HomeMy WebLinkAbout07/21/1998, 9 - NACIMIENTO WATER SUPPLY PROJECT AMENDMENT TO AGREEMENT council M° Date
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C I TY OF SAN LU IS O B I S P O
FROM: John Moss,Utilities Directo /1
Prepared by: Dan Gilmore,Utilities Engler
SUBJECT: NACIMIENTO WATER SUPPLY PROJECT AMENDMENT TO AGREEMENT
CAO RECOMMENDATION:
By motion; conceptually approve Amendment No. 1 to Agreement A-15-94-CC,reaffirming the
City's commitment to completion of the EIR Phase of the Nacimiento Water Supply Project
DISCUSSION:
In June of 1992, the County hired a consultant to perform preliminary assessments of various
aspects of the Nacimiento Water Supply Project. This work included a reliability assessment and
preliminary engineering, geotechnical, and environmental assessments. Initially, 28 entities,
including the City of San Luis Obispo, entered into reservation agreements with the County to
participate in the subsequent project study phases. Other work completed to date includes the
preparation of the Preliminary Engineering Evaluation and Environmental Assessment,which was
subsequently approved by the County Board of Supervisors. The current phase of the project
involves the preparation of the Environmental Impact Report(EIR). The efforts of three consulting
firms culminated into the release of the draft EIR (DEIR) in September of 1997. The DEIR
underwent an extensive public review period,which resulted in some significant comments.
In responding to public comments on the Draft Environmental Impact Report (DEIR) for the
Nacimiento Water Pipeline Project,it was determined that certain changes to the project description
and supplemental analyses were necessary to produce a legally defensible EIR. Under CEQA,
these changes to the project description and supplemental analyses warrant the preparation and
recirculation of a revised DEIR. Amendment No. 1 to Agreement A-15-94-CC represents the
City's commitment to reimburse the County for the City's proportional share of the costs to
complete these additional studies,circulate a revised DEIR,and prepare the Final EIR(FEIR)
To date,the City has contributed$318,758 as the City's proportionate share of the cost to prepare
the preliminary studies and the DEIR. San Luis Obispo County has estimated the City's share of
the cost for the additional work to be between$87,374.58 and $112,978.90. The range of costs is
dependent on the number of project participants that agree to execute the amendment to the
agreement and continue their participation in the project. The low value assumes that participation
by all current participants will remain unchanged. The high figure would be the City's share of the
costs if only the four largest participants remain. The four largest participants are Paso Robles
(4000 afy), San Luis Obispo (3380 afy), Atascadero Mutual Water Company (3000 afy), and
Templeton Community Services District(1475 afy).
Council Agenda Report-Nacimiento Project Phase II Amendment to Agreement
Page 2
Since the actual cost distribution for this amendment will not be certain until the agreement is
approved by the agencies continuing their participation through EIR certification, staff is
recommending conceptual approval of the amendment. Once the amendment is approved by the
agencies wishing to continue their participation in the project and then approved by the County
Board of Supervisors, the actual cost distribution will be tabulated and included in the final
Amendment No. 1 to the original agreement, which will be brought back to Council for
consideration at that time.
As Council is aware,the City of Paso Robles took action on July 7, 1998,on a 3-2 vote,to not fund
their share of the cost to complete the EIR as described in this amendment. The primary concerns
or issues being cited by Paso Robles City Council were frustration with the project management to
date and a desire for additional justificationby the County and Boyle Engineering for the increased
costs to complete the EIR. While this action by Paso Robles may appear immediately unfortunate,
it is premature to speculate on the continued development of the proj ect and EIR at this time. Paso
Robles City Council may be reconsidering their action on July 21, 1998,and additional information
provided by the County and Boyle Engineering may satisfy their concerns. Additionally, the
continued participation by the remaining NPAC agencies is still uncertain and the project may be
feasibly completed without the participation of Paso Robles. In any case, at this time, Council is
being asked to consider the position of San Luis Obispo relative to the completion of the EIR for
the Nacimiento pipeline project and to reiterate Council's commitment to completing this EIR
phase of the project
The Nacimiento Water Supply Project represents a new source of water supply to the City of San
Luis Obispo. As such, it is consistent with the City's multi-source policy for water resources and
the Council's#1 Major City Goal. As a new source of water,the Nacimiento Water Supply Project
will serve to enhance the reliability of the City's overall water supply picture. Nacimiento
represents one of the few remaining and most important water supply opportunity for the City and
other communities in San Luis Obispo County.
Staff feels that the commitment by the City to the completion of the EIR is extremely important.
