission Report Whale Rock Commission Meeting – May 28, 2026 Agenda Item 6a – Authorize On-call Engineering Professional Services for the Design of Spillway Wall Offsets Repair wall and determine the thickness of the concrete covering the reinforcing steel. The results of the scan confirmed that grinding could expose the reinforcing steel or reduce the material's thickness, leading to cracking or spalling of the concrete. This finding indicates that grinding the concrete walls is not an acceptable method for reducing spillway wall offsets. In place of grinding the offsets, staff proposed adding material that will reduce the spillway wall offsets, while preserving the designed thickness that protects the reinforcing steel. To achieve long-term success with the repairs, a firm experienced in concrete spillway repairs should design the project and specify the products to be used in the repair. ENVIRONMENTAL REVIEW This project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Sections 15301 (Existing Facilities) and 15302 (Replacement or Reconstruction). The Design of Spillway Wall Offset Repairs will have the same purpose as the existing spillway walls and will not alter the Reservoir's capacity or result in an expansion of use. FISCAL IMPACT Design of Spillway Wall Offset Repairs Funding Category Contribution Source Amount Budgeted Amount Spent Capital Asset Expense 2026-27 CIP Contributions $250,000 $0 ALTERNATIVES The Commission may deny the staff recommendation and direct staff to make the spillway wall offset repairs by grinding down the spillway walls. Implementation of this alternative may be detrimental to the spillway walls' performance and presents public health and safety risks. Alternatively, the Commission may direct staff not to proceed with smoothing the spillway wall offsets. Not complying with the DSOD’s request to smooth the spillway wall offsets could cause the DSOD to impose a reduction in the volume of water Whale Rock Dam is permitted to impound. ATTACHMENTS No attachments. Page 16 of 103 City of San Luis Obispo, Title, Subtitle Whale Rock Commission Report Whale Rock Commission Meeting – May 28, 2026 Agenda Item 6b – Authorize On-call Engineering Professional Services for a Seismic Study and Geotechnical Investigation of Whale Rock Dam FROM: Shawna Scott, Assistant Director of Utilities PREPARED BY: Noah Evans, Whale Rock Reservoir Supervisor SUBJECT: AUTHORIZE ON-CALL ENGINEERING PROFESSIONAL SERVICES FOR A SEISMIC STUDY AND GEOTECHNICAL INVESTIGATION OF WHALE ROCK DAM RECOMMENDATION Authorize selection of a consultant from the City of San Luis Obispo’s Qualified Civil Engineering On-Call Consultant List to provide engineering professional services including a seismic study and geotechnical investigation of the Whale Rock Dam, and issuance of a purchase order, and any subsequent change orders, in an amount not to exceed the total authorized budget of $550,000. DISCUSSION Background In September of 2025 staff received a letter from the Division of Safety of Dams (DSOD) requiring several studies and assessments of the Whale Rock Dam (Attachment A). In this letter, the DSOD directs the Whale Rock Commission to perform a “high-quality subsurface exploration” of the dam, followed by a “static and seismic stability evaluation” using “modern methods and standards for dams”. Seismic and stability evaluations and subsurface exploration of the dam have not been completed using modern technology and staff understand that modern methods for analysis and modeling will result in better understanding of the stability of the dam during emergency events such as an earthquake. The results of these studies will be used to confirm the stability of the dam and to identify potential safety improvements, if necessary. WHALE ROCK SPILLWAY WALL OFFSET Page 17 of 103 City of San Luis Obispo, Title, Subtitle Whale Rock Commission Report Whale Rock Commission Meeting – May 28, 2026 Agenda Item 6b – Authorize On-call Engineering Professional Services for a Seismic Study and Geotechnical Investigation of Whale Rock Dam ENVIRONMENTAL REVIEW The proposed study is exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15306 (Information Collection), because the methods for data collection, evaluation, and analysis will not result in a serious or major disturbance to an environmental resource and are necessary to inform future action(s). This exemption includes studies leading to an action which a public agency has not yet approved, adopted, or funded. The results of the study will identify potential safety improvements, and these potential projects will be evaluated for CEQA compliance. FISCAL IMPACT Seismic Study and Geotechnical Investigation of Whale Rock Dam Funding Category Contribution Source Amount Budgeted Amount Spent Capital Asset Expense 2026-27 CIP Contributions $550,000 $0 ALTERNATIVES The Whale Rock Commission can request that staff issue a Request for Proposals (RFP) for this work rather than utilize an on-call consultant. On-call consultants have been selected through a competitive qualifications-based process and use of the on- call consultant list expedites delivery of this work effort, with the intention of providing these types of engineering services. Advertisement of an RFP requires additional staff resources and would delay the project by approximately two months. Attachments: A - September 5, 2025, letter from the Division of Safety of Dams Page 18 of 103 Docusign Envelope lD: E6966E92-1 D48-4478-8O37-AOB402B0FDEA STATE OF CALIFORNIA - CALIFORNIA NATURAL RESOURCES AGENCY GAVIN NEWSOM, Governor DEPARTMENT OF WATER RESOURCES DIVISION OF SAFETY OF DAMS 2720 GAIEWAY OAKS DRIVE, SUITE 3OO SACRAMENTO, CA 95833-3500 September 5,2025 Mr. Aaron Floyd, Deputy Director Water Division Whale Rock Commission 879 Morro Street San Luis Obispo, California 93401 Whale Rock Dam, No. 1-40 San Luis Obispo Countv Dear Mr. Floyd: This is in reply to two letters dated June 14, 2019, and December 12,2024,with multiple enclosures, from Whale Rock Commission (WRC) to the Division of Safety of Dams (DSOD) in response to DSOD's letter dated May 24,2017, requesting a comprehensive condition assessment of the spillway at Whale Rock Dam. The enclosures reviewed for this response include the SpillwayAssessmenf report (Spillway Report), by HDR Engineering, lnc. (HDR), dated May 20, 2019, and a final video survey of the repaired spillway underdrain pipes by Nor-Cal Pipeline Services, dated October 5, 2023. As discussed in an August 7,2025, call with Whale Rock Supervisor Mr. Noah Evans, DSOD has reviewed the enclosures and has completed an independent comprehensive review of the dam. From these reviews, DSOD has identified potential dam safety concerns related to the dam's seismic stability and hydrologic capacity that will require WRC to perfornr a comprehensive assessment of the dam system. At a minimum, this comprehensive assessment must include the following: 1. A static and seismic stability evaluation of the dam using modern methods and standards for dams. 2. A new high-quality subsurface exploration prior to the required seismic stability evaluation since the past geotechnical investigations have not thoroughly characterized the embankment and foundation alluvium. DWR 9004 (New 8/25) Page 19 of 103 Docusign Envelope lD: E6966E92-1 D484478-8O37-A6B402B0FDEA Mr. Floyd September 5,2025 Page 2 3. A hydrologic and hydraulic study to verify that the dam can pass the Probable Maximum Flood (PMF) without overtopping. This needs to include visually inspecting the condition of the stilling basin and evaluating the feasibility of inspecting the spillway chute drains that were not previously inspected. Following the hydraulic analysis, WRC must assess whether the current condition of the spillway drainage system, given the observed presence of grout intrusion, reduces the spillway's functionality to safely pass the PMF. WRC must submit a plan and schedule for performing this comprehensive assessment to DSOD by December 31 ,2025. This plan and schedule needs to incorporate a plan for filing an alteration application for the required geotechnical exploration along with the work plan and associated filing fees. ln addition, HDR recommended several maintenance-level repairs in the Spillway Report be performed, which include sealing of cracks and joints, repairing of spalls, and grinding down wall offsets at joints. As documented during DSOD's recent periodic maintenance inspection, these repairs have been satisfactorily completed with the exception of grinding down adverse offsets at spillway walljoints. As required in the recent inspection report, WRC submitted an August 19,2025,letter with a plan and schedule to complete this work, which is currently under DSOD review. HDR also identified an area of seepage in the spillway at Station 2+77. WRC must inspect this area at least monthly, and any observations of seepage or turbidity must be incorporated into the dam's annual instrumentation report. WRC needs to continue performing regular spillway inspections and maintenance, including monitoring previous repairs and sealing developing cracks to ensure that the spillway can safely pass flows, and notify DSOD of any change to the spillway, including the projection of spill events. lf you have any questions or need additional information, you may contact Dam Safety Engineer Richard Keizer at (916) 612-4802 or Project Engineer lan Maki at (916) 820-77e5. Sincerely, Sh."utu- h^rs for Erik J. Malvick, Ph.D., P.E., G.E Division Manager Division of Safety of Dams DWR 9004 (New 8/25) Page 20 of 103 City of San Luis Obispo, Title, Subtitle Whale Rock Commission Report Whale Rock Commission Meeting – May 28, 2026 Agenda Item 6c – Authorize On-call Engineering Professional Services for a Hydrologic and Hydraulic Probable Maximum Flood Study FROM: Shawna Scott, Assistant Director of Utilities PREPARED BY: Noah Evans, Whale Rock Reservoir Supervisor SUBJECT: AUTHORIZE ON-CALL ENGINEERING PROFESSIONAL SERVICES FOR A HYDROLOGIC AND HYDRAULIC PROBABLE MAXIMUM FLOOD STUDY RECOMMENDATION Authorize selection of a consultant from the City of San Luis Obispo’s Qualified Civil Engineering On-Call Consultant List for engineering professional services consisting of the preparation of a hydrologic and hydraulic probable maximum flood study, and issuance of a purchase order, and any subsequent change orders, in an amount not to exceed the total authorized budget of $500,000. DISCUSSION Background During September 2025, staff received a letter from Whale Rock’s Regulatory Authority, the Division of Safety of Dams (DSOD) (Attachment A). In this letter, the DSOD directs the Whale Rock Commission to perform a hydrologic and hydraulic study to verify that the Whale Rock Dam and spillway can withstand a Probable Maximum Flood (PMF) event without overtopping. The PMF is the theoretical upper limit of flood runoff, representing the most severe, yet feasible, combination of meteorological and hydrological conditions in a specific drainage basin. It is derived from the Probable Maximum Precipitation (PMP) to ensure, with high certainty, that infrastructure like dams and spillways can withstand the largest potential, though extremely rare, flood event. The DSOD has directed the Whale Rock Commission to conduct this study to verify that the original PMF used to design the Whale Rock Dam and spillway remains applicable, representative of current weather patterns, and will not result in overtopping during a PMF event. WHALE ROCK DAM SPILLING DURING 2023 Page 21 of 103 City of San Luis Obispo, Title, Subtitle Whale Rock Commission Report Whale Rock Commission Meeting – May 28, 2026 Agenda Item 6c – Authorize On-call Engineering Professional Services for a Hydrologic and Hydraulic Probable Maximum Flood Study ENVIRONMENTAL REVIEW The California Environmental Quality Act (CEQA) does not apply to the recommended action in this report because the action does not constitute a “Project” under CEQA Guidelines Section 15378 . The action is limited to a hydrologic and hydraulic study and