HomeMy WebLinkAbout09/20/1994, C-4 - NACIMIENTO WATER SUPPLY PROJECT - PRELIMINARY ENGINEERING AND ENVIRONMENTAL IMPACT REPORT RESERVATION AND PARTICIPATION AGREEMENT MEETING DATE:
City Of SM IUIS OBISp0 Sept. 20, 1994
COUNCIL AGENDA REPORT STB"NUMBER:
FROM: John '
Moss / PREPARED BY: Dan Gilmore
Utilities Dir or Utilities Enginee;,/ J
SUBJECT: Nacimiento Water Supply Project - Preliminary Engineering and Environmental
Impact Report Reservation and Participation Agreement
CAO RECOMMENDATION:
By motion, approve the revised Nacimiento Water Supply Project allocation request of 3380
acre-feet per year(afy),approve Nacimiento Project Preliminary Engineering and Environmental
Impact Report Reservation and Participation Agreement, and authorize mayor to execute the
agreement to continue participation in the project.
BACKGROUND:
The San Luis Obispo County Flood Control and Water Conservation District ("District") has an
entitlement of 17,500 acre-feet per year (afy) of water from Nacimiento Lake through a contract
with Monterey County. Approximately 1,300 afy have been contracted for use around the lake,
leaving 16,200 afy for allocation to other areas within the County of San Luis Obispo.
The Nacimiento Project has been evaluated a number of times in the past and has recently been
studied at length for feasibility, reliability, and environmental considerations. The first phase
of the study involved an evaluation of the reliability of the Nacimiento Project to deliver water
at a maximum amount of 17,500 afy. Phase I was completed and presented to the Board of
Supervisors in December of 1992. The results of the reliability assessment concluded that the
Nacimiento Project can deliver 17,500 afy based on historic hydrologic data. The analysis did
indicate a number of months during the most recent drought where deliveries would have had
to be reduced. But, subsequent months could have sustained increased deliveries to make up for
the reductions and therefore deliver the full 17,500 acre-feet for the year.
Phase II of the Nacimiento Project involved the Preliminary Engineering Evaluation and
Environmental Assessment for the Nacimiento Water Supply Project. The results of study by
Boyle Engineering showed a viable project. No "fatal flaws" were found that would hinder the
project from proceeding to completion. The Phase II report was accepted and approved by the
Board of Supervisors on June 7, 1994. The Board directed County staff to proceed with the
project and develop the Nacimiento Project Preliminary Engineering and Environmental Impact
Report Reservation and Participation Agreement.
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city of San LUIS OBISPO
Em COUNCIL AGENDA REPORT
DISCUSSION:
The next phase of the Nacimiento Water Supply Project will be the Preliminary Engineering and
Environmental Impact Report. Participation in this phase of work is subject to the execution of
the Nacimiento Project Preliminary Engineering and Environmental Impact Report Reservation
and Participation Agreement ("Agreement"). The Agreement is similar to the previous
agreements executed by all 28 participants in the "Preliminary Evaluation". One major
difference is the exclusion of language relating to any refund if a participating agency chooses
to drop out of this phase. Additional language is included in this agreement inviting agencies
to participate in a Nacimiento Participant's Advisory Committee (NPAC). The proposed
agreement is attached for review.
City staff has revised the allocation request to reflect recent policy changes, as described in the
Draft Urban Water Management Plan (UWMP). Water use figures have been adjusted to reflect
a planning figure of 145 gallons per capita per day (g/c/d). Also, staff has removed the amount
of allocation requested to serve the airport area, as CSA-22 has requested an entitlement
separately to serve the Airport Area. City staff has estimated water use for the Airport Area
to be 481 afy. CSA-22 has requested an entitlement of 890 afy. The difference in the amounts
requested for this area is explained by the following:
0 Differences in assumptions regarding future land use. The City's estimate is
consistent with current City land use plans.
• CSA-22 used different per capita water use factors.
0 The Airport Area, if developed outside of the City, would have to use Nacimiento
water for irrigating recreational facilities. The City estimate assumes recreational
facilities would be irrigated with reclaimed water.
• Larger water systems require smaller margins of safety for delivering water at
peak demands. Smaller water systems are less flexible.
