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HomeMy WebLinkAbout03-05-2019 Item 14 - Cal Poly Master Plan and Regional Water Supply Alternatives Department Name: Utilities Cost Center: 6001 For Agenda of: March 5, 2019 Placement: Study Session Estimated Time: 90 minutes FROM: Aaron Floyd, Interim Utilities Director Prepared By: Jennifer Metz, Utilities Projects Manager SUBJECT: CAL POLY REGIONAL WATER SUPPLY ALTERNATIVES AND SHORT-TERM WATER AGREEMENTS RECOMMENDATION 1. Receive an update on Cal Poly regional water supply alternatives ; and 2. Discuss policy direction on short -term water supply agreements for outside City deliveries and provide direction on whether existing policy should be broadened to include both non-potable and recycled water supplies. REPORT-IN-BRIEF In this study session, City staff will provide an update on its work with Cal Poly staff to understand the projected water demand associated with the 2035 Cal Poly Master Plan and potential regional water supply alternatives potentially available on a temporary basis to meet demand s until such time as long-term supplies can be secured by the University. The City is uniquely positioned to assist Cal Poly in meeting its Master Plan goals as both a regional water partner and in support of City goals, particularly as it relates to additional on campus housing. The purpose of this study session is for the Council to provide policy direction for non-potable and recycled short-term water supply agreements. This agreement could enable the University to accelerate the much-needed housing and related infrastructure replacement until such time as long-term water supplies are secured and the infrastructure to support it is constructed. DISCUSSION The City has successfully partnered with State and regional agencies on water supply projects for many years, such as the construction of Whale Rock Reservoir and the Nacimiento Water Project. 2035 Cal Poly Master Plan In October 2018, staff from the City’s Community Development and Utilities Departments began working with Cal Poly staff to identify regional water supply alternatives with the potential to meet future University water demand and improve water supply resiliency. The City and Cal Poly entered into a Working Agreement in November (Attachment A) for the purpose of Packet Pg. 115 Item 14 identifying mutually beneficial water supply alternatives that would “do no harm” to either entity. As the Council may recall, when Cal Poly released a Draft EIR for the 2035 Master Plan, the City provided a substantial list of comments in response . One of the broadest concerns identified at the time was water supply, both in terms of amount of water and resiliency. Cal Poly currently only has one source of potable water, which is raw water from Whale Rock Reservoir that is treated and delivered by the City under contract. Through the process described in the Working Agreement, City staff gained an understanding of Cal Poly’s current water use and future water demand, discussed a broad range of regional water supply alternatives, and identified opportunities to increase the resiliency and redundancy of both City and Cal Poly water supplies. Thirty alternatives were discussed (At tachment B) as part of this brainstorming exercise. The prioritization criteria used for this effort included Availability/Timeframe, Potential Partners, Energy and Sustainability, Engineering and Technical Considerations, Construction and Operational Cost s, Environmental Impact/Permits, and an estimate of Water Quantity. Each alternative was also characterized as to whether it provided resiliency, redundancy, or any potable water offset . Cal Poly identified the following as its top water supply alternative s: 1. University to construct and operate a water reclamation facility and on-site water storage to produce a recycled water supply for agriculture and landscape irrigation use. 2. University to obtain water from the City of San Luis Obispo. 3. University to obtain water rights to the Nacimiento Water Project. 4. University to obtain water from the State Water Project . Cal Poly plans to include further analysis of water supply alternatives in the Draft Environmental Impact Report for the 2035 Cal Poly Master Plan. At this time, Cal Poly has not requested water service from the City to support development proposed under the Master Plan. Water Service from the City One of the top alternatives identified through this process involves the City supplying water to Cal Poly. As Cal Poly is located outside of the City’s jurisdictional boundaries, City staff met with the Executive Director from the San Luis Obispo Local Agency Formation Commission (LAFCO) to discuss the legal framework for providing water service to the University. The City’s existing agreement with Cal Poly for water treatment and distribution services predates the Cortese–Knox Hertzberg Local Government