does not include any physical effects on the environment. FISCAL IMPACT Hydrologic and Hydraulic Study to Verify the Dam Can Pass the Probable Maximum Flood Funding Category Contribution Source Amount Budgeted Amount Spent Capital Asset Expense 2026-27 CIP Contributions $500,000 $0 ALTERNATIVES The Commission may direct staff not to use the City of San Luis Obispo’s Qualified Civil Engineering On-Call Consultant List and to release a Request for Proposals (RFP). Firms on the Qualified Civil Engineering on -Call Consultant List have been selected through a competitive qualifications-based bidding process, and have previously performed studies and designed projects for Whale Rock, demonstrating their expertise and knowledge of the facility. Advertisement of an RFP requires additional staff resources and would delay the DSOD-mandated study by approximately two months. Attachments: A - September 5, 2025, letter from the Division of Safety of Dams Page 22 of 103 Docusign Envelope lD: E6966E92-1 D48-4478-8O37-AOB402B0FDEA STATE OF CALIFORNIA - CALIFORNIA NATURAL RESOURCES AGENCY GAVIN NEWSOM, Governor DEPARTMENT OF WATER RESOURCES DIVISION OF SAFETY OF DAMS 2720 GAIEWAY OAKS DRIVE, SUITE 3OO SACRAMENTO, CA 95833-3500 September 5,2025 Mr. Aaron Floyd, Deputy Director Water Division Whale Rock Commission 879 Morro Street San Luis Obispo, California 93401 Whale Rock Dam, No. 1-40 San Luis Obispo Countv Dear Mr. Floyd: This is in reply to two letters dated June 14, 2019, and December 12,2024,with multiple enclosures, from Whale Rock Commission (WRC) to the Division of Safety of Dams (DSOD) in response to DSOD's letter dated May 24,2017, requesting a comprehensive condition assessment of the spillway at Whale Rock Dam. The enclosures reviewed for this response include the SpillwayAssessmenf report (Spillway Report), by HDR Engineering, lnc. (HDR), dated May 20, 2019, and a final video survey of the repaired spillway underdrain pipes by Nor-Cal Pipeline Services, dated October 5, 2023. As discussed in an August 7,2025, call with Whale Rock Supervisor Mr. Noah Evans, DSOD has reviewed the enclosures and has completed an independent comprehensive review of the dam. From these reviews, DSOD has identified potential dam safety concerns related to the dam's seismic stability and hydrologic capacity that will require WRC to perfornr a comprehensive assessment of the dam system. At a minimum, this comprehensive assessment must include the following: 1. A static and seismic stability evaluation of the dam using modern methods and standards for dams. 2. A new high-quality subsurface exploration prior to the required seismic stability evaluation since the past geotechnical investigations have not thoroughly characterized the embankment and foundation alluvium. DWR 9004 (New 8/25) Page 23 of 103 Docusign Envelope lD: E6966E92-1 D484478-8O37-A6B402B0FDEA Mr. Floyd September 5,2025 Page 2 3. A hydrologic and hydraulic study to verify that the dam can pass the Probable Maximum Flood (PMF) without overtopping. This needs to include visually inspecting the condition of the stilling basin and evaluating the feasibility of inspecting the spillway chute drains that were not previously inspected. Following the hydraulic analysis, WRC must assess whether the current condition of the spillway drainage system, given the observed presence of grout intrusion, reduces the spillway's functionality to safely pass the PMF. WRC must submit a plan and schedule for performing this comprehensive assessment to DSOD by December 31 ,2025. This plan and schedule needs to incorporate a plan for filing an alteration application for the required geotechnical exploration along with the work plan and associated filing fees. ln addition, HDR recommended several maintenance-level repairs in the Spillway Report be performed, which include sealing of cracks and joints, repairing of spalls, and grinding down wall offsets at joints. As documented during DSOD's recent periodic maintenance inspection, these repairs have been satisfactorily completed with the exception of grinding down adverse offsets at spillway walljoints. As required in the recent inspection report, WRC submitted an August 19,2025,letter with a plan and schedule to complete this work, which is currently under DSOD review. HDR also identified an area of seepage in the spillway at Station 2+77. WRC must inspect this area at least monthly, and any observations of seepage or turbidity must be incorporated into the dam's annual instrumentation report. WRC needs to continue performing regular spillway inspections and maintenance, including monitoring previous repairs and sealing developing cracks to ensure that the spillway can safely pass flows, and notify DSOD of any change to the spillway, including the projection of spill events. lf you have any questions or need additional information, you may contact Dam Safety Engineer Richard Keizer at (916) 612-4802 or Project Engineer lan Maki at (916) 820-77e5. Sincerely, Sh."utu- h^rs for Erik J. Malvick, Ph.D., P.E., G.E Division Manager Division of Safety of Dams DWR 9004 (New 8/25) Page 24 of 103 City of San Luis Obispo, Title, Subtitle Whale Rock Commission Report Whale Rock Commission Meeting – May 28, 2026 Agenda Item 6d – Authorize On-call Engineering Professional Services for the Design of Stilling Basin Improvements FROM: Shawna Scott, Assistant Director of Utilities PREPARED BY: Noah Evans, Whale Rock Reservoir Supervisor SUBJECT: AUTHORIZE ON-CALL ENGINEERING PROFESSIONAL SERVICES FOR THE DESIGN OF STILLING BASIN IMPROVEMENTS RECOMMENDATION Authorize selection of a consultant from the City of San Luis Obispo’s Qualified Civil Engineering On-Call Consultant List to provide engineering professional services consisting of the design of stilling basin improvements, and issuance of a purchase order, and any subsequent change orders, in an amount not to exceed the total authorized budget of $120,000. DISCUSSION Background Whale Rock Dam’s stilling basin is located at the base of the concrete spillways and is designed to dissipate the energy of high- velocity water and prevent scouring and structural erosion that could damage the spillway or the dam. In recent years, the Reservoir has spilled twice, releasing water through the stilling basin. When the Reservoir was spilling, staff observed water backing up in the stilling basin before flowing downstream. During the 2025 Stilling Basin Drain, Clean, and Inspect project, the basin was drained, exposing significant sediment and vegetation just downstream of the structure's end. When Whale Rock Reservoir releases water, flows are slowed by vegetation and sediment, leading to high water levels and erosion below the stilling basin. To restore downstream water flows, sediment and vegetation need to be removed downstream of the stilling basin, restoring the stilling basin to its designed discharge capacity. SPILLWAY AND STILLING BASIN DURING HIGH FLOWS Page 25 of 103 City of San Luis Obispo, Title, Subtitle Whale Rock Commission Report Whale Rock Commission Meeting – May 28, 2026 Agenda Item 6d – Authorize On-call Engineering Professional Services for the Design of Stilling Basin Improvements Based on review by the Utilities Branch’s Engineering and Planning team, staff recommend retaining an engineering consultant to design a project to restore the stream bed's original condition and topography below the stilling basin. The effort will remove obstructions in the stream bed to improve water flow and add riprap or boulders to prevent future erosion of the structure. ENVIRONMENTAL REVIEW The proposed action is limited to design only at this phase. Once designed, the City will retain an environmental consultant to prepare the California Environmental Quality Act (CEQA) analysis and determination for the Project. The previously mentioned Stilling Basin Drain, Clean, and Inspect project included adoption of an Initial Study Mitigated Negative Declaration, and permits and authorizations from regulatory agencies. While no special-status species were observed during implementation of the Project, it is anticipated that implementation of the restoration project may result in impacts to wetland and riparian habitat, and may potentially impact special-status species, cultural and tribal cultural resources, and water quality. Prior to implementation of the project, staff will prepare analysis and documentation in compliance with CEQA, and obtain all required regulatory permits and authorizations. The Whale Rock Commission’s approval to move forward with the project design does not commit the Commission to implementation of the Project, and the Whale Rock Commission will be required to consider the pending CEQA determination prior to approving and authorizing implementation of the Project. SEDIMENT AND VEGETATION BELOW THE STILLING BASIN Page 26 of 103 City of San Luis Obispo, Title, Subtitle Whale Rock Commission Report Whale Rock Commission Meeting – May 28, 2026 Agenda Item 6d – Authorize On-call Engineering Professional Services for the Design of Stilling Basin Improvements FISCAL IMPACT Design of Stilling Basin Maintenance Funding Category Contribution Source Amount Budgeted Amount Spent Capital Asset Expense 2026-27 CIP Contributions $120,000 $0 ALTERNATIVES The Commission may direct staff not to use the City of San Luis Obispo’s Qualified Civil Engineering On-Call Consultant List and to release an RFP. Firms on the Qualified Civil Engineering on-Call Consultant List have been selected through a competitive qualifications-based bidding process. Staff would determine the appropriate consultant from the On-Call list based on their specific experience successfully performing studies and designing projects for dam spillway and stilling basins, and demonstration of their expertise and knowledge of the Whale Rock Reservoir facility. Attachments: No attachments. Page 27 of 103 Page 28 of 103 Staff Report Whale Rock Commission Meeting – May 28, 2026 Agenda Item 6e – Authorize a Change Order for the Whale Rock Pump Station Improvement Project FROM: Shawna Scott, Assistant Director of Utilities PREPARED BY: Noah Evans, Whale Rock Reservoir Supervisor SUBJECT: AUTHORIZE A CHANGE ORDER FOR THE WHALE ROCK PUMP STATION IMPROVEMENT PROJECT RECOMMENDATION Authorize a change order in the amount of $500,000 to the existing contract with Carollo Engineering for the Whale Rock Pump Station Improvement Project, resulting in a total project budget of $1,000,000. 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 built, 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 commission member agencies. The pump station roofs, pavement, and fencing need to be improved as these assets range from thirty-three to sixty-five years old. The generator at Pump Station A failed during the early 2000s, and a portable generator has been on loan from the City of San Luis Obispo for th e past five years to provide power to Pump Station A when PG&E is unavailable. In 2024, the Whale Rock Commission approved $500,000 to perform a condition study and design improvements for the two Whale Rock Pump Stations. An RFQ was issued for the Project, and based on a qualifications-based process, Carollo Engineering was the selected firm. Carollo Engineering’s proposal exceeded the Pump Station A Page 29 of 103 approved budget for the study (condition analysis) and design phases of the Project. Therefore, staff authorized Carollo to proceed with the study phase of the project only. Carollo Engineering will complete the condition analysis study during the summer of 2026, and staff aims to maintain project momentum by moving into the design phase of pump station improvements. Based on the current status of the condition analysis study, staff estimate that design of pump station improvements will require a budget of approximately $800,000, bringing the total cost of the study and design phases to $1,000,000. Once the improvements are designed, staff will return to the Whale Rock Commission to consider future projects for construction. 