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HomeMy WebLinkAbout07/19/2011, C 12 - AMENDMENT NO. 9 TO U.S. ARMY CORPS OF ENGINEERS LICENSE FOR SALINAS RESERVOIR 0 council 7-19-2011 j acjEnba REpoRt 1�rm la CITY OF SAN LUIS OBISPO FROM: Carie Mattingly, Utilities Director Prepared By: Gary W. Henderson, Water Division Manager .Ey✓U SUBJECT: AMENDMENT NO. 9 TO U.S. ARMY CORPS OF ENGINEERS LICENSE FOR SALINAS RESERVOIR RECOMMENDATION Approve Amendment No. 9 to the Salinas Dam License Agreement to extend the permit date to June 30, 2012, 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 1943 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 eight times since the original license was issued. Amendment No. 9, which was initiated by the Corps of Engineers, extends the termination date to June 30, 2012; all other terms of the license remain unchanged. The parties to the agreement plan to discuss the contract extension beyond June 30, 2012 in the coming months. 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. ATTACHMENT Amendment No. 9 to U.S. Army Corps of Engineers License for Salinas Reservoir G:1CAR Reoorts12011 Council Agenda Reoortslsalinas corns license amendment 9.DOC C12-1 L,T'fA.G41 M LED%1T . Secretary of the Army. License No. DA-04-353-ENG-1943 Salinas Dam and Reservoir Area San Luis Obispo County, California AMENDMENT NO. 9 THIS AMENDMENT NO. 9, 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 Eine 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 measuring the amount of water diverted to the City Distribution System,the amount of water diverted to be controlled and C12-2 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 fora period of five (5) years;ending 16 December 1988; and WHREAS, 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. WHEREAS,by Amendment No 8, the license was amended to extend the term for anadditional five (5)years, ending 30 June 2011. 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 one year, beginning 1 July 2011 and ending 30 June 2012. 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. C12-3 IN WITNESS WHEREOF,I have hereunto set my hand by authority of the Secretary of the Army this day of 2011 CONTRACTING OFFICER Asset Management Division THIS AMENDMENT No. 9 together with,the provisions and conditions thereof, is hereby accepted this day of , 2011. CITY OF SAN LUIS OBISPO BY: TITLE: C12-4