HomeMy WebLinkAbout03/20/1989, 1-C - DALIDIO WELL AGREEMENT MEETING DATE:
A�lll city of San tins OBISpo Marcb 14 1989
COUNCIL AGENDA REPORT " uM
FROM: William T. Hetland ( PREPARED BY: Allen Short
Utilities Director Water Division Manager
SUBJECT: Dalidio Well Agreement
RECOMMENDATION: By motion authorize staff to continue to
negotiate an agreement between the Dalidio family
and the City, and to authorize the City
Administrative officer to execute the agreement
with authorized expenditures of up to $100,000
dollars.
BACKGROUND:
At the March 3 , 1989 Emergency Council Meeting, Sandy Merriam,
representing the Dalidio family, presented the City Council with an
offer to use groundwater located beneath the Dalidio property. In
order to obtain the water, the City could use either existing
agricultural wells, or develop and construct new wells. The offer
was made to assist the City through it's present water shortage.
Specifically, the offer was to supply groundwater on an emergency
basis and would be good throughout the duration of the drought.
Since the proposal, a number of meetings have been held with City
staff and representatives of the Dalidio family. During these
exchanges a number of issues have been raised and discussed. They
are listed below:
1. The City will try to use the agricultural wells and will
coordinate the use with the irrigation operations.
2 . The City will develop, construct, install and operate the
new well if required.
3 . The Dalidio family will own the well after the drought
condition is over.
4 . Staff is in the process of developing a financial plan that
would reimburse the Dalidio family for all of the fixed and
well costs, if any. In addition, the Dalidio family is
considering a flat fee for water use, not to exceed $50, 000
dollars.
5. Development of a one year agreement with the possibility of
an extension.
6. Possible long term City use after the drought has ended.
The immediate concern of staff is the ability of the water to meet
the current water quality standards established by both the State
and Federal governments. If the water is satisfactory and the
proper permits are obtained water could be flowing into the City's
distribution system within 75 days. However, if the water does not
meet established standards, development and construction of a new
well will be required. Construction and development of a new well
could delay the ability to supply water for up to four months. The
City is in the process of amending its contract with John L. Wallace
for future well development..
city Of San DAIS OBISpo
COUNCIL AGENDA REPORT
Page 2
The Dalidio family is in the process of assembling a rough draft
agreement for review by City staff. Once the negotiation process
has taken place and the agreement finalized, staff will proceed with
the intertie of the agricultural wells or the development of a new
one. In the interim, staff is proceeding on an interconnect design
which will tie the wells into the City distribution system. In
addition, staff is in the process of obtaining the proper water
quality analyses. Staff has contacted the State Department of
Health Services and is in the process of obtaining permits for use
of existing wells.
CONSEQUENCES OF NOT TAKING ACTION:
If the project does not proceed forward:
The City will not be able to obtain an additional 2000 acre
feet of water per year.
The City will continue to operate as status quo and will
require a greater degree of mandatory conservation. .
FINANCIAL IMPACT:
The actual cost is not available at this time. Adequate funds are
available in the water fund budget. i
i
RECOMMENDATION•
I
Authorize staff to continue to negotiate an agreement between the
Dalidio family and the City, and to authorize the City
Administrative Officer to execute the agreement with authorized
expenditures of up to $100, 000 dollars.
i
APPROVED:
City dministrative Officer
City A t r
i
Finan&e Direct
Utilities Director