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 prior to the construction phase of the project, depending on the recommendations of the study and final design. If additional analysis is necessary, this information will be presented to the Commission upon consideration of specific projects and the associated CEQA determination(s). FISCAL IMPACT Study and Design of Whale Rock Pump Station Improvements Funding Category Contribution Source Amount Budgeted Amount Spent Amount Available Capital Asset Expense 2024-25 CIP Contributions $500,000 $195,8501 $304,150 Capital Asset Expense 2026-27 CIP Contributions $500,000 $0 $500,000 Total Available Budget $804,1502 ALTERNATIVES Direct staff not to move forward with the design for pump station improvements with Carollo Engineering. Direct staff to continue delivering water to Whale Rock Commission Members using the existing pump station equipment. Staff recommend moving forward with the design for pump station improvements, as anticipated upgrades and improvements will reduce stress to the Whale Rock Pipeline, facilitate water delivery requests, and allow for multiple pumps to be operated by generator power. If cessation or delay of the Project occurs, these benefits and necessary improvements would not be realized. 1 $195,850 is the total cost of the condition assessment phase of the project. 2 $800,000 is the total cost of the design phase of the project. Page 30 of 103 ATTACHMENTS No attachments. Page 31 of 103 Page 32 of 103 Whale Rock Commission Report Whale Rock Commission Meeting – May 28, 2025 Agenda Item 6f – FY 2024-25 Financial Statements FROM: Shawna Scott, Assistant Director of Utilities PREPARED BY: Mychal Boerman, Utilities Deputy Director – Water Tavy Garcia – Senior Accountant SUBJECT: FY 2024-25 Financial Statements RECOMMENDATION Receive and file Fiscal Year 2024-25 Whale Rock Financial Statements DISCUSSION Summary Each year the City receives an independent audit of the Whale Rock Commission’s financial statements. The Whale Rock Commission 2024-25 Financial Statements, as well as the auditor’s reports, are provided in Attachment A of this report. 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 2023-24 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 (Attachment A, Whale Rock Commission Financial Statements, pages 39-40). The City’s Finance Department will work to correct these two issues over the next year. 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 33 of 103 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 – 2024-25 Whale Rock Commission Financial Statements for Fiscal Years ended June 30, 2025, and 2024 Page 34 of 103 Whale Rock Commission Financial Statements For the Fiscal Years ended June 30, 2025 and 2024 Page 35 of 103 Page 36 of 103 Whale Rock Commission Fiscal Years Ended June 30, 2025 and 2024 Table of Contents Independent Auditor’s Report 1-3 Management’s Discussion and Analysis 5-15 Basic Financial Statements Government-wide Financial Statements: Statements of Net Position 21 Statements of Activities 22 Fund Financial Statements Balance Sheets 25 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 26 Statements of Revenues, Expenditures, and Changes in Fund Balance 27 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance of Governmental Funds to the Statement of Activities 28 Notes to the Financial Statements 29-32 Required Supplementary Information Budgetary Comparison Schedule 35 Notes to Required Supplementary Information 36 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 37-38 Schedule of Findings and Responses 39-40 Status of Prior Year Findings 41-42 Page 37 of 103 This page intentionally left blank. Page 38 of 103 INDEPENDENT AUDITOR’S REPORT To the Members of the Whale Rock Commission San Luis Obispo, California Report on the Audit of the Financial Statements Opinion We have audited the accompanying financial statements of the governmental activities and general fund of the Whale Rock Commission (Commission), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the Commission’s basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities and general fund information of the Commission, as of June 30, 2025, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Commission and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements The Commission’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Commission’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Page 39 of 103 To the Members of the Whale Rock Commission San Luis Obispo, California Page 2 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Commission’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Commission’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison information on pages 5-15 and 35-36 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 2 Page 40 of 103 To the Members of the Whale Rock Commission San Luis Obispo, California Page 3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated April 6, 2026, on our consideration of the Commission’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Commission’s internal control over financial reporting and compliance. Badawi & Associates, CPAs Emeryville, California April 6, 2026 3 Page 41 of 103 This page intentionally left blank. 4 Page 42 of 103 Management’s Discussion & Analysis This section provides a narrative overview and analysis of the financial activities of the Whale Rock Commission for the fiscal years ended June 30, 2025 and 2024. It should be read in conjunction with the accompanying basic financial statements. Overview of the Financial Statements The financial statements are presented in accordance with Governmental Accounting Standards Board Statement No. 34. The basic financial statements are comprosed of three components: 1. Government-wide financial statements 2. Fund financial statements and 3. Notes to the financial statements. Government-Wide Financial Statements This set of statements is designed to provide readers with a broad overview of the Commission’s finances, in a manner similar to a private-sector business. The Statement of Net Position presents information on all the Commission’s assets and liabilities, with the differnce reported as net position. Over time, increases or decreases in net position may serve as an indicator of whether the finacial position of the Commission is improving or declining. The Statement of Activities presents information showing how the Commission’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activites or objectives. The Commission, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information reflects financial resources available in the near future to finance the Whale Rock Fund. All of the activities of the Commission are accounted for in one fund. Whale Rock Commission The Whale Rock Fiduciary (Custodial) fund is used to account for the Commission’s ongoing operating activities. Ownership in the Reservoir is as follows: 55.05%, City of San Luis Obispo; 33.71%, California Polytechnic State University; and 11.24%, California Men’s Colony. The City’s share of the Commission’s expenses is recorded as expenses of the Water Enterprise Fund. All receipts and disbursement of the Commission are included in the fiduciary fund. 5 Page 43 of 103 Management’s Discussion & Analysis Financial Highlights The following outlines financial highlights for the year:  The assets of the Commission exceeded its liabilities at June 30, 2025, by $7.2 million (net position). The Commission’s unrestricted net position increased by just over $1 million compared with FY 2023-24.  Total assets increased by $990,000 or 15%, to just over $7.4 million during FY 2024-25. This increase was primarily attributable to higher balances in total cash and accounts receivable at June 30, 2025, which were $570,000 and $392,000 higher, respectively, compared with balances at the end of the prior year. These increases reflect stable service revenue, within 1.6% year over year, combined with significatnly less capital project activity during FY 2024-25. Capital activity is dependent on Whale Rock’s capital improvement plan and can therefore flutuate significantly from year to year.  For FY 2024-25, total program revenues, including basic operating charges and water distribution income, amounted to nearly $2.1 million, which was consistent with totals from the prior year. Meanwhile, general revenues including investment earnings, Capital Improvement Plan (CIP) contributions, and other revenues totaled approximately $1.04 million. This represents increases of 0.2% and 8.1% respectively.  Water Distribution revenues decreased from $834,000 in FY 2023-24 to $772,000 in FY 2024-25. The stronger distribution revenues in the prior year were due to increased demand while the Naciemento pipepline was down for repairs. This pipeline has since been reopened via a temporary pipleline bypass while repairs continue into FY 2024- 25.  Use of money and property revenues increased by $47,000 to nearly $315,000 for FY 2024-25, representing a 17.5% increase due to favorable market conditions that supported strong interest earnings on the Commission’s invested cash during the fiscal year.  Total expenses of $2.1 million were lower in FY 2024-25 and represented a decrease of $589,000 compared with the prior year. As noted above, this decrease was primarily driven by the timing of project-related expenditures, including major maintenance activities, as well as an decreases in electric service needs following the reopening of the Naciemento pipeline during the fiscal year. Depreciation meanwhile, remained consistent with the prior year. 6 Page 44 of 103 Management’s Discussion & Analysis Operational Highlights During FY 2024-25, Whale Rock staff maintained the reservoir and related facilities, delivered water, and participated in long-term capital improvement projects. The following are the operational highlights that occurred during the fiscal year. Intake Structure Inspection Intake valves allow the highest quality water to enter the pipeline from a selected depth. Whale Rock has five intake valves, and intake valve four ceased to function in the closed position. Intake valve four is located under 110 feet of water. Inspecting and repairing the valve presents challenges in a hazardous environment.To facilitate access, staff may drain the intake structure to allow a human to enter. The downside of this action is that Whale Rock cannot deliver water while the intake structure is drained. Additionally, the hazards of confined space and engulfment (drowning) are associated with humans working inside this structure. To mitigate the safety hazards associated with entering the intake structure, staff worked with AQUEOS to operate a remotely operated vehicle (ROV) to inspect the malfunctioning valve underwater. AQUEOS staff provided a video inspection of intake valve four. With the assistance of air introduced to the plumbing, air bubbles led the ROV operator to a broken pipe fitting. The fractured pipe fitting prevented the valve control system from operating intake valve four. The ROV inspection was a success, as staff identified the problem, and will develop a project to repair the pipe fitting. The project may utilize divers to make repairs at depth, or a scheduled Whale Rock shutdown could allow the intake structure to be drained of water so that people can enter and make repairs. Cathodic Protection Survey of the Whale Rock Pipeline Cathodic protection is a method used in various industries that uses a low electrical current to prevent corrosion of metal structures such as pipelines, tanks, steel-pier piles, and offshore oil platforms. Cathodic protection has been used to protect pipelines since the 1930s. In January, staff worked with a cathodic protection consultant to understand Whale Rock’s cathodic protections system (CPS) condition. The consultant is authoring a report describing the condition of the reservoir’s CPS. The report may include recommendations for improving the CPS to achieve the maximum service life of the Whale Rock pipeline. ROV PRE-INSPECTION CATHODIC PROTECTION TEST STATION