In consideration of these factors, the City's revised allocation request is 3380 afy. Inclusion of
the Airport Area would result in an allocation request of 3861 afy. These estimates assume that
the Salinas Reservoir Expansion Project does not proceed to completion, and no existing potable
uses would be offset by the use of reclaimed water. Cost estimates from the County for this
next phase of work on the Nacimiento Project are rough, at best. The costs are estimated to be
on the order of$75.00 per acre-foot of water requested. Therefore, the City's cost to continue
to participate in the Nacimiento Project would be around $253,500, for the allocation request
of 3380 afy.
The Preliminary Engineering and Environmental Impact Report are expected to be completed
by the end of 1996. At that point, the final project will be scoped and final participation
agreements will be executed. These agreements will be binding. As scheduled, Nacimiento
deliveries would begin in the year 2000.
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Nii% COUNCIL AGENDA REPORT
FISCAL IMPACT:
A total of $384,000 was approved as a part of the 1993-94 Budget to support the City's
participation in the Nacimiento Reservoir Water Project (1993-95 Financial Plan Supplement,
Approved 1994-95 Budget, page E-4). No expenditures have been made to date, so the full
amount is available to support the recommended action.
Attachments: Nacimiento Project Preliminary Engineering and Environmental Impact Report
Reservation and Participation Agreement
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NACIMIENTO PROJECT
PRELIMINARY ENGINEERING AND
ENVIRONMENTAL IMPACT REPORT
RESERVATION AND PARTICIPATION AGREEMENT
This Agreement between the San Luis Obispo County Flood Control and Water
Conservation District ("District"), and City of San Luis Obispo ("Agency").
WITNESSETH:
WHEREAS, the District, and the Monterey County Flood Control and Water
Conservation District(now the Monterey County Water Resources Agency)on October 19,
1959, made and entered into an agreement which agreement assures the District a
perpetual supply of 17,500 acre-feet per year of water from the Nacimiento Reservoir; and
WHEREAS, of the said 17,500 acre-feet per year of District's water supply from the
Nacimiento Reservoir,the District's present policy is to use, in the vicinity of the Nacimiento
Reservoir, 1300 acre-feet per year; and
WHEREAS, of the said 17,500 acre-feet per year of District's water supply from the
Nacimiento Reservoir, the District has studied the reliability and the feasibility of a project
to deliver up to 16,200 acre-feet per year to communities and other users within the County
of San Luis Obispo in the form of a Feasibility Study and Preliminary Evaluation
("Preliminary Evaluation') as approved by the San Luis Obispo County Flood Control and
Water Conservation District Board on June 7, 1994; and
WHEREAS, the District completed and considered the results of the Preliminary
Evaluation, and the District has determined to proceed with additional, necessary
feasibility, environmental, and engineering reviews and studies to define and undertake a
Preliminary Engineering and an.Environmental Impact Report; and
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WHEREAS, the District now intends to complete and consider the conclusions and
recommendations of a Preliminary Engineering and Environmental Impact Report, which
Reports will also address possible methods of financing a project or projects to deliver
water to participating communities; and
WHEREAS, after completion of the Preliminary Engineering and Environmental
Impact Report, the District, in the District's sole discretion, may determine to proceed with
any and/or all other necessary studies to define, finance and do the final design for
construction and operation of the District's Nacimiento Project ("District's Nacimiento
Project"); and
WHEREAS, if the District does determine to define and implement a Nacimiento
Project, as described above, said determination will not preclude evaluation and analysis
by the District of altemative lead agency considerations, such as, but not limited to, a Joint
Power Authority (JPA); and
WHEREAS, the Agency desires to have the right to elect to participate in the
District's Nacimiento Project if the District, in the District's sole discretion, determines to
define, design, finance, construct and operate the District's Nacimiento Project or, in the
altemative, decides that a Joint Powers Authority is the appropriate agency for financing
and implementing a project(s), and if the District, in the District's sole discretion, determines
that the participation of the Agency is consistent with the economic, environmental,
operational, legal and other goals and standards of the District's Nacimiento Project as it
is ultimately defined in the Preliminary Engineering and Environmental Impact Report and
other necessary studies and approved by the District; and
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WHEREAS, the Agency will be requested to advise to the District in the District's
selection and overview of a responsible and qualified professional consultant(s) to
undertake and complete the Preliminary Engineering and the Environmental Impact
Report.
