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HomeMy WebLinkAbout01/03/1995, C-3 - NACIMIENTO WATER SUPPLY PROJECT - ENGINEERING FEASIBILITY AND ENVIRONMENTAL IMPACT REPORT RESERVATION AND PARTICIPATION AGREEMENT�QVuIINIWIIIII�IIII =III ` r MEETING DATE: _ I city or San rJIS OBISPO January ER 1995 _ COUNCIL AGENDA REPORT ITEM NUMBER: n 3 FROM: John Moss PREPARED BY: Dan Gilmore Utilities ton Utilities Engineer SUBJECT: Nacimiento Water Supply Project - Engineering Feasibility and Environmental Impact Report Reservation and Participation Agreement CAO RECOMMENDATION: By motion, 1. approve the revised Nacimiento Project Engineering Feasibility and Environmental Impact Report Reservation and Participation Agreement, 2. appoint Dan Gilmore, Utilities Engineer, as the City's representative to the Nacimiento Participants Advisory Committee, and John Moss, Utilities Director, as alternate, and, 3. authorize Mayor to execute the revised agreement for participation in the next phase of the project. DISCUSSION: On September 20, 1994, Council approved the revised Nacimiento water allocation request of 3,380 acre -feet per year (afy). The language of Nacimiento Project Engineering Feasibility and Environmental Impact Report Reservation and Participation Agreement was also approved. In October, the County Board of Supervisors directed County staff to make some minor language modifications in response to comments from one of the purveyors. The modifications do not substantially alter the original agreement approved by Council. Primarily, the change allows the Nacimiento Participants Advisory Committee to participate in the preparation of the Request for Proposals for this next phase of consultant work. The agreement provides for the formation of the Nacimiento Participants Advisory Committee (NPAC), which will assist the County in completing the Environmental Impact Report and Engineering Feasibility Study. The committee will primarily provide technical assistance and recommendations to the Board. Each participating agency will be represented on the NPAC. Dan Gilmore, the City Utilities Engineer, has been involved in the Nacimiento Project since January of 1992. His experience in engineering, EIR's, and contract administration make him the logical choice to represent the City's interests in the Nacimiento Project. ��� ►M�►��I�Illll���li ►��U�N city of San L ,s OBISpo _ COUNCIL AGENDA REPORT The Engineering Feasibility 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. As currently scheduled, Nacimiento deliveries may begin by the year 2000. FlSCAL IMPACT: Budgeting for the next phase of work on the Nacimiento Project was approved by Council on September 20, 1994. The approvals in the CAO Recommendation result in no change to the fiscal impact for this project, as previously identified and approved. Attachments: Nacimiento Project Engineering Feasibility and Environmental Impact Report Reservation and Participation Agreement C -3- NACIMIENTO PROJECT ENGINEERING FEASIBILITY REPORT AND ENVIRONMENTAL IMPACT REPORT 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 Districts 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 Engineering Feasibility Report and an Environmental Impact Report; and WHEREAS, the District now intends to complete and consider the conclusions and recommendations of a Engineering Feasibility Report and Environmental Impact Report, C-3-3 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 Engineering Feasibility Report and Environmental Impact Report, the District, in the District's sole discretion, may determine to proceed with any and/or all other studies necessary to define, finance and accomplish the final design for construction and operation of a project to deliver District's Nacimiento Reservoir water to participating communities; and WHEREAS, if the District does determine to define and implement such a Nacimiento Reservoir water delivery project, 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 such a Nacimiento Reservoir water delivery project if the District, in the District's sole discretion, determines to define, design, finance, construct and operate such a project or, in the alternative, decides that a Joint Powers Authority is the appropriate agency for financing and implementing such a project, and if the District, in the Districts sole discretion, determines that the participation of the Agency is consistent with the economic, environmental, operational, legal and other goals and standards of the water delivery projectas it is ultimately defined in the Engineering Feasibility Report and Environmental Impact Report and other necessary studies and approved by the District; and WHEREAS, the Agency will be requested to advise to the District in the Districts solicitation, selection, and overview of a responsible and qualified professional consultants) to undertake and complete the Engineering Feasibility Report and the Environmental. Impact Report. -2- C-34 NOW, THEREFORE, IT IS MUTUALLY AGREED by and between District and Agency as follows: 1. District shall prepare an Engineering Feasibility Report and an Environmental Impact Report (Feasibiliity /EIR Reports) for a project to deliver the District's Nacimiento Reservoirwater to participating communities base on that certain "Preliminary Evaluation for the Nacimiento Water Supply Project - Phase II - Preliminary Engineering Evaluation and Environmental Assessment' ("Preliminary Evaluation ") provided that the Feasibility /EIR Reports shall be based on a delivery system utilizing the Salinas Valley Route as generally set forth in Alternatives 1 through 4 of the Preliminary Evaluation. 2. 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 a project to deliver the District's Nacimiento Reservoir water to participating communities. 