FOR THE WHALE ROCK PIPELINE 7 Page 45 of 103 Management’s Discussion & Analysis Drain Pluming Improvements The dam and the hillside adjacent to the spillway have drains installed to remove water pressure that may build up within the dam. During the early 1980s, staff recorded higher than anticipated pressures inside the northern portion of the Dam. The Commission’s geoloic consultant recommended that drains be installed to reduce the water pressure and to maintain the safety of the Dam’s structure. Since the drains were installed in the 1980s, staff have recorded the water flow of the drain as part of weekly observations of the dam. Over the years, the plumbing of the drain systems has aged, and staff recognized the opportunity to make improvements to the drain systems. Staff have installed new piping and outlet works on one of the drain systems. The team replaced the aging pipe supports and piping on the second drain system. The team’s efforts have resulted in a drainage system that promotes accurate water measurements and will serve the Whale Rock facility for many years. New John Deere Tractor at Whale Rock Staff team recently took delivery of a new John Deere utility tractor. Whale Rock staff uses the tractor to mow and maintain dirt roads and trails of the public access area and approximately three miles of reservoir access road that is closed to the public. Other uses include pipeline easement clearing and general grading work to repair erosion or build up access roads. The new tractor replaces a similar John Deer machine that has been in service since 2004. We look forward to using the new tractor to maintain the facility for the next twenty years. “S” DRAIN IMPROVEMENTS WHALE ROCKS NEW JOHN DEER TRACTOR 8 Page 46 of 103 Management’s Discussion & Analysis Exposed Pipeline Recoating The Whale Rock Pipeline has "crossing" sections that are not buried and need to be recoated to reduce corrosion and provide maximum service life. During 2024, staff recoated many of the above-grade crossing pipe sections. In December, staff completed recoating the crossing at the San Luis Obispo Water Treatment Plant. This pipe section houses the Whale Rock water meter, shown on the left side of the picture, and an interior pipeline access point on the right of the image. The interior pipeline access point was installed to extract pipeline inspection tools during the 2018 Pipeline Condition Analysis. Staff plans to recoat the remaining crossings this spring. Door Maintenance at Pump Stations Whale Rock's two pump stations have multiple steel doors. The doors are used for human access, and one large set of doors is used to remove and replace the 200-horsepower motors that operate the water pumps. Since the pump stations were constructed in 1993, years of use and corrosion have rendered some doors inoperable. In February, Western Prehung worked at both pump stations to make repairs to the doors. The most extensive work effort occurred at Pump Staton A, where the marine environment had caused the double door frame to corrode and fail. Western Prehung staff replaced the steel double-door frame, restoring the door's functionality. RECOATED WHALE ROCK PIPELINE AT THE SLO WATER TREATMENT PLANT WESTERN PREHUNG STAFF REPLACING A DOUBLE DOOR FRAME AT PUMP STATION A 9 Page 47 of 103 Management’s Discussion & Analysis Termite Fumigation The Whale Rock shop and office are wood buildings and can attract termites. The Whale Rock team has noted termite droppings inside the shop. To remedy the termites, Whale Rock staff worked with Terminix to fumigate the facility. Terminix tarped the structure and applied fumigant on a Thursday. The tarps were removed on Saturday, with normal operations resuming on Monday morning. A five-year warranty against termite infestation covers the shop and office. Pressure Relief Valve Maintenance High water pressure in the Whale Rock pipeline contributes to water leaks and reduces the pipeline's lifespan. Whale Rock's five pressure relief valves detect water pressure higher than desired in the pipeline and release water to lower the water pressure. Reducing excess water pressure in the pipeline helps to prevent pipeline failures. Staff rebuilt Whale Rock's five pressure relief valves to ensure proper pressure relief valve operation WHALE ROCK SHOP/OFFICE TENTED FOR FUMIGATION STAFF REBUILDING A PRESSURE RELIEF VALVE 10 Page 48 of 103 Management’s Discussion & Analysis Mowing The Dam's Face The best management practice for earthen dams is to maintain a low vegetation level to allow visual inspection of the Dam's surface. Continuous surveillance of the Dam allows staff to recognize unusual conditions that may indicate a developing problem. Some level of vegetation reduces erosion on the face of the Dam and is desirable. The Whale Rock team mows the Dam annually to keep the vegetation at a low level, allowing observation of the face of the Dam. A tracked mower was used for three days to increase staff safety while mowing the steep area. The rental machine is more stable than our wheeled tractor mower and does a great job, safely reducing the height of the grass on the Dam. Pump Station Maintenance The Whale Rock delivery system uses ten pumps to supply water to Commission members. Earlier this year, one of these pumps started leaking, indicating worn-out ceramic seals. The Whale Rock team installed new ceramic seals and bearings in the pump and put it back into service. In June, the team removed corrosion from the pump and prepared it for recoating. In this picture, the pump has been recoated and is ready to deliver water over the summer months. ANNUAL MOWING OF THE DAM’S FACE REBUILT AND RECOATED DELIVER PUMP 11 Page 49 of 103 Management’s Discussion & Analysis Electric Motor Rebuild In February, pump five at Pump Station A failed to start, activating alarms in our pump control system. Alpha Electric came onsite to diagnose the motor's failure. Alpha Electric's staff determined that the motor had an internal issue, causing the inability to start and subsequent alarms. The Whale Rock team removed the motor and delivered it to Electric Motor Works for servicing. The motor was disassembled, serviced, and reinstalled by Whale Rock staff. In the first week of March, Alpha Electric will come onsite and connect the motor's electrical wiring, putting it back in service. Each pump station has five pumps and motors that provide redundancy and allow us to remove a pump or motor for repairs without impacting water deliveries. The Notes to the Financial Statements provide additional information that is essential to the reader for a full understanding of the data provided in the Commission’s financial statements. PUMP 5 MOTOR INSTALLED AFTER SERVICEING 12 Page 50 of 103 Management’s Discussion & Analysis Financial Analyisis Net position may serve, over time, as an indicator of a government’s financial position. As noted above, assets exceeded liabilities by $7.2 million at June 30, 2025. At the end of the current fiscal year, the Commission continues to report a positive net position. Information about changes in net position resulting from operations is summarized below: STATEMENT OF ACTIVITIES Government Wide Whale Rock FY2024-25 FY2023-24 Revenues: Charges for services 2,813,357$ 2,770,405$ Other revenues 1,872 8,108 Use of money and property 314,857 267,853 Total Revenues 3,130,086 3,046,366 Expenses: Operations 1,695,309 1,771,627 Capital projects 86,748 577,105 General government 252,099 274,372 Depreciation 63,283 63,283 Total expenses 2,097,439 2,686,387 Increase (decrease) in net position 1,032,647 359,979 Net position, beginning 6,215,428 5,855,449 Prior year restatement - - Net position, beginning of year, as restated 6,215,428 5,855,449 Net position, ending 7,248,075$ 6,215,428$ 13 Page 51 of 103 Management’s Discussion & Analysis Commission Contributions Members contribute for both operating and maintenance activities as well as Capital Improvement Plan (CIP) projects which may also include contributions toward the CIP reserve. Total contributions by member are show below. Budgetary Highlights A budgetary comparison schedule for the year ended June 30, 2025 is presented as part of the required supplementary information. The following summarizes the original and final budget compared with actual results for FY 2024-25. The variance column reflects the differences between the actual amounts realized and the final budget amounts. While revenues came in above budget, expenditures came in significantly under due to budgeted project activity that did not happen during the year. Capital Assets Capital assets, including infrastructure, are those assets that are used in the performance of the Commission’s functions and reservoir. As of June 30, 2025, the Commission’s capital assets increased by $24,000 from $663,000 in the prior year to $688,000 (net of accumulated depreciation). More information on the Commission’s capital assets can be found in Note 3 of these financial statements. 14 Page 52 of 103 Management’s Discussion & Analysis Request for Additional Information This finacial report is designed to provide a general overview of the Commision’s finances for all those with an interest in the finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of San Luis Obispo, Department of Finance, 990 Palm Street, San Luis Obispo, California, 93401. 15 Page 53 of 103 This page intentionally left blank. 16 Page 54 of 103 BASIC FINANCIAL STATEMENTS 17 Page 55 of 103 This page intentionally left blank. 18 Page 56 of 103 GOVERNMENT-WIDE FINANCIAL STATEMENTS 19 Page 57 of 103 This page intentionally left blank. 20 Page 58 of 103 2025 2024 ASSETS Cash and investments 6,284,413$ 5,713,938$ Accrued interest receivable 29,615 26,605 Accounts receivables 409,558 17,775 Nondepreciable capital assets 1,381 - Capital assets, net of accummlated depreciation 686,180 663,072 Total assets 7,411,147 6,421,390 LIABILITIES Accounts payable 94,014 135,422 Accrued salaries 18,397 17,087 Other liabilities 50,661 53,453 Total liabilities 163,072 205,962 Net Position Net investment in capital assets 687,561 663,072 Unrestricted 6,560,514 5,552,356 Total Net Position 7,248,075$ 6,215,428$ Whale Rock Commission Statements of Net Position June 30, 2025 and 2024 The accompanying notes are an integral part of these financial statements. 21 Page 59 of 103 2025 2024 Expenses Reservoir operations 1,695,310$ 1,771,627$ General government 252,099 274,372 Capital projects 86,748 577,105 Depreciation 63,282 63,283 Total expenses 2,097,439 2,686,387 Program Revenues Charges for services: Basic operating charges 1,310,027 1,242,781 Water distribution 771,824 834,074 Total program revenues 2,081,851 2,076,855 Net expense and program revenues (15,588) (609,532) General Revenues and Transfers Use of money and property 314,857 267,853 CIP Contributions 731,506 693,550 Other revenues 1,872 8,108 Total general revenues and transfers 1,048,235 969,511 Increase in Net Position 1,032,647 359,979 Net Position - beginning of year 6,215,428 5,855,449 Net Position - end of year 7,248,075$ 6,215,428$ Whale Rock Commission Statements of Activities For the Years Ended June 30, 2025 and 2024 The accompanying notes are an integral part of these financial statements. 22 Page 60 of 103 FUND FINANCIAL STATEMENTS 23 Page 61 of 103 This page intentionally left blank. 24 Page 62 of 103 803--807--809 2025 Assets Cash and investments 6,284,413$ 5,713,938$ Accrued interest receivable 29,615 26,605 Accounts receivables 409,558 17,775 Total assets 6,723,586 5,758,318 Liabilities and Fund Balance Liabilities Accounts payable 94,014 135,422 Accrued salaries 18,397 17,087 Other liabilities 50,661 53,453 Total liabilities 163,072 205,962 Fund Balance Assigned for reservoir operations 389,482 409,199 Assigned for CIP 3,953,849 3,309,091 Unassigned 2,217,183 1,834,066 Total fund balance 6,560,514 5,552,356 Total Liabilities and Fund balance 6,723,586$ 5,758,318$ 2024 Whale Rock Commission Balance Sheets June 30, 2025 and 2024 The accompanying notes are an integral part of these financial statements. 