NOW, THEREFORE, IT IS MUTUALLY AGREED by and between District and
Agency as follows:
1. The Agency and District agree that the District intends, and shall have the
right, to enter into agreements, substantially similar to this Agreement, with other parties
and agencies who desire to participate in the study of District's Nacimiento Project.
2. The Agency hereby requests that the District, in preparing the Preliminary
Engineering and Environmental Impact Report, describe the Agency's participation in the
District's Nacimiento Project to be in the amount of acre-feet per year of water from
the District's Nacimiento Project ("Agency Amount"), subject to the following:
a. In making this request, the Agency acknowledges that the District is not
bound by this request or by this Agreement to deliver or reserve for the Agency any
particular amount of water or, any water whatsoever, from District's rights to water from the
Nacimiento Reservoir in the event that the District, in the District's sole discretion: (1)
determines to not proceed with the District's Nacimiento Project; or, (2) determines to
proceed with the District's Nacimiento Project but in an amount less than the full amount
of 16,200 acre-feet per year.
b. In making this request, the Agency acknowledges that the District has
the complete right to define the District's Nacimiento Project such that the Project is
constituted in a manner that the District determines to be the optimum project when the
environmental, economic, engineering, operating, legal and other significant factors of the
Project are considered. In this context, the Agency acknowledges that it is possible that
the District will define the District's Nacimiento Project such that the Agency will not be
allowed by the District to participate in the Agency Amount or, at all.
C. The Agency also acknowledges and agrees that in the event that the
District, in the District's sole discretion, determines not to proceed with the District's
Nacimiento Project that the Agency will not be entitled to any reimbursement of any
moneys paid by the Agency to the District under this Agreement, to the extent that the
District has expended or committed to spend those moneys under the terms of this
Agreement, it being further understood that if there are any said moneys paid by the
Agency to the District under this Agreement which are unexpended and which are not
committed to be spent at the time the District determines not to proceed with the District's
Nacimiento Project, then said unexpended and uncommitted moneys shall be returned to
the Agency by the District.
3. The District and the Agency acknowledge that the District, on June 7, 19941
completed the Preliminary Evaluation for the District's Nacimiento Project in accordance
with that certain "Agreement for Professional Engineering Services for Preliminary
Evaluation for a Water Distribution System for the San Luis Obispo County Flood Control
and Water Conservation District', dated June 9, 1992, by and between District and Boyle
Engineering Corporation.
4. The District and the Agency acknowledge that the District, in considering the
results, conclusions, and recommendations of the Preliminary Evaluation has determined
that the continuing participation of the Agency in the Preliminary Engineering and
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Environmental Impact Report is consistent with the economic, environmental, legal,
operational and other goals and standards of the District with respect to a future District
Nacimiento Project. If and when the District's Nacimiento Project is ultimately defined by
the District as including participation by the Agency, the Agency shall have the right to elect
to participate in the District's Nacimiento Project subject to all of the following terms and
conditions:
a. That the Agency shall participate in the District's Nacimiento Project
in an amount defined by the District and requested by the Agency, but not more than the
Agency Amount, and subject to the approval and final determination by the District.
b. That the Agency is not in default as to any term or condition of this
Agreement.
5. The District shall establish a Nacimiento Participants Advisory Committee
(NPAC) which the Agency shall have the right to participate in and which shall be
established to:
a. Advise the District on the selection of a responsible and qualified
professional consultant(s) to undertake and complete the Preliminary Engineering and the
Environmental Impact Report;
b. Assist, review, and advise on the work being completed with the
District's consultant(s); and
C. Report to the District, in a separate report, the NPAC's findings
conclusions and recommendations resulting from the completion of the Preliminary
Engineering and Environmental Impact Report.
6. The Agency agrees to pay to District the Agency's share of all reasonable
costs and expenses incurred by the District under this Agreement, including District staff
time and overhead, for the District's Preliminary Engineering and Environmental Impact
Report. The amount that the Agency shall pay to District (the Agency's share) shall be the
sum of:
a. The Agency's proportional share of the actual costs of the Preliminary
Engineering and Environmental Impact Report (estimated at $1,050,000) divided by the
sum of all Agency Amounts ( AF), multiplied by the Agency Amount, as
shown in Exhibit A attached hereto.
b. The Agency's proportional share of the District's actual Overhead and
Contingency Costs, (estimated to not exceed 20% of the Preliminary Engineering and
Environmental Impact Report cost); (estimated at $210,000) divided by the sum of all
Agency Amounts ( AF), mulfiplied by the Agency Amount, as shown in Exhibit
A attached hereto.