The City of San Luis Obispo has served, and will continue to serve, a leadership role in the
development of the Nacimiento Pipeline Project. As other agencies consider their continued
participation in the project,the commitment of San Luis Obispo will undoubtedly be a significant
consideration for those agencies. The Nacimiento project represents the best, if not only,
opportunity for the City to work with the North County cities and water utilities on a truly regional
water supply project. A substantial amount of effort has gone into the development of
relationships, common goals, and ideas through functional working groups like the Nacimiento
Participants Advisory Committee (NPAC) and the Nacimiento Cooperative Use Committee
(NCUC). If the project fails to achieve EIR certification,these efforts,the City's contribution to-
date of $318,758, and the moneys contributed by all other participants will truly be wasted.
Completion of the EIR is critical to the future of the project as development, analysis and
completion of a "project description" through the EIR process will lay to rest many of the key
project issues to date such as; lake level impacts, pipeline routing, recreation plan, water quality,
traffic impacts,intake location etc..
Based on the EIR work completed to date, staff still considers the Nacimiento project to be a very
feasible project in that the major impacts identified thus far have been largely short term,
construction related impacts which can generally be mitigated without significant expense. The
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Council Agenda Report-Nacimiento Project Phase II Amendment to Agreement
Page 3
proposed amendment #1 being considered will actually look at alternatives which may further
alleviate even some of the these construction related impacts.
FISCAL IMPACT:
The approved 1998-99 Budget allocates an additional$100,000 to support the proposed agreement
amendment and completion of the EIR. In addition, approximately $9,950 remains from the
original project budget as contingency funding for this phase,bringing the total funding available to
$109,950. The County's worst-case estimate of the City's share of cost for the additional word is
$112,979. Once the final participation commitments are received by the County and the
proportional shares of cost are determined,staff will return to Council for consideration of the final
agreement amendment and will ask for additional funding at that time, if needed. The following
table illustrates the funding and cost breakdown for the EIR phase:
Available Funding: Project Costs:
Original Project Budget $274,723 Original Phase II Costs $264,773
Approved 1998-99 Budget $100,000 Additional Studies(worst case) $112,979
Total $3749723 Total $3779752
ALTERNATIVES:
Decline participation in the completion of the EIR phase. The City could choose to refrain from
participating in the additional work required to complete the EIR phase. This would likely result in
the failure of the project to move forward through EIR certification. This alternative is not
recommended for the reasons stated above. Certification of the Nacimiento project EIR is a
significant step in achieving the City's#1 Major City Goal. Continued participation on the part of
the City is critical to the progress of the project.
ATTACENIENTS:
Amendment to Agreement
Agreement A-1 5-94-CC
1998-99 CIP Request
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AMENDMENT No. 1
TO THE
NACIMIENTO PROJECT
ENGINEERING FEASIBILITY REPORT AND
ENVIRONMENTAL IMPACT REPORT
PARTICIPATION AGREEMENT
This AMENDMENT No. 1 executed this day of , 1998, to the
AGREEMENT made by and between the San Luis Obispo County Flood Control and Water
Conservation District ("District") and
("Agency") at San Luis Obispo, California on February 28,
1995.
WITNESSETH:
WHEREAS, District has had prepared and circulated a Draft Environmental Impact
Report("DEIR")for the Nacimiento Water Supply Project ("PROJECT") in accordance with
the AGREEMENT and has received comments thereto; and
WHEREAS, District and Agency desire to revise and recirculate said DEIR based
upon those comments received; and
WHEREAS, doing so, causes expenditures to exceed the maximum amounts both
stated and tabulated within the AGREEMENT;
NOW, THEREFORE, in consideration of the mutual promises contained herein,
District and Agency agree to amend the AGREEMENT as follows:
Article 7 is hereby amended by adding the following:
C. The Agency agrees to pay to District, the Agency's proportional
share of all reasonable costs and expenses associated with the revised and
recirculated DEIR incurred by the District under this Agreement, including District
staff time and overhead, and charges billed by the District's consultants (Boyle
Engineering Corporation, John Carollo Engineers and Ogden Environmental and
Energy Services)for the District's Revised Feasibility/EIR Reports (estimated at
an additional $360,238.00 plus a 10% contingency of $36,023.80 for a total of
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$396,261.80). Agency's proportional share is: Agency's requested annual
allocation of PROJECT water divided by the total requested annual allocation of
PROJECT water by all participating Agencies, as listed in Exhibit B attached
hereto, multiplied by the estimated additional cost as shown in said Exhibit B, not
to exceed $33.43 per acre-foot per year of request.
IN WITNESSED WHEREOF,this AGREEMENT is hereby amended by the parties hereto,
upon the date written above.
SAN LUIS OBISPO COUNTY FLOOD CONTROL
AND WATER CONSERVATION DISTRICT:
Chairman of the Board of Supervisors
of the County of San Luis Obispo
ATTEST:
County Clerk and Ex-officio Clerk
of the Board of Supervisors of
the County of San Luis Obispo
By: -
Deputy Clerk
(Agency):
By:
Date
By:
Date
APPROVED AS TO FORM AND LEGAL EFFECT:
9s
JAMES B. LINDHOLM, JR.