25 Page 63 of 103 2025 Total Fund Balances - governmental funds 6,560,514$ Capital assets at estimated historical cost 1,931,976$ Accumulated depreciation (1,244,415) 687,561 Total net position - governmental activities 7,248,075$ Capital assets used in governmental activities are not financial resources and therefore are not reported in the fund. Whale Rock Commission Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position For the year ended June 30, 2025 The accompanying notes are an integral part of these financial statements. 26 Page 64 of 103 2025 2024 REVENUES: Use of money and property 314,857$ 267,853$ CIP Contributions 731,506 693,550 Other revenue 1,872 8,108 Services: Basic operating charges 1,310,027 1,242,781 Water distribution 771,824 834,074 Total services 2,081,851 2,076,855 Total revenues 3,130,086 3,046,366 EXPENDITURES: Current: Reservoir operations 1,695,310 1,771,627 General government 252,099 274,372 Capital projects 174,519 577,105 Total curent expenditures 2,121,928 2,623,104 Total expenditures 2,121,928 2,623,104 Excess of revenues over expenditures 1,008,158 423,262 FUND BALANCES: Beginning of year 5,552,356 5,129,094 End of year 6,560,514$ 5,552,356$ 803--807--809 Whale Rock Commission Statements of Revenues, Expenditures and Changes in Fund Balances For the years ended June 30, 2025 and 2024 The accompanying notes are an integral part of these financial statements. 27 Page 65 of 103 2025 Total excess of revenues over expenditures - governmental funds 1,008,158$ Expenditure for capital outlay 86,390$ Construction in progress deletion 1,381 Depreciation expense (63,282) 24,489 Total increase in net position - governmental activities 1,032,647$ Capital outlay net of depreciation expenses and disposal Whale Rock Commission Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the year ended June 30, 2025 The accompanying notes are an integral part of these financial statements. 28 Page 66 of 103 Whale Rock Commission Notes to Financial Statements June 30, 2025 Note 1: Summary of Significant Accounting Policies Description of the Reporting Entity The Whale Rock Commission (Commission) was established as a joint venture on December 12, 1960 to oversee, in a fiduciary capacity, the operations and routine maintenance of the Whale Rock Reservoir (Reservoir). The Commission is composed of six voting members and two non-voting members. Three voting members are appointed by the City of San Luis Obispo (City); one by the California Polytechnic State University; one by the California Men's Colony; and one by the Director of Finance, State of California. The two non-voting members are position appointments: the Director of Water Resources, State of California; and the Water Superintendent, City of San Luis Obispo. The Commission is authorized to establish policies for the operation of the Reservoir, to contract for the sale of excess water, and to approve its annual budget. The City, in accordance with established policies of the Commission, operates and maintains the Reservoir; prepares and recommends the annual budget; and maintains the fiscal records and moneys of the Commission. Ownership in the Reservoir is as follows: 55.05%, City of San Luis Obispo; 33.71%, California Polytechnic State University; and 11.24%, California Men's Colony. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the activities of the Commission. The statement of activities demonstrates the degree to which the direct expenses are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Separate fund financial statements are also provided. Measurement Focus, Basis of Accounting and Basis of Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Commission considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. The Commission considers interest earned but not received and billings to participating agencies earned but not received as susceptible to accrual. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. The focus of financial measurement is upon available resources rather than net income determination. 29 Page 67 of 103 Whale Rock Commission Notes to Financial Statements June 30, 2025 Note 1: Summary of Significant Accounting Policies, (Continued) Measurement Focus, Basis of Accounting and Basis of Presentation, (Continued) The accounting policies of the Commission conform to generally accepted accounting principles. The accounts of the Commission are presented in the fund financial statements as a Governmental Fund. As the City maintains the accounting records and moneys of the Commission in a fiduciary capacity, the Commission's operating activities are accounted for in a separate fiduciary fund type (Custodial Fund) in the City's Annual Comprehensive Financial Report (ACFR). The operations of the fund are accounted for with a set of self-balancing accounts that comprise the Commission's assets, liabilities, fund equity, revenues, and expenditures. Commission resources are allocated to, and accounted for, as assets of the fund and equity to the participating agencies. Budgets and Budgetary Accounting As provided under the Whale Rock Agreement, the Commission has the sole responsibility for the adoption of the budget and may amend or supplement the budget at any time after its adoption. The budget is legally adopted prior to the commencement of the fiscal year and is prepared in accordance with generally accepted accounting principles. The Director of Finance of the City has the authority to make or approve administrative adjustments to the budget as long as those changes will not have a significant policy impact nor affect budgeted year- end fund balances. Appropriations lapse at year-end unless such amounts are encumbered and reappropriated in the next fiscal year. Capital Assets Capital assets, which include property, plant, equipment and infrastructure assets are reported as part of the Commission. Capital assets are defined by the Commission as assets with an initial, individual cost of more than $25,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. The costs of normal maintenance and repairs that do not add to the value of assets or materially extend assets’ lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. The Commission does not have any intangible assets. Detailed information on the Commission’s capital assets can be found in Note 3. City of San Luis Obispo Services Because the City accounts for the activities of the Commission, other services such as workforce and risk management are also provided by the City. The City’s ACFR fully discusses pooled and self-insurance and how the City manages the risk of the Commission. New Pronouncements In 2025, the Commission adopted new accounting standards in order to conform to the following Governmental Accounting Standards Board Statements:  GASB Statement No. 102 – Certain Risk Disclosures – The primary objective of this Statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints. 30 Page 68 of 103 Whale Rock Commission Notes to Financial Statements June 30, 2025 Note 1: Summary of Significant Accounting Policies, (Continued) New Pronouncements, (Continued) The Commission is currently analyzing its accounting practices to determine the potential impact on the financial statements for the following GASB Statements:  GASB Statement No. 103 – Financial Reporting Model Improvements - The primary objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. This Statement also addresses certain application issues.  GASB Statement No. 104 – Disclosure of Certain Capital Assets – The primary objective of this Statement is to provide users of governmental financial statements with essential information about certain types of capital assets. Note 2: Cash and Investments The Commission's cash and investments are pooled with those of the City. As provided for by the California Government Code, the cash balances of substantially all funds held by the City are pooled and invested by the City Treasurer for the purpose of increasing interest earnings through investment activities. The Commission's share of the aggregate pooled cash and investments are recorded at fair value and included in the accompanying balance sheet under the financial statement caption cash and investments. Interest earned on pooled investments is allocated quarterly to the Commission based upon the Commission's average cash balance during the allocation period. Refer to Note 2 of the Notes to the Financial Statements of the City of San Luis Obispo as contained in the City's ACFR for further discussion of the nature of the City's pooled cash and investments and all related fair value disclosures. Note 3: Capital Assets Governmental Accounting Standards Board (GASB) standards require that the Commission report in the government- wide statements the value of all capital assets net of accumulated depreciation, including infrastructure assets, in accordance with U.S. Generally Accepted Accounting Principles (GAAP). Infrastructure assets are defined as long- lived capital assets that are stationary in nature and normally can be preserved for a significantly greater number of years than most capital assets. The minimum requirement for compliance with GASB standards is to provide infrastructure valuations for all assets constructed, acquired, or placed into service on or after July 1, 1980. Relevant assets for the Commission were valued at one of two dates: 1) the original date of construction, if available, or 2) the incorporation date of the Commission. Each asset was reviewed to determine the adequacy of the data to value to asset prior to July 1, 1980 using historical cost or estimated historical cost. 31 Page 69 of 103 Whale Rock Commission Notes to Financial Statements June 30, 2025 Note 3: Capital Assets, (Continued) Capital assets activity for the fiscal year ended June 30, 2025 was as follows: Capital assets activity for the fiscal year ended June 30, 2024 was as follows: Balance Decreases/ Balance June 30, 2024 Increases Transfers June 30, 2025 Capital assets not being depreciated: Construction in progress -$ 87,771$ (86,390)$ 1,381$ Total capital assets not being depreciated - 87,771 (86,390) 1,381 Capital assets being depreciated: Infrastructure 588,106 - - 588,106 Buildings and improvements 1,092,285 - 13,068 1,105,353 Equipment 191,830 - 45,006 236,836 Accum. Depreciation (1,209,149) (63,283) 28,316 (1,244,115) Total capital assets being depreciated, net 663,072 (63,283) 86,390 686,180 Capital assets, net 663,072$ 24,488$ -$ 687,561$ Balance Decreases/ Balance June 30, 2023 Increases Transfers June 30, 2024 Capital assets not being depreciated: Construction in progress -$ -$ -$ -$ Total capital assets not being depreciated - - - - Capital assets being depreciated: Infrastructure 588,106 - - 588,106 Buildings and improvements 1,092,285 - - 1,092,285 Equipment 195,456 - (3,626) 191,830 Accum. Depreciation (1,149,492) (63,283) 3,626 (1,209,149) Total capital assets being depreciated, net 726,355 (63,283) - 663,072 Capital assets, net 726,355$ (63,283)$ -$ 663,072$ 32 Page 70 of 103 REQUIRED SUPPLEMENTARY INFORMATION 33 Page 71 of 103 This page intentionally left blank. 34 Page 72 of 103 Variance Positive Original Budget Final Budget Actual (Negative) Revenues Use of money and property 1,000$ 1,000$ 314,857$ 313,857$ CIP Contributions 624,958 624,958 731,506 106,548 Other revenues 6,000 6,000 1,872 (4,128) Services: Basic operating charges 1,297,986 1,297,986 1,310,027 12,041 Water distribution 588,940 888,940 771,824 (117,116) Total services 1,886,926 2,186,926 2,081,851 (105,075) Total Revenues 2,518,884 2,818,884 3,130,086 311,202 Expenditures Current: Reservoir operations 1,624,616 1,951,282 1,695,310 255,972 General government 255,805 255,805 252,099 3,706 Capital projects 2,507,849 2,593,688 174,519 2,419,169 Total Expenditures 4,388,270 4,800,775 2,121,928 2,678,847 Excess (Deficiency) of Revenues and Other Sources Over (Under) Expenditures and Other Uses (1,869,386) (1,981,891) 1,008,158 2,990,049 Commission Equity - beginning of year 5,552,356 5,552,356 5,552,356 - Commission Equity - end of year 3,682,970$ 3,570,465$ 6,560,514$ 2,990,049$ Whale Rock Commission Budgetary Comparison Schedule Fiscal Year Ended June 30, 2025 35 Page 73 of 103 Budgetary Comparison Schedule Whale Rock Commission Notes to Required Supplementary Information June 30, 2025 1. The budget is prepared using the modified accrual basis of accounting consistent with U.S. generally accepted accounting principles. 