7. The District shall establish a reserve account from which the District shall
make payments for the District's Preliminary Engineering Evaluation and Environmental
Impact Report for the District's future Nacimiento Project. The Agency shall, within 30 days
of the execution of this Agreement by District, pay to District an initial sum representing
20% of the Agency's total share of the costs as provided for under 6a and 6b, which District
shall place into the said reserve account.
The District shall notify the Agency in accordance with Billing and Payment
schedules as to be defined in certain Preliminary Engineering and Environmental Impact
Report contracts for such services. The District shall so notify the Agency and Agency
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shall within 30 days of receipt of said notice pay to District said amounts required by
District. The District shall, on a quarterly basis, provide to Agency an accounting of the
transactions and status of the reserve account.
8. The term of this Agreement shall be five years from the date of execution
hereof, except that:
a. In the event that the District determines that the District will not
proceed with the Nacimiento Project, the District may terminate this Agreement by giving
ninety days advance written notice to Agency.
b. In the event of early termination by the District of this agreement any
unexpended funds provided by Agency shall be refunded to Agency.
9. Any notice or other communication required by or convenient to this
Agreement may be made by first class mail addressed as follows:
To DISTRICT:
Attn County Engineer
San Luis Obispo County Flood Control
and Water Conservation District
Engineering Department, Room 207
San Luis Obispo, CA 93408
Phone (805) 781-5252, Fax (805) 781-1229
To AGENCY:
John Moss, Utilities Director
City of San Luis Obispo
PO Box 8100
San Luis Obispo CA 93403
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Executed this_day of 1994, at San Luis Obispo, California.
AGENCY:
ATTEST: City of San Luis Obispo
SAN LUIS OBISPO COUNTY FLOOD CONTROL
AND WATER CONSERVATION DISTRICT
COUNTY OF SAN LUIS OBISPO
By:
Chairperson of the Board of Supervisors
ATTEST:
Clerk of the Board of Supervisors
APPROVED AS TO FORM AND LEGAL EFFECT:
JAMES B. LINDHOLM, JR.
County Counsel
By:
Deputy County Counsel
Dated:
mAcatrinaVgglnac8-2.agr
EXHIBIT A
NACIMIENTO RESERVATION AGREEMENT
ESTIMATE OF COSTS TO PARTICIPATE IN
PRELIMINARY ENGINEERING AND ENVIRONMENTAL IMPACT REPORT
„_.,..:
Agency Agency F;;(Agency $ggency43hare Agency
k.t-. ..f....
Amount in Share of�„ of 0rerfiead/. Total'.Cost
AFY ' Prelimin ^5,
a Contin ences
,,..wry' 9-
. cEngineenngzig.
Afuera de Chorro Mutual Water Co 32
Atascadero Mutual Water Company 3000 .1°"
Cal Cities/Los Osos
Cambria Community Services District
City of EI Paso de Robles /, 24000':
City Of Morro Bay ' 1895
City of Pismo Beach , `,• 1000.
k ! _ .`
City of San Luis Obispo a, .L ,w +.::. 51.15•
County°Service Area NW 9Alos Osos '`�" :'li,,-.-300
CSA'No:`i22.:,,Property Owners ?n Vs, 890
�G�iKJ•�•.e ;,
East AirpocUaFwater Comp*a: c
a ria, 80
Edna Valley:Mutui l Water,.Company4,� 955
Fierol6n"e Water Co_inpan 100
Morro Rock Mutual VNater Company 44
'Oak Shores Commun Association 390
Y` TOak Shores Development Company 300
}� r='yev t rT
• ^P.asRo;.Robles�Beach Water Association 30
' .SanSimeon Comm. Serv. Dist 200
Santa Margarita Ranch Mutual Water Co. 600
Templeton Community Services District 1620
Waterworks Dist No.6/Santa Margarita 100
Waterworks Dist No. 8/Cayucos 80
Total 23,031.00
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