County Counsel
By:
Deputy County Counsel
Dated:
Draft Document for NPAC Consideration
and Approval
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A-15-94—CC
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 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, theDistrict 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
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WHEREAS, the District now intends to complete and consider the conclusions and
recommendations of a Engineering Feasibility Report 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 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 alternative 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 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 water delivery
project as it is ultimately defined in the Engineering Feasibility Report 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 the District in the District's
solicitation, selection, and- overview of a responsible and qualified professional
consultant(s) to undertake and complete the Engineering Feasibility Report and the
Environmental Impact Report.
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
Reservoir water to participating communities based on that certain "Preliminary Evaluation
for the Nacimiento Water Supply Project- Phase II - Preliminary Engineering Evaluation
and Environmental Assessment"("Preliminary Evaluation')provided that the Feasibiliity/EIR
Reports shall be based on a delivery system utilizing the Salinas Valley Route as generally
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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 Agency's participation to be in the amount of 3380 acre-feet per year
of water from the District's 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
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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 project but 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 participationin 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 District's 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
inexpended and which are not committed to be spent at the time the District determines
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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, 1994,
completed the Preliminary Evaluation for a project to deliver the District's Nacimiento
Reservoir water to participating communities 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.
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
f
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 project subject to all of the following terms and conditions:
a. That the Agency shall participate in 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
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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
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 (15,471 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 (15,471 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 Feasibility/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 of the remaining balance and any
payments due 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 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.
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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
1
Executed this 27 day of February , 199 50 at San Luis Obispo, California.
AGENCY:
ATTEST: City ofan Lu 'Obispo
Allen K. Settle, Mayor
c
Di Gladw 11, Ci Clerk
SAN LUIS OBISPO COUNTY FLOOD CONTROL
AND WATER CONSERVATION DISTRICT
COUNTY OF SAN LUIS OBISPO
By:
Chairperson of the Board of Supervisors
ATTEST:
JULIE L. RODE VALD
Clerk of the Board of Supervisors
ByVa.
APPROVED AS TO FORM AND LEGAL I perk
JAMES B. LINDHOLM, JR.
County Counsel
By: I
APPROVED AS TO FORM,
D p. C unty Counsel
Da /jJ
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EXHIBIT A
NACIMIENTO PARTICIPATION AGREEMENT
ESTIMATE OF COSTS TO PARTICIPATE IN
ENGINEERING FEASIBILITY REPORT AND ENVIRONMENTAL IMPACT REPORT
(FEASIBILITY/EIR REPORTS)
Agency Agency Agency Agency Share Agency'
Amount Share of of Overhead/ Total Cost
AFY Feasibility/ Contingencies $
EIR Reports at 20% max.
1. Afuera de Chorro Mutual Water Co 32 2,074.24 414.72 2,488.96
2. Atascadero Mutual Water Company 3000 194,460.00 38,880.00 233.340.00
3. Cal Cities/Los Osos 300 19,446.00 3,888.00 23,334.00
4. Cat Cities/Edna Valley 50 3,241.00 648.00 3,889.00
5. City of EI Paso de Robles 4000 259,280.00 51,840.00 311,120.00
6. City of San Luis Obispo 3380 219,091.60 43,804.80 262,896.40
7. County Service Area No. 9A Los Osos 300 19,446.00 31888.00 23,334.00
8. County Service Area No. 10A Cayucos 80 5,185.60 1,036.80 6,222.40
9. CSA No.22 Property Owners 890 57,689.80 11,534.40 69,224.20
10. East Airport Mutual Water Company 80 5,185.60 1,036.80 6,222.40
11. Edna Valley Mutual Water Company 955 61,903.10 12,376.80 74,279.90
12. Fiero Lane Water Company 100 6,482.00 1,29.6.00 7,778.00
13. Morro Rock Mutual Water Company 44 2,852.08 570.24 3,422.32
14. Paso Robles Beach Water Association 30 1,944.60 388.80 2,333.40
16. San Luis Coastal Unified School District 55 3,565.10 712.80 4,277.90
16. Santa MargaritaRanch Mutual Water Co. 600 38,892.00 7,776.00 46,668.00
17. Templeton Community Services District 1475 95,609.50 19,116.00 114,725.50
18. Waterworks Dist No. 6/Santa Margarita 100 6,482.00 1,296.00 7,778.00
19. San Luis Obispo County Flood Control 47,169.78 9,495.84 56,665.62
and Water Conservation District
Total 1 15471 1,050,000.00 210,000.00 1,260,000.00
' AGENCY TOTAL COST The Agency's proportional share of the Feasibility/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.