2. Outstanding encumbrances from the prior fiscal year are not reflected in the original budget column but are included in the final budget amounts. 36 Page 74 of 103 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Independent Auditor’s Report To Members of the Whale Rock Commission San Luis Obispo, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and general fund information of the Whale Rock Commission (Commission), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the Commission’s basic financial statements and have issued our report thereon dated April 6, 2026. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Commission’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Commission’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Commission’s internal control. Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. However, as described in the accompanying schedule of findings and responses, we did identify certain deficiencies in internal control that we consider to be material weaknesses and significant deficiencies. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. We consider the deficiencies described in the accompanying schedule of findings and responses as item 2025-001 to be material weaknesses. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiencies described in the accompanying schedule of findings and responses as item 2025-002 to be significant deficiency. Page 75 of 103 To the Members of the Whale Rock Commission San Luis Obispo, California Page 2 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Commission’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Whale Rock Commission’s Response to Findings The Commission’s response to the findings identified in our audit is described in the accompanying schedule of findings. Commission’s response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Badawi & Associates, CPAs Emeryville, California April 6, 2026 38 Page 76 of 103 Whale Rock Commission Schedule of Findings and Responses For the year ended June 30, 2025 Section I – Current Year Findings A. Financial Statement Audit Finding 2025-001 Journal Entries Posting (Material Weakness) Criteria: The access to post journal entries in the general ledger should be restricted. Journal entries should be independently prepared, reviewed before being posted to the general ledger. Condition: During the review of the City’s journal entry approval matrix and JE testing, we noted the posting from the subledger to GL do not require approvals at the general ledger level nor at the subledger level. Considering the number of employees who can post entries through subledger without review and the fact that corrections to payroll, payable, revenue/receivables, cash management, capital assets all can be posted through subledger and do not require approval, it increased the risk of unauthorized or incorrect journals get posted into general ledger. Cause: The City didn’t have control in place to ensure all journal entries are properly reviewed before posting. Effect: Journal entries recorded in the City’s accounting system may be inaccurate, unapproved, or unsupported. Recommendation: We recommend that the City limit the number of employees who can post journal entries in the subledger and general ledger, and implement system control to ensure all journal entries are reviewed before posting. Management’s response: City management agrees with the recommendation and continues working with the internal IT team and consultants to explore modifications to the Oracle ERP system’s workflow to include approval for system-generated adjusting entries, which are currently posted automatically. Approval for manually generated journal entries was implemented in FY 2021-22 and remains in place. While the City has approval controls for manual entries, a solution for system-generated adjustments is still in progress. In the interim, the City has limited the number of employees that can post journal entries and has developed reports that are generated each week to detect changes or adjustments to payables transactions. These reports, along with procedural changes are intended to mitigate risk of inaccurate, unapproved or unsupported entries posting to the general ledger until a system solution is identified. This goal is considered partially implemented by the City. 39 Page 77 of 103 Whale Rock Commission Schedule of Findings and Responses For the year ended June 30, 2025 Section I – Current Year Findings, continued A. Financial Statement Audit Finding, continued 2025-002 Payroll Module Implementation (Significant Deficiency) Criteria: An effectively implemented payroll system should process the payroll accurately, and an effective internal control system over payroll requires timely and accurate payroll processing. Condition: During the performance of the audit, we noted that –  The Oracle payroll module has overtime configuration implemented incorrectly, and the City has to manually track the payroll in a spreadsheet and correct the error as it occurs since the implementation.  The configuration of payroll journal entries posting was implemented incorrectly which caused the variance between the bank record and the City’s general ledger. Cause: The Oracle payroll module has not been implemented correctly. Effect: Errors and fraud can go undetected in payroll processing with a large volume of manual corrections needed. Recommendation: We recommend the City to work with the third-party vendor to correct the implementation of payroll module. Management’s Response: City Management agrees with the finding and has engaged a consultant to reconfigure the payroll module to correct overtime calculations. Significant progress has been made in identifying and testing solutions as of June 30, 2025, with full implementation occurring in October 2025. Manual intervention in the calculation of overtime is no longer required as of the implementation. In the interim, the City continued to monitor payroll, manually correcting overtime issues each pay period. To enhance accuracy, staff has delivered comprehensive training on timecard entry and created Oracle Guided Learnings (OGLs) for real-time payroll module training. Additionally, the City has implemented the mandatory "Redwood" Oracle user interface upgrade, improving usability and time-tracking accuracy. Configuration of the payroll journal entries was a one-time occurrence that has since been corrected. 40 Page 78 of 103 Whale Rock Commission Schedule of Findings and Responses For the year ended June 30, 2025 Section II – Prior Year Findings A. Financial Statement Audit Finding 2024-001 Journal Entries Posting (Material Weakness) Criteria: The access to post journal entries in the general ledger should be restricted. Journal entries should be independently prepared, reviewed before being posted to the general ledger. Condition: During the review of the City’s journal entry approval matrix and JE testing, we noted the posting from the subledger to GL do not require approvals at the general ledger level nor at the subledger level. Considering the number of employees who can post entries through subledger without review and the fact that corrections to payroll, payable, revenue/receivables, cash management, capital assets all can be posted through subledger and do not require approval, it increased the risk of unauthorized or incorrect journals get posted into general ledger. Cause: The City didn’t have control in place to ensure all journal entries are properly reviewed before posting. Effect: Journal entries recorded in the City’s accounting system may be inaccurate, unapproved, or unsupported. Recommendation: We recommend that the City limit the number of employees who can post journal entries in the subledger and general ledger, and implement system control to ensure all journal entries are reviewed before posting. Status: Partially implemented, see current year finding 2025-001. 41 Page 79 of 103 Whale Rock Commission Schedule of Findings and Responses For the year ended June 30, 2025 Section II – Prior Year Findings, continued A. Financial Statement Audit Finding, continued 2024-002 Payroll Module Implementation (Significant Deficiency) Criteria: An effectively implemented payroll system should process the payroll accurately, and an effective internal control system over payroll requires timely and accurate payroll processing. Condition: During the performance of the audit, we noted that –  The Oracle payroll module has overtime configuration implemented incorrectly, and the City has to manually track the payroll in a spreadsheet and correct the error as it occurs since the implementation.  The configuration of payroll journal entries posting was implemented incorrectly which caused the variance between the bank record and the City’s general ledger. Cause: The Oracle payroll module has not been implemented correctly. Effect: Errors and fraud can go undetected in payroll processing with a large volume of manual corrections needed. Recommendation: We recommend the City to work with the third-party vendor to correct the implementation of payroll module. Status: Partially implemented, see current year finding 2025-002. 42 Page 80 of 103 Whale Rock Commission Report Whale Rock Commission Meeting – May 28, 2026 Agenda Item 6g – 2026-27 Whale Rock Reservoir Budget FROM: Shawna Scott, Assistant Director of Utilities PREPARED BY: Shane Whittington, Utilities Business Manager SUBJECT: 2026-27 W hale Rock Reservoir Budget RECOMMENDATION Adopt the 2026-27 Whale Rock Reservoir Budget. 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 – 2026-27 Agency Contributions City of San Luis Obispo (55.05%) Cal Poly State University (33.71%) California Men’s Colony (11.24%) Total Contribution $2,647,451 $1,621,173 $540,552 O&M Allocation1 $789,599 $483,513 $161,219 CIP Contribution $1,095,495 $670,829 $223,676 CIP Reserve Contribution $762,357 $466,831 $155,657 Table 2 – 2026-27 Forecasted Pumping Charges City of San Luis Obispo Cal Poly State University California Men’s Colony Dairy Creek Forecasted Pumping Charges $250,000 $238,000 $20,000 $25,000 1 O&M Allocation does not include electricity costs associated with pump station operation. Participants should budget for the total of “Total Contribution” (Table 1) plus “Forecasted Pumping Charges” (Table 2). Page 81 of 103 The next sections describe the detailed budgets from which the recommendations above are derived. Additional sections on recommended capital reserve contributions are also included. Detailed Budgets Table 3 contains budget totals organized by cost categories and subcategories. Table 3 – Detailed Budgets 2025-26 Adopted Budget 2026-27 Proposed Budget 2027-28 Forecasted Budget Capital Asset Expenses $4,326,597 $3,374,845 $3,983,284 Capital Expenses $169,859 $1,990,000 $7,983,284 Legacy Projects $2,771,893 Transfers to/from Capital Reserves $1,384,845 $1,384,845 $(4,000,000) Salaries and Benefits $795,293 $816,450 $840,249 Salaries $554,675 $553,108 $569,007 Benefits $240,618 $263,342 $271,242 Operating Budget $1,321,593 $1,156,624 $1,169,007 Office Expenses $8,466 $8,466 $8,466 Operating Materials & Supplies $93,050 $53,250 $53,250 Services and Supplies $167,828 $192,853 $172,853 Travel, Meeting, and Dues $8,200 $8,200 $8,200 Utilities – Electrical Pumping $710,073 $533,000 $548,990 Utilities – Other $32,400 $33,000 $33,000 General Government $301,576 $327,855 $344,248 Revenues $3,671,589 $4,997,919 $6,052,539 Charges for Services $1,399,812 $1,434,331 $1,454,523 Charges for Electricity $710,073 $533,000 $548,990 Charges for CIP Contributions $1,554,704 $3,374,845 $3,983284 Other Revenue $7,000 $5,743 $5,743 Net Revenue (Revenue minus Expenditures) $2,771,893 $0 $0 Ending Year Balance 2025-26 2026-27 2027-28 Capital Reserve Balance $3,402,528 $4,787,373 $787,373 Unreserved Fund Balance $1,770,939 $1,770,939 $1,770,939 Tables including descriptions of the subcategories, more granular budget data, and detailed capital projects forecasts are included as Attachments A, B, and C. A copy of the Whale Rock Fund Analysis is included as Attachment D. Page 82 of 103 Capital Reserve Balances and Recommendations Capital reserve balance and staff recommendations for capital reserves in 2025-26 are outlined in Table 4. These recommendations will be reviewed annually to ensure that reserve balances are sufficient to cover capital needs and to try to reduce the frequency of large year-to-year variations in capital costs. Consistent with Item 7 on May 8, 2025 covering the 2025-26 Whale Rock Reservoir Budget, staff are recommending higher than usual capital reserve contributions in anticipation of 200549-Whale Rock Pump Station Electrical Repairs (A and B), which is scheduled for construction in 2027-28. Staff anticipate recommending a $4,000,000 utilization of capital reserves across all partner agencies for 200549-Whale Rock Pump Station Electrical Repairs (A and B) in 2027-28. 