3. The Agency hereby requests that the District, in preparing the Feasibility /EIR Reports, describe the Agencys participation to be in the amount of acre -feet per year of water from the Districts Nacimiento Reservoir water ("Agency Amount'), subject to the following: a. In making this request, the Agency acknowledges that the District is not bound by the Agency's 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, finds that (1) the District will not proceed with a Nacimiento Reservoir water delivery project; or, (2) the District will proceed with a Nacimiento Reservoir water delivery projectbut in an amount less than 16,200 acre -feet per year. b. In making this request, the Agency acknowledges that the District has the sole and complete right to define a Nacimiento Reservoir water delivery project in a manner which the District considers to be the optimum project when the environmental, economic, engineering, operating, legal and other significant factors of such a project are considered by the District In this context, the Agency acknowledges that the District shall have the sole right to determine the extent of the Agency's participation in such a project and that the District may define such project so that the Agency's participation in the project is less than the Agency Amount set forth in Paragraph 3 above or such that the Agency will not be permitted to participate in such a project. 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 a project to deliver the Districts Nacimiento Reservoir water to participating communities, 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 such a project, then said unexpended and uncommitted moneys shall be returned to the Agency by the District. 4. The District and the Agency acknowledge that the District, on June 7, 19941 completed the Preliminary Evaluation for a project to deliver the Districts Nacimiento Reservoir water to participating communities in accordance pursuant to that certain "Agreement for Professional. Engineering Services for Preliminary. Evaluation for a Water C -3 -( -4- 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. 5. 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 Feasibility /EIR Reports is consistent with the economic, environmental, legal, operational and other goals and standards of the District with respect to a future project. If and when the District defines a project to deliver the District's Nacimiento Reservoir water to participating communities as including participation by the Agency, the Agency shall have the right to elect to participate in such a projectsubject to all of the following terms and conditions: a. That the Agency shall participate in the such a 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. 6. The District shall establish a Nacimiento Participants Advisory Committee (NPAC) in which the Agency shall have the right to participate and which shall be established to: a. Advise the District on the solicitation and selection of a responsible and qualified professional consultant(s) to undertake and complete the Feasibility/EIR Reports; b. Assist, review, and advise on the work being completed with the District's consultant(s); and -5- x-3-7 C. Report to the District, in a separate report, the NPAC's findings conclusions and recommendations resulting from the completion of the Feasibility /EIR Reports. 7. 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 Feasibility /EIR Reports. 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 Feasibility /EIR Reports (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, not to exceed $64.82 per acre -foot per year of request. b. The Agency's proportional share of the District's actual Overhead and Contingency Costs (estimated at 10 %), (not exceed a combined total of 20% of the Feasibility /EIR Reports cost); estimated at $210,000 divided by the sum of all Agency Amounts ( AF), multiplied by the Agency Amount, as shown in Exhibit A attached hereto, not to exceed $12.96 per acre -foot per year of request. 8. The District shall establish a reserve account from which the District shall make payments for the District's FeasibTty/EIR Reports. The Agency shall, within 30 days of the execution of this Agreement by District, pay to District an initial sum representing 10% of the Agency's total share of the costs as provided for under 7a and 7b, 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 Feasibility/EIR Reports contracts for such services. The District shall so notify the Agency and Agency shall within 30 days of receipt of said -6- C-3-2 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. 9. 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 a project to deliver its Nacimiento Reservoir water to participating communities, 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. 10. 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: Dan Gilmore, Utilities Director City of San Luis Obispo PO Box 8100 San Luis Obispo CA 93403 C-43_ 1 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 m ATTEST: Chairperson of the Board of Supervisors Clerk of the Board of Supervisors APPROVED AS TO FORM AND LEGAL EFFECT: JAMES B. LINDHOLM, JR. County Counsel By: Deputy County Counsel Dated: m:lcatrinaVgglnac12 -9.agr -8- EXHIBIT A NACIMIENTO PARTICIPATION AGREEMENT ESTIMATE OF COSTS TO PARTICIPATE IN ENGINEERING FEASIBILITY REPORT AND ENVIRONMENTAL IMPACT REPORT (FEASIBILITYIEIR REPORTS) Agency Agency Amount AFY Agency Share of Feasibility/ EIR Reports Agency Share of Overhead/ Contingencies at 20% max. Agency' Total Cost $ 1. Afuera de Chorro Mutual Water Co 22 2. Atascadero Mutual Water Company 3000 3. Cal Cites/Los Osos 300 4. Cal Cites/Edna Valley 500 5. City of El Paso de Robles 4000 6. City of San Luis.Obispo 3380 7. County Service Area No. 9A Los Osos 300 8. County Service Area No. 10A Ca ucos 80 9. CSA No. 22 Property Owners 890 Exhibit A to be completed once all Agency Agreements are submitted. Agency amounts shown here are current as of December 9, 1994. 10. East Airport Mutual Water Company 80 11. Edna Valley Mutual Water Companv 955 12. Fiero lane Water Company 100 13. Morro Rock Mutual Water Company 44 14. Paso Robles Beach Water Association 30 15. Santa Margarita Ranch Mutual Water Co. 600 16. Templeton Community Services District 1620 17. Waterworks Dist No. 6/Santa Margarita 100 Total 16001 $1,050,000 $210,000 $1260,000 AGENCY TOTAL COST The Agency's proportional share of the Feasibil'Ity/EIR Report costs which equal the quotient of $1,260,000 divided by the sum of all Agency amounts multiplied by the Agency amount not to exceed $77.78 per acre -foot per year of requested amount C -3 -1 1 -9-