9- 10
1997-99 Financial . an Supplement: 1998-99 Bu%.jet
CAPITAL IMPROVEMENT PLAN
PROGRAM: Water Source of Supply
REQUEST TITLE: Nacimiento Water Supply Project- EIR Phase Additional Studies
Project Summary
The Nacimiento Water Supply Project is a County project with the purpose of designing and constructing
conveyance facilities to bring water from Lake Nacimiento to several project participants from Paso Robles to
south of the City of San Luis Obispo. Public comments to the Draft Environmental Impact Report (DEIR) will
require certain changes to be made to the project and a revised DEIR will need to be prepared. The City's share
of the costs to complete the EIR are estimated to be$83,325. This request is to add an additional$100,000 to the
project budget to complete the EIR phase and to cover any additional unforeseen costs.
Project Objectives
■ Manage the efforts of project consultants
■ Perform engineering support for development of certifiable EIR
■ Perform additional environmental studies in response to public comments
■ Prepare final EIR for certification by the Board of Supervisors
Existing Situation
The original funding amount identified in the 199495 Budget (page 23 of the Capital Improvement Plan) was
$439,862. That amount was based on an allocation request of 5,115 acre-feet per year(afy). Since that time,the
City has reduced its allocation request to 3,380 afy. Since the City's share of the project costs is proportional to
our requested allocation,the actual cost to the City for the EIR phase was less, and a portion of the project budget
was returned to Fund Balance. To date,the City has actually contributed a total of$318,758 towards the project's
preliminary studies, preliminary engineering, and preparation of the EIR. All of the project participants are
being asked to provide their share of the additional costs to perform the supplemental studies and to complete the
EIR.
Goal and Policy Links
■ The acquisition of a long term supplemental water supply is the primary Major City Goal
■ This project is necessary to meet the water supply needs identified in the General Plan for build-out
■ Several previous Council actions approving participation in the project
■ San Luis Obispo County Master Water Plan Update,March 1986
■ Urban Water Management Plan
Project Work Completed
The project consultant team has performed numerous studies and prepared several reports, including; the initial
Feasibility Study, the Reliability Assessment, the Preliminary Engineering Evaluation and Environmental
Assessment, the EIR Phase Engineering Report, a financial alternatives study, and the Draft Environmental
Impact Report. There has also been a debt capacity review performed for the County, and a revision to State law
was passed in the State Legislature (AB1460) which allows for the simultaneous use of the reservoir for bod
recreational and domestic purposes.
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Nacimiento Water Supply Project-EIR Phase Additional Studies
Environmental Review
This request is to fund completion of the environmental review process for this project.
Other Special Review Considerations
The impacts and benefits of this project are extremely far reaching. The City of San Luis Obispo is one of three
major participants. All participants are dependent on each other for continued participation in the project if
successful completion is to be achieved.
Project Phasing and Funding Sources
The project is proceeding in three major phases. Phase I was completed in February of 1994, and included
various preliminary analyses and assessments. Phase II,the current phase associated with this request, includes
the preparation of the EIR. A substantial amount of engineering is included in Phase II in order to define the
project with sufficient detail to yield an adequate and legally defensible EIR. The last phase will include final
engineering design and construction. Ongoing operations and maintenance of the project, along with the costs
for final design and construction,will all be combined into the unit cost for the water. The expected cost for raw
Nacimiento water delivered to the City is approximately$800 per acre-foot. The costs shown below reflect only
the City's proportionate share of the total project cost in each category:
Project Costs by Type
Project Costs
To-Date 1998-99 1999-00 2000-01 2001-02 Total
Preliminary Studies(Phase I) $55,900 $55,900
EIR Preparation(Phase II) $262,900 $100,000 $362,900
Final Design/Construction(Phase III) '
Total $318,800 $100,000 $418,800
* Phase 111 costs for final design, construction, and other associated costs will be combined into the per acre-foot cost for
Nacimiento water. The annual cost for Nacimiento water will be the City's proportionate share of the debt service required
to fund the actual costs for Phase 111. At present, staffs best guess at these annual costs would be 58001af multiplied by our
current allocation request of 3380af, or S2,704,000..
The funding for Phases I and II of the Nacimiento Water Supply Project has come entirely from the Water Fund.
Phase III is likely to be entirely debt financed, with the debt service being a component of the unit cost for
Nacimiento water. As most of this cost is fixed (each agency must pay whether they take the water or not), the
City staff intends to use all of our entitlement to Nacimiento water first, leaving as much water as possible in
Salinas and Whale Rock Reservoirs to maximize reliability. Current estimates indicate the annual cost for
Nacimiento water to be around $2,704,000. This cost for Nacimiento water will be paid for out of the Water
Fund, and has been`included in the Utilities Department water rate analysis and projections.
49 ���a