HomeMy WebLinkAbout04/04/2006, C3 - AMENDMENT NO. 8 TO U.S. ARMY CORPS OF ENGINEERS LICENSE FOR SALINAS RESERVOIR council 4-0G
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C I T Y OF SAN LUI S O B I S P 0
FROM: John Moss,Utilities Director
Prepared By: Gary Henderson, Water Division Manager ��
SUBJECT: AMENDMENT NO. 8 TO U.S. ARMY CORPS OF ENGINEERS
LICENSE FOR SALINAS RESERVOIR
CAO RECOMMENDATION
Approve Amendment No. 8 to the Salinas Dam License Agreement to extend the permit date to
June 30, 2011, and authorize the Mayor to sign the amendment between the City of San Luis
Obispo and the Secretary of the Army(U.S. Army Corps of Engineers).
DISCUSSION
The Salinas Dam was built in 1941 by the War Department (now the U.S. Army Corps of
Engineers) to supply water for Camp San Luis Obispo. The available water supply was never fully
utilized by the U.S. Government and therefore the City of San Luis Obispo was granted a license
from the Corps of Engineers in 1944 to connect to the Army pipeline to utilize excess available
water from the Salinas Reservoir.
The conditions and terms of the license.have been amended seven times since the original license
was issued. Amendment No. 8 extends the termination date an additional five years to June 30,
2011, all other terms of the license remain unchanged. The Corps of Engineers is interested in
transferring the ownership of the dam and property to a local agency. Once the dam transfers to a
local agency it will fall under the jurisdiction of the State Division of Safety of Dams (DSOD).
The City Council recently approved a contract for a detailed seismic analysis of the dam to insure
that the facility meets the DSOD criteria prior to the transfer. The goal over the next several years
will be to complete the seismic analysis and to develop the strategy needed to move forward with
the property transfer.
CONCURRENCES
The City Attorney has reviewed the amendment and concurs with the recommendation.
FISCAL IMPACT
There is no additional fiscal impact. The City pays for all the operation and maintenance costs
associated with raw water supplied to the City of San Luis Obispo's Water Treatment Plant from
Salinas Reservoir. These costs are included in the existing budget and no additional funding is
anticipated.
ATTACHMENTS
1. Amendment No. 8 C,�—�
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Secretary of the Army
License No. DA-04-353-ENG-1943
Salinas Dam and Reservoir Area
San Luis Obispo County, California
AMENDMENT NO. 8
THIS AMENDMENT NO. 8, entered into by and between the SECRETARY OF THE
ARMY,hereinafter referred to as the Government, and the CITY OF SAN LUIS
OBISPO,hereinafter referred to as the Licensee, WITNESSETH:
WHEREAS,on 17 December 1943,the then Secretary of War granted a license to the
Licensee, to operate and maintain a connection to a pipeline,which pipeline is hereafter
called the Connecting Pipeline, connecting the Army Pipe Line with the City's Water
Distribution System on the Salinas River, San Luis Obispo County, California; and
WHEREAS,on 29 July 1952 by Amendment No. 1,the license was amended to
provide,among other things, for the delivery of up to 3,000 acre feet of water to the
Licensee, diverted from the Army Pipeline leading from Salinas Reservoir and to provide
for payment by Licensee for up to 3,000 acre feet of water in any one calendar year; and
WHEREAS,on 6 July 1962 by Amendment No. 2,the license was revised to provide
that the Licensee shall furnish and install, at its own expense, a meter between the Army
Pipeline and the Connecting pipeline, for the purpose of measuring water diverted to the .
Licensee's distribution system,the amount of water to be controlled and measured solely
by a representative of the Government. The amount of water to be diverted by the
Licensee in any calendar year shall be subject to Condition No. 2 of the license,the State
Water Rights permits granted to the licensee, and the safe annual yield of Salinas
Reservoir; and
WHEREAS,by Amendment No. 3,the license was amended as follows:
That Conditions No. 2, 3, 4, and 4a be deleted in their entirety and the following was
inserted thereto and made a part thereof
Condition No. 2. "Determination of Excess Water The United States does not undertake
to furnish nor assume any obligation whatsoever to make available any water for the use
by the Licensee and the Licensee hereby expressly denies any obligation on the part of
the Government do to do: and that the Licensee may request the San Luis Obispo Flood
Control and Water Conservation.District, and subject to provisions of the agreement with
the Government, the District shall deliver the full safe annual yield or more than the full
save annual yield in any one year, consistent with the Project's capabilities."
Condition No. 3. "Measurement of Water Diverted The City shall furnish and install at
its own expense and at no cost to the United States, a meter at the point of connection
between the Army Pipe Line and the Connecting Pipe Line suitable for the purpose of
C3 - 2-
measuring the amount of water diverted to the City Distribution System, the amount of
water diverted to be controlled and measured solely by a representative of the United
States. The amount of water to be diverted by the City in any calendar year shall be
subject to Condition No. 2 hereinabove,the requirements of the United States for water
from Salinas Reservoir and the State Water Rights permits granted to the City of San
Luis Obispo."
Condition No 4. "Payment Beginning 1 July 1976, the Licensee shall pay each fiscal year
to San Luis Obispo County Flood Control and Water Conservation District, twelve(12)
equal installments which would total each fiscal year's total approved budget for the
operation and maintenance expense, other operating expense,non-operating expense,
capital outlay and committed or uncommitted reserves,relating to delivery of Project
water."
In addition the license was extended for a period of five (5) years, ending 16 December
1988; and
WfIREAS,by Amendment No. 4,the license was amended to extend the term for an
additional five (5) years, ending December 15, 1993; and
WHEREAS,by Amendment No 5,the license was amended to extend the term for an
additional five(5) years, ending 16 December 1998..
WHEREAS,by Amendment No 6,the license was amended to extend the term for an
additional five(5) years, ending 16 December 2003.
WHEREAS,by Amendment No 7, the license was amended to extend the term for an
additional two (2) years and six(6) months, ending 30 June 2006.
NOW,THEREFORE,in consideration of the premises, the parties hereto do
mutually agree that said License is amended in the following particulars.
1. That the termination date be extended for an additional period of five years,
beginning 1 July 2006 and ending 30 June 2011.
2. That in all other respects, the terms and conditions of said License as amended
remain unchanged.
This transaction is not subject to Title 10,United States Code, Section 2662.
IN WITNESS WHEREOF, I have hereunto set my hand by authority of the
Secretary of the Army this day of , 2006.
THERESA M. KAPLAN
Chief, Real Estate Division
THIS AMENDMENT No. 7,together with the provisions and conditions thereof, is
hereby accepted this day of 2006.
CITY OF SAN LUIS OBISPO
BY:
TITLE:
APPROVED AS TO FORM:
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