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%) 2025-26 Capital Reserve Balance $1,952,112 $1,051,837 $398,579 2026-27 Capital Reserve Contributions $762,357 $466,831 $155,657 2026-27 Capital Reserve Balance $2,714,469 $1,518,668 $554,235 Staff will evaluate capital reserve levels and contributions on an annual basis to reassess for sufficiency. 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 increased contributions to capital projects including the Spillway Concrete Wall Repairs (Item 4), Seismic Study (Item 5), Hydrologic and Hydraulic PMF Studies (Item 6), and Stilling Basin Maintenance (Item 7). The Seismic Study and Spillway Wall Repair projects are mandated studies and rehabilitation projects resulting from the July 2025 Annual Inspection Report from the division of Safety Dams (DSOD). The requested funding was partially offset by the deferral and altered scope of 2001017-Whale Rock Pipe Assessment and Repairs (91617), commonly referred to as the Dairy Creek Pipeline Repair Project. This project is being deferred as it is a lower priority than the other projects, and not able to be completed until the Nacimiento pipeline project is completed, restoring backup water supplies to the City of San Luis Obispo and Cal Poly. A year-over-year summary of Whale Rock Commission members’ contributions are included in Table 6. Page 83 of 103 Table 6 – Year-Over- Year Agency Contributions 2025-26 Adopted Budget 2026-27 Proposed Budget City of San Luis Obispo (55.05%) $1,932,767 $2,897,451 O&M Allocation $770,597 $789,599 CIP Contribution $855,865 $1,857,852 Pumping Charges $306,306 $250,000 Cal Poly State University (33.71%) $1,302,273 $1,859,173 O&M Allocation $471,877 $483,513 CIP Contribution $524,091 $1,137,660 Pumping Charges $306,306 $238,000 California Men’s Colony (11.24%) $415,626 $585,552 O&M Allocation $157,339 $161,219 CIP Contribution $174,749 $379,333 Pumping Charges $83,538 $45,000 Total Member Contributions $3,650,666 $5,342,176 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. 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. Not approving the budget would adversely affect these essential functions, and would result in the delay of actions required by the Division of Safety of Dams . 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 84 of 103 Item 6g - Attachment A Subcategory Descriptions Capital Expenses This subcategory describes project budgets proposed to be allocated in the corresponding fiscal year. Legacy Projects This subcategory describes project budgets that were approved in a prior fiscal year but are still allocated for the current fiscal year. Expenses for capital projects may be incurred in multiple fiscal years due to the timing of the project. Capital Reserves This subcategory describes agency contributions to a reserve account for future capital projects. These funds are reserved and can only be utilized as authorized by member agencies. Salaries This subcategory describes all direct payment for salaries related to operating the Whale Rock Reservoir. This includes regular salaries, standby, and call back. Benefits This subcategory describes all benefits for staff related to operating the Whale Rock Reservoir. This includes retirement contributions, CalPERS, and insurance. Office Expenses This subcategory describes expenses such as paper, toner, binders, and other miscellaneous office supplies. Operating Materials and Supplies This subcategory describes all materials related to operating the Whale Rock Reservoir. Some of the specific items covered by this cost category include valves, pump repair materials, water meters, fencing materials, etc. Services and Supplies This subcategory describes expenses such as annual dam inspections through the California Department of Water Resources, minor pump and motor rebuilds, and other contract services. Travel, Meeting, and Supplies This subcategory describes expenses related to education and training such as AWWA conferences and other pertinent educations opportunities. Utilities – Electrical Pumping This subcategory describes the expenses related to pumping water from the Whale Rock Reservoir to the Whale Rock Commission members. While staff provided forecasted budget for this expense, pumping charges are not collected through agency contributions, and are billed separately based on proportional share of water delivered. Utilities – Other This subcategory describes utility expenses not related to pumping water. This includes utilities like communications, garbage, and facility and office electricity. General Government This subcategory describes expenses related to internal support services provided by the City, including the Finance, Human Resources, and City Clerk’s Office Departments. Charges for Services This subcategory includes all Whale Rock Commission Member contributions, and any revenues related the fishing program. Other General Government Revenue This subcategory describes all other revenue. It includes any sort of interest on investments, rental revenues, etc. Page 85 of 103 Page 86 of 103 Attachment B - Detailed Budgets (Acccount Level Details) 2025-26 Budget Data by Account Fiscal Year Row Labels 2026 Budgeted 2027 Proposed 2028 Forecasted 31022-Whale Rock CIP Reserve Contribution - City (762,357)$ (762,357)$ 2,202,000$ 31023-Whale Rock CIP Reserve Contribution - Cal Poly (466,831)$ (466,831)$ 1,348,400$ 31024-Whale Rock CIP Reserve Contribution - CA Men's Colony (155,657)$ (155,657)$ 449,600$ 44101-Interest on Investment 1,000$ 5,000$ 5,000$ 44310-Miscellaneous Revenue 6,000$ 743$ 743$ 46706-Whale Rock Operating Charges 1,399,812$ 1,434,331$ 1,454,523$ 46707-Whale Rock CIP Contributions 1,554,704$ 3,374,845$ 3,983,284$ 46711-Water Distribution (Pumping) Charges 710,073$ 533,000$ 548,990$ 51001-Salaries - Regular (471,415)$ (482,568)$ (497,045)$ 51003-Salaries - Contract -$ -$ -$ 51004-Salaries - Temporary -$ -$ -$ 51010-Overtime (3,000)$ (3,000)$ (3,090)$ 51017-Standby (22,245)$ (23,140)$ (23,140)$ 51018-Call Back (4,000)$ (4,000)$ (4,120)$ 52001-Retirement Contributions (38,553)$ (39,594)$ (40,782)$ 52002-Retirement PARS - 401 (222)$ (222)$ (229)$ 52003-PERS Unfunded Liability (131,432)$ (148,752)$ (153,214)$ 53001-Employee Group Insurance (57,449)$ (61,481)$ (63,325)$ 53002-Retiree Healthcare (6,180)$ (6,351)$ (6,541)$ 55001-Medicare (6,781)$ (6,942)$ (7,151)$ 56003-Contingency Expense (54,015)$ (40,400)$ (41,612)$ 61005-Data Processing Services -$ -$ -$ 61007-Legal Services (20,000)$ (20,000)$ (20,000)$ 61011-Maintenance (16,200)$ (16,200)$ (16,200)$ 61013-Other Contract Services (118,650)$ (144,000)$ (124,000)$ 61027-Control Systems (12,978)$ (12,653)$ (12,653)$ 61503-Electric Service (723,373)$ (546,300)$ (562,290)$ 61505-Communication Service (15,500)$ (16,100)$ (16,100)$ 61506-Solid Waste Service (3,600)$ (3,600)$ (3,600)$ 62002-Office Supplies (1,500)$ (1,500)$ (1,500)$ 62007-Employee Recognition (500)$ (500)$ (500)$ 62009-Software Licensing and Maint Agreements (6,466)$ (6,466)$ (6,466)$ 62501-Chemicals (700)$ (700)$ (700)$ 62502-Construction Materials and Supplies (5,900)$ (6,000)$ (6,000)$ 62503-Equipment Maintenance Supplies (5,500)$ (5,500)$ (5,500)$ 62505-Machinery and Equipment (60,000)$ (20,000)$ (20,000)$ 62506-Safety Materials and Supplies (2,150)$ (2,150)$ (2,150)$ 62509-Misc Materials and Supplies (18,800)$ (18,900)$ (18,900)$ 63001-Membership and Certifications (600)$ (600)$ (600)$ 63002-Education and Training (6,100)$ (6,100)$ (6,100)$ 63003-Trips and Meetings (1,500)$ (1,500)$ (1,500)$ 71006-Project Expenditures (169,859)$ (1,990,000)$ (7,983,284)$ 71501-Undesignated Capital (Completed Projects) (17,842)$ 71999-Legacy Project Expenses (2,754,051)$ 75002-Reimbursement Transfers Out (301,576)$ (327,855)$ (344,248)$ Grand Total (2,771,893)$ 0.00$ -$ Page 87 of 103 Page 88 of 103 2025-26 Capital Projects Forecast Fiscal Year Item Description Notes 2026 Budgeted 2027 Proposed 2028 Forecasted 2029 Forecasted 2030 Forecasted 2031 Forecasted 2032 Forecasted 2033 Forecasted 2034 Forecasted 2035 Forecasted 2036 Forecasted 2000075-Major Facilities Maintenance [1000075]09.01-Corp Yard Fuel Island Siding / Recoating of Fuel Island and Dispensers 2,929.38$ 2000176-Whale Rock Intake Valve Replacement [1000176]00-BASE 200,000.00$ 2000181-Fleet Services Vehicle Lift [1000181]02-Whale Rock Fund Vehicle Lift -$ 2000521-Fleet Replacement: Utilities [1000521]01.06-Water Distribution Vactor Truck -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 2000521-Fleet Replacement: Utilities [1000521]03.01-Whale Rock 1/2 Ton Truck (1630) -$ -$ -$ 82,500.00$ -$ -$ -$ -$ -$ -$ 2000521-Fleet Replacement: Utilities [1000521]03.02-Whale Rock Utility Tractor 1,677.65$ 2000521-Fleet Replacement: Utilities [1000521]03.03-Whale Rock Trailer 6,346.00$ 2000521-Fleet Replacement: Utilities [1000521]03.04-Whale Rock Dump Trailer 8,438.75$ 2000521-Fleet Replacement: Utilities [1000521]03.X10-Whale Rock UTV w/Dump Bed -$ 30,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ 2000521-Fleet Replacement: Utilities [1000521]03.X5-Whale Rock Service Body Truck (1637) -$ -$ -$ -$ 100,000.00$ -$ -$ -$ -$ -$ 2000521-Fleet Replacement: Utilities [1000521]03.X6-Whale Rock 4x4 SUV - Jeep (1738) -$ -$ -$ -$ -$ 76,000.00$ -$ -$ -$ -$ 2000521-Fleet Replacement: Utilities [1000521]03.X7-Whale Rock Boston Whaler -$ -$ -$ 40,000.00$ -$ -$ -$ -$ -$ -$ 2000521-Fleet Replacement: Utilities [1000521]03.X8-Whale Rock Boat Trailer -$ -$ -$ 10,000.00$ -$ -$ -$ -$ -$ -$ 2000521-Fleet Replacement: Utilities [1000521]03.X9-Whale Rock Portable Generator (1302) -$ -$ 200,000.00$ -$ -$ -$ -$ -$ -$ -$ 2000549-Whale Rock Pump Station Rehab 00-BASE 500,000.00$ 500,000.00$ 4,539,380.00$ -$ -$ -$ -$ -$ -$ -$ -$ 2000602-Utilities IT Replacements [1000074]01.03-Asset Management Cityworks Integration (Whale Rock Fund) 6,610.00$ 2000603-Enterprise IT Replacements [1000074]06-Radios, Mobiles and stations not replaced - EF & PW Only 9,114.82$ -$ -$ -$ -$ -$ 12,298.74$ -$ -$ -$ -$ 2000603-Enterprise IT Replacements [1000074]08-VoIP Telephone System 1,558.00$ 2000603-Enterprise IT Replacements [1000074]08-VolP Telephone System -$ -$ -$ -$ -$ -$ -$ -$ 2,032.84$ -$ 2000603-Enterprise IT Replacements [1000074]09-Wireless System Citywide -$ -$ 1,299.55$ -$ -$ -$ -$ 1,506.53$ -$ -$ -$ 2000604-Network IT Replacements [1000074]02-Firewall Replacement 841.82$ 2000604-Network IT Replacements [1000074]02-Firewall Replacements -$ -$ -$ 975.90$ -$ -$ -$ -$ 1,131.34$ -$ 2000604-Network IT Replacements [1000074]03-Network Security Upgrade 421.00$ 2000604-Network IT Replacements [1000074]03-Network Security Upgrades -$ 460.04$ -$ -$ 502.70$ -$ -$ 549.31$ -$ -$ 2000604-Network IT Replacements [1000074]04.03-Network Switching Infratstructure Equipment 625.00$ 2000604-Network IT Replacements [1000074]04.03-Networking Switching