Reorganization Act of 2000 (California Government Code §56000 et seq.). The provision of potable water supp ly resources outside of the City can be allowed under an Outside User Agreement approved by LAFCO if the agreement is a step on the path towards annexation, as the City has done with the Fiero Lane area . However, Cal Poly is not requesting annexation into the City. During this conversation with LAFCO it was confirmed that contracts for non‐potable water are exempt from the Outside User Agreement requirement per Government Code §56133(e). Under this scenario, to comply with the Cortese– Knox Hertzberg Act, the City could only deliver new non-potable water supplies to the University. City staff discussed the potential for a non-potable water delivery agreement with Cal Poly to support ongoing agricultural operations on its land. Water demand for Cal Poly’s agricultural lands is estimated at up to 320 acre-feet annually. Staff would recommend that any water supply Packet Pg. 116 Item 14 agreement be for a “short -term,” such as five years or less. The City currently provides non-potable water to Cal Poly for agricultural use from Cal Poly’s Whale Rock water supply, so no additional infrastructure would be required to increase this service. The City has a stated policy interest in pursuing a short -term agreement with the University to provide either non-potable or recycled water that in turn is used to offset potable water demand. This policy interest is found in the City’s General Plan, Land Use Element: 1.12.2. Cal Poly The City shall encourage Cal Poly not to change its 2001 Master Plan enrollment targets in a way that would exceed campus and community resources. The City shall encourage Cal Poly to provide additional on-campus housing, enhanced transit service, and other measures to minimize impacts of campus commuting and enrollment. Cal Poly should actively engage the community during updates or amendments to the Campus Master Plan and fully mitigate impacts to the City, including environmental and quality of life impacts to nearby neighborhoods. 2.6.1. Cal Poly The City shall encourage Cal Poly to build housing on campus for all of its students, to the extent feasible. On-campus housing should be expanded at least as fast as enrollment increases. Consideration shall be given for housing for faculty and staff as student enrollment increases. 2.6.4. Location The City shall encourage the development of housing likely to attract faculty, staff, and students to locate close to Cal Poly. The City shall work with Cal Poly to facilitate faculty and staff owning or renting housing in adjacent neighborhoods. The City is uniquely posit ioned to assist Cal Poly in meeting its Master Plan goals as both a regional water partner and in support of City goals, particularly as it relates to additional on campus housing. Additional on-campus housing is a critical factor to addressing housing issues and will supply housing that will alleviate both the current and future housing issues. The above graphic shows that if Cal Poly achieves its goal of increasing the percentage of students living on campus from 35 percent to 65 percent, with an enrollme nt of 25,000 students, it would mean Packet Pg. 117 Item 14 Non-potable water, or raw water, is water supplied from one of the City’s surface water reservoirs (Whale Rock, Salinas, or Nacimiento) or groundwater, that has not been treated to drinking water standards at the City’s Water Treatment Plant. Recycled water is highly-treated wastewater supplied from the City’s Water Resource Recovery Facility delivered through a purple pipe system for landscape irrigation. Any surplus recycled water is currently discharged to San Luis Obispo Creek. 6,500 fewer students living off campus. To give that some perspective, it is equivalent to approximately 1,500 to 2,500 units in the City. Staff recommends that should Council be inclined to support short -term non-potable or recycled water service to Cal Poly while the University secures a permanent water supply, that it be specifically related to housing production. Short-term Water Supply Agreements The City and other local agencies recognize there is a continued need for regional water supply solutions. As part of the adoption of the City’s Recycled Water Master Plan in 2017, the City Council authorized staff to negotiate an agreement for delivery of recycled water outside the city limits consistent with policies and findings identified in the General Plan. At that time, the City was looking at supplying recycled water to the Edna Valley or to Cal Poly. Supplying recycled water delivery to Cal Poly from the City’s Water Resource Recovery Facility was explored and was found to be costly due to the pumping and pipeline infrastructure that would be needed. Supplying additional non- potable water (raw water) through a short-term agreement was not anticipated at that time. Therefore, staff is seeking direction on whether to broaden existing General Plan Policy 1.13.2 and Program A7.3.4 to include both non-potable and recycled water supplies. General Plan, Land Use Element, Policy 1.13.2 states: Provision of recycled water outside of City limits may only be considered in compliance with Water and Wastewater Element Policy A 7.3.4 and the following findings: A. Non-potable/recycled water is necessary to support continued agricultural operations. B. Provision of non-potable/recycled water will not be used to increase development potential of property being served. C. Non-potable/recycled water will not be further treated to make it potable. D. Prior to provision of non-potable/recycled water, the property to be served will record a conservation, open space, Williamson Act, or other easement instrument to maintain the area being served in agriculture and open space while recycled water is being provided. General Plan, Water and Wastewater Management Element, Program A 7.3.4 states: Consider the potential to deliver available recycled water supplies to customers outside the city limits, including analysis of policy issues, technical concerns, and cost recovery, provided it is found to be consistent with the General Plan. Packet Pg. 118 Item 14 If broadening the existing policy and program supported by the City Council, staff would prepare a General Plan amendment and the City could provide non-potable or recycled water for agricultural purposes, consistent with existing findings to Cal Poly or other users, as well. Staff is also seeking policy direction related to short-term water supply agreements. Staff recommends that any short-term agreements be crafted to include provisions for service interruption or reduction, due to operational issues or climatic events, reservoir levels, water demand forecasting, or water quality. Meaning, during a water shortage emergency, municipal water deliveries would be prioritized. Per the 2018 Water Resources Status Report, the City’s total water demand for Water Year 2018 was 5,225 acre-feet and annual availability was 10,130 acre-feet. The City’s projected “primary” water supply for 2035 is 7,496 acre feet annually with a future “reliability reserve” of 1,499 acre feet.1 Previous Council or Advisory Body Actions In 2015, the City Council approved Resolution No. 10676 providing Guiding Principles based on General Plan Policies to provide recommendations on the Cal Poly Master Plan for their consideration (Attachment C). These Guiding Principles included coordinating future development plans with the City’s Utilities and Community Development Department. In January of 2018, the City submitted a comment letter to the CSU Board of Trustees on the Cal Poly 2035 Master Plan Draft Environmental Impact Report, dated November 2017 (State Clearinghouse No. 2016101003) related to water supply and other potential impact areas. The City’s comment letter articulated concerns with the water supply analysis including underestimating potential water needs and improperly relying on development of unknown future water sources needed for the 2035 Master Plan. Policy Context Although the City has an agreement with Cal Poly to provide water treatment and water distribution services, the City’s water policies identified in the General Plan, Water and Wastewater Management Element (WWME), including utilizing multiple water resources to meet water supply needs and establishing primary water supply, reliability reserve, and secondary water supplies, do not apply to Cal Poly because it is located outside of the city limits. Similarly, the City’s Urban Water Management Plan, including the City’s Water Shortage Contingency Plan, does not apply to Cal Poly. 1 “Primary” water supply is the amount of water needed to serve the estimated 2035 population (57,200 persons) identified in the General Plan, Land Use Element. Primary water supply is calculated using population and 117 gallons per capita per day (gpcd) in the General Plan, Water and Wastewater Management Element (WWME), Policy A5.2.2. The quantity of water for the “reliability reserve” is defined in WWME Policy A 5.2.3, at 20 percent of the annual “primary” water supply. The City’s “reliability reserve” will increase with population over time to 1,499 acre feet annually with the projected 2035 population of 57,200 persons. Packet Pg. 119 Item 14 WWME Program A2.3.1 does address the collaborative nature of staff’s work with Cal Poly. It states that the City will “Work cooperatively on regional water issues and water resource planning (Water Resource Advisory Committee, Whale Rock Commission, Groundwater Sustainability Commission, etc.).” The City has worked with Cal Poly on the Whale Rock Commission since the 1950s when Whale Rock Reservoir was constructed. Like the City, Cal Poly’s safe annual yield from Whale Rock Reservoir was reduced based on