Infrastructure Equipment -$ -$ 724.55$ -$ -$ -$ -$ 839.95$ -$ -$ 2000604-Network IT Replacements [1000074]05-Uninterruptible Power Supplies (UPS, Servers and Storage) 1,962.00$ -$ 2,143.93$ -$ -$ 2,342.73$ -$ -$ 2,559.96$ -$ -$ 2000604-Network IT Replacements [1000074]06-Virtual Private Network Replace 2,341.00$ -$ -$ -$ 2,713.86$ -$ -$ -$ -$ 3,146.11$ -$ 2000604-Network IT Replacements [1000074]07.03-VMware Infrastructure Upgrade 8,301.00$ -$ -$ 9,070.73$ -$ -$ 9,911.83$ -$ -$ 10,830.92$ -$ 2001009-Whale Rock Major Maintenance [91335]00-BASE 185,799.92$ -$ -$ -$ -$ -$ -$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 2001009-Whale Rock Major Maintenance [91335]01-Spillway Drain Repairs 263,929.90$ 2001009-Whale Rock Major Maintenance [91335]02-Reservoir Fencing 48,030.00$ -$ 20,000.00$ 20,000.00$ 20,000.00$ 20,000.00$ 20,000.00$ 20,000.00$ 20,000.00$ 20,000.00$ 20,000.00$ 2001009-Whale Rock Major Maintenance [91335]03-Replacement of Piezometers 250,000.00$ 2001009-Whale Rock Major Maintenance [91335]04-Stilling Basin 235,836.47$ 2001009-Whale Rock Major Maintenance [91335]06-Whale Rock Reroof of Shop and Residence 7,333.92$ 2001009-Whale Rock Major Maintenance [91335]07-Intake Valve Replacement -$ 200,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ 2001009-Whale Rock Major Maintenance [91335]07-Inventory for Emergency Pipeline Repairs 32,593.50$ 2001009-Whale Rock Major Maintenance [91335]08-Roadway Pavement 515,586.75$ 2001009-Whale Rock Major Maintenance [91335]08-Shop Pavement Replacement -$ -$ -$ 50,000.00$ -$ -$ -$ -$ -$ -$ 2001009-Whale Rock Major Maintenance [91335]10-Spillway Concrete Wall Repair 250,000.00$ 1,200,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ 2001009-Whale Rock Major Maintenance [91335]11-Stilling Basin Maintenance (Rock Slope Protection) 120,000.00$ -$ 1,900,000.00$ -$ -$ -$ -$ -$ -$ -$ 2001009-Whale Rock Major Maintenance [91335]12-Seismic Study 550,000.00$ 550,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ 2001017-Whale Rock Pipe Assessment and Repairs (91617)00-Transmission Pipeline Repairs (Base) -$ -$ -$ 1,800,000.00$ 1,800,000.00$ 1,800,000.00$ -$ -$ -$ -$ 2001017-Whale Rock Pipe Assessment and Repairs (91617)04-Pipeline Replacement Baywood 30,000.00$ 1,200,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ 2001017-Whale Rock Pipe Assessment and Repairs (91617)05-Cathodic Protection Improvements -$ -$ 350,000.00$ -$ -$ -$ -$ -$ -$ -$ 2001017-Whale Rock Pipe Assessment and Repairs (91617)06-Pipeline Inspection -$ 200,000.00$ -$ -$ -$ -$ 1,000,000.00$ -$ -$ -$ 2001017-Whale Rock Pipe Assessment and Repairs [91617]00-Transmission Pipeline Repairs (Base) 588,497.26$ 2001017-Whale Rock Pipe Assessment and Repairs [91617]01-Pipeline Replacement Alternatives Study 346.03$ 2001017-Whale Rock Pipe Assessment and Repairs [91617]02-Pipeline Creek Crossing Repairs 30,000.00$ 2001019-Whale Rock Auto Control Valves [91718]00-BASE 14,789.86$ 2027X01-Transmission Pipeline Point Repairs 00-BASE 40,000.00$ 40,000.00$ 40,000.00$ 40,000.00$ 40,000.00$ 40,000.00$ 40,000.00$ 40,000.00$ -$ -$ 2027X02-Whale Rock Hydrologic and Hydraulic Update 00-BASE 500,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Page 89 of 103 Page 90 of 103 Net Revenue Account Category 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-3 Capital Asset Expense($84,591)($168,494)($76,025)($176,959)($577,105)($174,520)($2,941,752)($1,990,000)($7,983,284)($2,519,795)($2,046,190)($1,962,845)($1,958,211)($1,161 Capital Reserves ($2,017,683)($1,384,845)($1,384,845)$4,000,000 ($345,000)($345,000)($345,000)($345,000)($345 General Government($160,203)($183,978)($186,211)($190,488)($274,372)($252,099)($301,576)($327,855)($344,248)($361,460)($379,533)($398,510)($418,435)($439 Operations($337,039)($414,989)($309,075)($568,828)($1,094,505)($1,006,018)($1,020,017)($828,769)($824,759)($870,873)($876,587)($925,580)($931,715)($983 Revenue$1,868,814 $2,161,494 $2,394,658 $2,376,183 $3,046,366 $3,130,086 $3,671,589 $5,347,919 $5,992,539 $4,962,585 $4,538,730 $4,550,098 $4,599,068 $3,903 Salaries and Benefits($550,117)($545,122)($695,766)($664,555)($677,123)($689,291)($795,292)($816,450)($840,249)($865,457)($891,420)($918,163)($945,708)($974 Total $736,864 $848,912 $1,127,581 $775,353 $423,261 ($1,009,525)($2,771,893)$0 $0 $0 $0 $0 $0 Unreserved Fund Balance $0M $5M 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035-36 $2.4M $3.2M $4.4M $5.1M $5.6M $4.5M $1.8M $1.8M $1.8M $1.8M $1.8M $1.8M $1.8M $1.8M $1.8M $1.8M $1.8M Whale Rock Fund Financial Position Days of Cash on Hand 0K 1K 2K 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035-36 976 1,226 1,581 1,518 1,144 978 356 393 388 372 366 351 344 330 324 311 305 Capital Reserve Contributions by Agency Member ($4M) ($3M) ($2M) ($1M) $0M $1M $2M 2024 - 2 5 2025 - 2 6 2026 - 2 7 2027 - 2 8 2028 - 2 9 2029 - 3 0 2030 - 3 1 2031 - 3 2 2032 - 3 3 2033 - 3 4 2034 - 3 5 2035 - 3 6 $2,017,683 $1,384,845 ($4,000,000) $345,000 $345,000 $345,000 $345,000 31022-Whale Rock CIP Reserve Contri…31023-Whale Rock CIP Res…31024-Whale Rock CI… 2026-27 Ending CIP Reserves Balance - City of San Luis Obispo $2,714,469 2026-27 Ending CIP Reserves Balance - Cal Poly $1,518,668 2026-27 Ending CIP Reserves Balance - California Men's Colony $554,235 CIP Reserve Balance Forecasted CIP Contributions Forecasted OpEx Contributions Forecasted Pumping Charges Page 91 of 103 Concat Account 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 203 44002-Rental Fees $5,049 $1,122 44101-Interest on Investment $71,545 $818 $39,588 $78,159 $183,176 $192,771 $1,000 $5,000 $5,000 $5,000 $5,000 $5,000 44107-Investment FMV Adjustment ($146,953)($17,408)$84,677 $118,836 44201-Other Rent & Leasse Revenue $4,862 $3,366 $4,488 $5,895 ($999) 44301-Sale of Surplus Property $3,250 44305-Damage to City Property $7,613 44310-Miscellaneous Revenue $743 $743 $1,091 $743 $742 $743 $6,000 $743 $743 $743 $743 $743 45307-Federal Stimulus Grant $260 46703-Utilities Base Charges ($3,034) 46706-Whale Rock Operating Charges $979,351 $1,015,607 $949,126 $1,126,924 $1,242,781 $1,310,027 $1,399,812 $1,434,331 $1,454,523 $1,526,588 $1,580,592 $1,636,614 $1 46707-Whale Rock CIP Contributions $576,621 $887,938 $1,401,424 $810,312 $693,550 $731,506 $1,554,704 $3,374,845 $3,983,284 $2,864,795 $2,369,972 $2,307,845 $2Total$1,868,814 $2,161,494 $2,394,658 $2,376,183 $3,046,366 $3,130,086 $3,671,589 $5,347,919 $5,992,539 $4,962,585 $4,538,730 $4,550,098 $4, Account Category All  Whale Rock Fund Revenue Details Account Subcategory All  Concat Account All  Item Description All  Assigned Member Agency All  Revenue Actuals & Forecast $0M $2M $4M $6M 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035-36 $1.87M $2.16M $2.39M $2.38M $3.05M $3.13M $3.67M $5.35M $5.99M $4.96M $4.54M $4.55M $4.60M $3.90M $2.96M $3.05M $3.09M Actual Budgeted Forecasted Page 92 of 103 Concat Account 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 31022-Whale Rock CIP Reserve Contribution - City $1,189,755 $762,357 $762,357 ($2,202,000)$189,923 $189,923 31023-Whale Rock CIP Reserve Contribution - Cal Poly $585,006 $466,831 $466,831 ($1,348,400)$116,300 $116,300 31024-Whale Rock CIP Reserve Contribution - CA Men's Colony $242,922 $155,657 $155,657 ($449,600)$38,778 $38,778 51001-Salaries - Regular $343,044 $346,208 $370,480 $430,867 $434,659 $442,268 $471,415 $482,568 $497,045 $511,956 $527,315 51003-Salaries - Contract $6,310 $3,109 $4,363 $0 $0 $0 $0 $0 51004-Salaries - Temporary $157 $0 $0 $0 $0 $0 51010-Overtime $7,734 $1,342 $1,661 $1,044 $791 $246 $3,000 $3,000 $3,090 $3,183 $3,278 51017-Standby $19,663 $19,167 $18,972 $18,539 $16,152 $11,787 $22,245 $23,140 $23,140 $23,834 $24,549 51018-Call Back $687 $871 $2,709 $5,037 $699 $4,000 $4,000 $4,120 $4,244 $4,371 52001-Retirement Contributions $33,020 $31,035 $31,662 $33,752 $40,619 $39,390 $38,553 $39,594 $40,782 $42,006 $43,266 52002-Retirement PARS -401 $143 $159 $173 $200 $220 $234 $222 $222 $229 $236 $243Total$1,131,950 $1,312,583 $1,267,077 $1,600,830 $2,623,105 $4,139,610 $6,443,483 $5,347,919 $5,992,539 $4,962,585 $4,538,730 Account Category All  Whale Rock Fund Expenditure Details Account Subcategory All  Concat Account All  Item Description All  Assigned Member Agency All  Expenditure Actuals & Forecast $0M $2M $4M $6M 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035-36 $1.13M $1.31M $1.27M $1.60M $2.62M $4.14M $6.44M $5.35M $5.99M $4.96M $4.54M $4.55M $4.60M $3.90M $2.96M $3.05M $3.09M Actual Budgeted Forecasted Page 93 of 103 Charge Account 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 705.0000.44002 ($561) 705.1101.51001$9 $41 $81 705.1101.51017$490 $434 $370 705.1101.52001$39 $34 $31 $11 705.1101.53002 $1 705.1101.55001$6 $6 $5 $2 705.2001.75002$160,203 $183,978 $186,211 705.2003.44301 ($3,250) 705.2007.44002 ($4,488)($1,122) 705.2007.44101($71,545)($818)($4,603)($75,127)($183,176)($192,771) 705.2007.44107 $39,198 $17,408 ($84,677)($118,836) 705.2007.44204($4,862) ($3,366)($4,488)($5,895)$999 705.6003.51001 $54 705.6003.52001 $4 $3 705.6003.55001 $1 $0 705.6005.52001($0) 705.6201.31022 $1,189,755 $762,357 $762,357 ($2,202,000)$189,923 $189,923 $189,923 $189,923 $189,92 705.6201.31023 $585,006 $466,831 $466,831 ($1,348,400)$116,300 $116,300 $116,300 $116,300 $116,30 705.6201.31024 $242,922 $155,657 $155,657 ($449,600)$38,778 $38,778 $38,778 $38,778 $38,77 705.6201.44101 ($34,985)($3,032) ($1,000)($5,000)($5,000)($5,000)($5,000)($5,000)($5,000)($5,000 705.6201.44107 $107,755 705.6201.44305($7,613) 705.6201.44310($743)($743)($1,091)($743)($742)($743)($6,000)($743)($743)($743)($743)($743)($743)($743 705.6201.45307 ($260) 705.6201.46703$3,034 Total ($736,864)($848,912)($1,127,581)($775,353)($423,261)$1,009,525 $2,771,893 ($0)($0)$0 $0 ($0)($0)($0 General Ledger & Forecast Detail Concat Account All  Item Description All  Fiscal Year All  Account Category All  Account Subcategory All  Page 94 of 103 Item Description 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1000047-Fleet Replacements - Annual Asset Maintenance$0 $0 $0 $0 1000074-IT Replacements - Annual Asset Maintenance Account$2,624 $1,637 $3,035 $243 1000075-Major Facilities Maintenance - Annual Asset Maintenance Account$0 $0 $0 $0 1000176-Whale Rock Intake Valve Replacement$0 $0 $0 $0 1000181-Fleet Services Vehicle Lift$0 $0 $0 $0 1000521-Fleet Replacement: Utilities$0 $0 $0 $0 1000542-Water Treatment Plant Major Facility Maintenance$0 $0 $0 $0 2000075-Major Facilities Maintenance [1000075] $13,068 $2,929 2000176-Whale Rock Intake Valve Replacement [1000176] $200,000 2000181-Fleet Services Vehicle Lift [1000181] $2,000 $0 2000521-Fleet Replacement: Utilities [1000521] $20,215 $73,322 $16,462 $0 $30,000 $200,000 $132,500 2000549-Whale Rock Pump Station Rehab $500,000 $500,000 $4,539,380 $0 $0 2000602-Utilities IT Replacements [1000074] $6,610 2000603-Enterprise IT Replacements [1000074] $0 $885 $10,673 $0 $1,300 $0 $0 2000604-Network IT Replacements [1000074] $14,492 $0 $2,604 $9,795 $3,690 2001009-Whale Rock Major Maintenance [91335]$19,210 $125,511 $72,990 $89,897 $544,663 $31,839 $1,539,110 $920,000 $1,970,000 $1,920,000 $70,000 2001017-Whale Rock Pipe Assessment and Repairs (91617) $30,000 $1,400,000 $350,000 $1,800,000 2001017-Whale Rock Pipe Assessment and Repairs [91617] $3,000 $50,654 $618,843 2001019-Whale Rock Auto Control Valves [91718] $7,227 $4,751 $14,790 2027X01-Transmission Pipeline Point Repairs $40,000 $40,000 $40,000 $40,000 2027X02-Whale Rock Hydrologic and Hydraulic Update $500,000 $0 $0 $0 90069-Whale Rock Old Creek Habitat Plan (90069)$0 $0 $0 $0 90490-Water Distribution Telemetry System Upgrade (90490)$8,432 $0 $0 $0 91617-Whale Rock Pipe Assessment and Repairs (91617)$30,000 $0 $289 $83,753 91675-Whale Rock Boathouse Replacement (91675)$2,928 $7,575 $0 $0 Total $84,591 $168,494 $76,025 $176,959 $577,105 $174,520 $2,941,752 $1,990,000 $7,983,284 $2,519,795 $2,046,190 Capital Projects Details Item Description All  Notes All  Fiscal Year All  Page 95 of 103 Page 96 of 103 Page 97 of 103 Page 98 of 103 Page 99 of 103 Page 100 of 103 Page 101 of 103 Page 102 of 103 Page 103 of 103