updated modeling conducted following the end of the drought in 2017. Cal Poly’s safe annual yield from Whale Rock Reservoir is 959 acre-feet. Whale Rock Reservoir is currently Cal Poly’s only potable water supply source. Public Outreach The status of the City’s water supplies is highlighted annually in the publication of the Water Resources Status Report in accordance with the General Plan, Water and Wastewater Management Element, Policy A5.3.1. The 2018 Report was provided to the City Council at its January 15, 2019 meeting. CONCURRENCES The Community Development Department concurs with the recommendations in this report. ENVIRONMENTAL REVIEW No environmental review is required for this Study Session. Cal Poly is the lead agency for its 2035 Master Plan EIR and is conducting further analysis on water supply alternatives described in this report. The ultimate decision maker for Cal Poly’s 2035 Master Plan is the Board of Trustees of California State University (Board of Trustees). Cal Poly staff anticipates recirculation of the DEIR and presentation the 2035 Master Plan and DEIR to the Board of Trustees in the Fall of 2019 for their consideration. Should the City Council provide policy direction on short -term water supply agreements, staff would return to the City Council as required by the California Environmental Quality Act (CEQA). Packet Pg. 120 Item 14 FISCAL IMPACT Budgeted: N/A Budget Year: N/A Funding Identified: N/A Fiscal Analysis: Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund State Federal Fees Other: Water Fund N/A N/A N/A Total N/A N/A N/A There is no fiscal impact associated w ith Council receiving an update on Cal Poly regional water supply alternatives. The City is committed to good fiscal health and the delivery of quality services to the community. The City adopted a Fiscal Health Response Plan (FHRP) in 2018, committing t o doing business differently. Consistent with the FHRP and General Plan, Utilities Department has been exploring opportunities to leverage its water supply resources through short -term water supply agreements. These agreements could provide revenue to acce lerate the City’s much needed infrastructure replacement that would otherwise be funded through water rate increases. Should the City Council provide policy clarification on short -term water agreements, staff would return to Council with the fiscal analysis specific to any future agreement. ALTERNATIVES 1. The Council could elect not to provide policy clarification at this time. Staff does not recommend this alternative, as the City has opportunities to leverage its water supply resources through short -term agreements consistent with the FHRP and General Plan. 2. The City Council could request additional information related to short -term water agreements in order to provide policy clarification and feedback. If the City Council feels significant additional info rmation is required to proceed, it can direct staff to gather that information and return at a later date. Attachments: a - City Poly Working Agreement signed b - Cal Poly Water Supply Alternatives c - Resolution 10676 Providing City input to Cal Poly Packet Pg. 121 Item 14 WORKING AGREEMENT BETWEEN BOARD OF TRUSTEES OF THE CALIFORNIA STATE UNIVERSITY AND CITY OF SAN LUIS OBISPO This WORKING AGREEMENT (AGREEMENT) is hereby made and entered into by and between the City of San Luis Obispo, hereinafter referred to as CITY, and Board of Trustees of the California State University on behalf of California Polytechnic State University, San Luis Obispo, hereinafter referred to as UNIVERSITY. A. PURPOSE: The purpose of this AGREEMENT is to develop a clear framework between the CITY and the UNIVERSITY that will guide the exploration of mutually-beneficial water resiliency and redundancy alternatives that have potential to meet future UNIVERSITY water demand and improve the UNIVERSITY’s water supply resiliency. B. UNIVERSITY SHALL: Work in partnership with the CITY by providing adequate staffing resources, authority, and all requested data and information in a timely manner to ensure an efficient process and creative alternatives are explored to satisfy the stated AGREEMENT purpose. C. CITY SHALL: Work in partnership with the UNIVERSITY by providing adequate staffing resources, authority, and all requested data and information in a timely manner to ensure an efficient process and creative alternatives are explored to satisfy the stated AGREEMENT purpose. D. IT IS MUTUALLY UNDERSTOOD AND AGREED BY AND BETWEEN THE PARTIES THAT: 1. MUTUAL BENEFIT. UNIVERSITY and CITY will collaborate to identify water supply alternatives to improve current conditions, add resilience and redundancy, and be respectful of needs of both sides.. The process will identify water supply alternatives that benefit at least one of the participants and cause no harm to either. 2. COMMUNICATION AND COLLABORATION. In the course of this endeavor both the UNIVERSITY and CITY will share information and engage in dialogue that should remain with the PRINCIPAL CONTACTS and his/her designees. The City and University shall comply with all public records act requests and shall notify each party of any requests. 3. PROCESS. The development of mutually-beneficial water supply alternatives will be completed through the following milestones. A process summary is provided in Exhibit A. Packet Pg. 122 Item 14 Working Agreement Between California Polytechnic State University, San Luis Obispo and City of San Luis Obispo Page 2 MILESTONE COMPLETION DATE 1. Execute Working Agreement 10/15/2018 2. Agree on Rules of Engagement and Outcomes 10/15/2018 3. Review existing City water supplies, policies, and growth projections 10/22/2018 4. Review current University water use and customers (ag., enrollment, other) 10/22/2018 5. Review proposed University growth and develop demand projections 10/22/2018 6. Identify timeline associated with future City and University water demand 10/22/2018 7. Identify mutually beneficial water supply alternatives 11/02/2018 8. Define water supply alternative evaluation protocol 11/06/2018 9. Evaluate policy, technical, and financial considerations for each alternative 11/16/2018 10. Prepare alternatives recommendation for University and City consideration 12/21/2018 11. Present alternatives recommendation to City Council, if needed 2/19/2019 This process is not intended to be a negotiation but may provide information for future negotiations between the CITY and UNIVERSITY. 4. PRINCIPAL CONTACTS. The principal contacts for this AGREEMENT are: CITY: Name: Role: Michael Codron, City Lead UNIVERSITY: Name: Role: Cody VanDorn, University Lead 5. PARTICIPATION IN SIMILAR ACTIVITIES. This AGREEMENT in no way restricts UNIVERSITY or CITY from participating in similar activities with other public or private agencies, organizations, and individuals. 6. TERMINATION. Either party, upon thirty (30) days written notice, may terminate the AGREEMENT, or in part, at any time before the date of expiration. 7. NON-OBLIGATING DOCUMENT. This agreement is neither a fiscal nor a funds obligation document, or an obligation to provide an additional water supply. Any final option will be outlined in separate agreements that shall be made in writing by representatives of the parties and shall be independently authorized by appropriate statutory authority and with applicable laws and regulations. This agreement does not provide such authority. Each party shall be fiscally responsible for their own portion work performed under the AGREEMENT. 8. COMMENCEMENT/EXPIRATION DATE. This AGREEMENT is executed as of the date of last signature and is effective through February 28, 2019 at which time it will expire unless extended by mutual written consent of both parties. Packet Pg. 123 Item 14 Packet Pg. 124 Item 14 EXHIBIT A: WATER SUPPLY ALTERNATIVES – TECHNICAL PROCESS SUMMARY Confirm Baseline Conditions, Data Sources & Projection Assumptions • How was the baseline condition determined? • What assumptions are used? Are these assumptions “strong” or do they have some level of risk or bias? • How much water is needed and for what uses? • How is water demand calculated? • When is additional water needed? • What could change over time? • Does the projection method align with best practices? • How is future climate change addressed? Is an adequate water supply buffer included? • Are there knowledge gaps needing to be filled? • Are the City’s and University’s projection methods consistent? Or how do they differ? Is the University’s projection method consistent with other CSU campuses? Or how do they differ? • DELIVERABLE: University to summarize “Confirm” stage in a technical memorandum. Brainstorm Short- & Long-Term Alternatives • Identify where additional water supplies might come from using uncensored and creative thinking or “green light” thinking • How could the additional water supply be used? • When could additional water supplies be available? • DELIVERABLE: Short- and Long-Term Alternatives matrix. Analyze Alternatives • What does the alternative provide (new water supply/resiliency/redundancy/other) • What are the risks/benefits? • What is the cost? • Is the alternative mutually beneficial? • What are the political ramifications of the alternative? • What is the political approval process of the alternative? • DELIVERABLE: Short and Long-Term Alternatives matrix with comparative analysis. Prioritize Alternatives • Agree upon a methodology for alternative evaluation (such as triple bottom line) • Assign weighting factors to agreed-upon variables • Verify prioritization • DELIVERABLE: Short and Long-Term Alternatives matrix with prioritization. Recommend Alternatives/Decide • What alternatives does staff recommend to the decision makers? • DELIVERABLE: City Council Staff Report, University to Prepare a Letter Requesting Water Supply and Identification of Preferred Alternative. Packet Pg. 125 Item 14 RESOLUTION NO. 10676 (2015 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, PROVIDING CITY INPUT TO CAL POLY FOR CONSIDERATION IN THEIR MASTER PLAN UPDATE PROCESS GENP-2088-2015) WHEREAS, the City Council of the City of San Luis Obispo has established Guiding Principles based on General Plan Policies which the Planning Commission has used as a basis to provide recommendations on the Cal Poly Master Plan; and, WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a public meeting in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on October 28, 2015, for the purpose of reviewing draft land use concepts under consideration by Cal Poly for the Campus Master Plan Update and provide recommendations to the Council based on Guiding Principles supported by General Plan policy; and WHEREAS, the City Council of the City of San Luis Obispo conducted a public meeting in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on November 17, 2015, for the purpose of considering Planning Commission recommended input on land use concepts being considered for final inclusion in the Cal Poly Master Plan Update; and WHEREAS, the City Council has duly considered all evidence, including the testimony of the public and interested parties, recommendations of the Planning Commission, the evaluation and recommendations by staff, and refined land use concepts provided by Cal Poly, and presented at said hearing. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Based upon all the evidence, the Council makes the following findings: 1. City comments to Cal Poly are based on City Land Use Element Policy for Neighborhood Wellness goals to preserve and enhance the quality of life within each neighborhood (LUE 2.1 Neighborhood Focus, LUE 2.3.11 Residential Project Objectives) and provide high quality public services ensuring that demands do not exceed resources (LUE Goal #17). 2. City comments to Cal Poly are consistent with Land Use and Housing Element policies to facilitate faculty and staff housing in neighborhoods adjacent to Cal Poly and to locate fraternities and sororities on the Cal Poly campus (LUE 2.6.4 & HE 8.4 through 8.7). Packet Pg. 126 Item 14 Resolution No. 10676 (2015 Series) Page 2 3. City comments to Cal Poly are consistent with Circulation Element Policy to coordinate planning of Transportation with other affected agencies such as Cal Poly and support the development of a circulation system that balances the needs of all circulation modes (CE 1.6.1). 4. City comments to Cal Poly are consistent with Land Use Element Goals and Conservation and Open Space Element Policy to preserve protect scenic vistas, preserve agricultural land, and enhance wildlife habitat on land surrounding the City. (LUE Goals 4 & 6 and COSE 8.1). 5. City comments to Cal Poly consistent with Safety Element policy to ensure adequate fire services are available concurrent with development (SE 3.0) and Wastewater Element policy and new development pay its proportionate "fair share" of expanded collection system capacity and upgrades. SECTION 2. Environmental. City of San Luis Obispo input on land use concepts under consideration by Cal Poly (agency with jurisdiction) for further development in the Master Plan update process is not an action which is subject to CEQA. SECTION 3. Recommendation. The City Council of San Luis Obispo does hereby approve the following input to Cal Poly for consideration in their Master Plan update process: 1) Explore implementation of programs and incentives for faculty and staff to live within existing neighborhoods (not on campus) to stabilize neighborhoods close to campus. 2) Master Plan policies/principles should address neighborhood compatibility in terms of scale, density, character of development and residential neighborhoods should be limited and only be designated for staff, faculty and family housing. Neighborhood Sensitivity zones should also be added to the residential neighborhood area west of Highway 1 that is adjacent to existing City neighborhoods. 3) The Master Plan update should include recommendations of the Neighborhood Wellness/Community Civility Report where applicable. 4) Proposed Residential Neighborhood Development should be sited and developed in order to avoid or minimize impacts to scenic view sheds and environmental resource impacts (riparian, creek, agriculture). S) New development in the Poly Canyon area and on land adjacent to City Open Space should consider regional trail connections and coordinated with City and US Forest Service Staff. R 10676 Packet Pg. 127 Item 14 Resolution No. 10676 (2015 Series) Page 3 6) Large events resulting from new facilities and expansion of existing facilities (e.g. Arena, Agriculture Events Center, Mott Gym, Spanos Stadium, etc.) that have the potential to affect the City transportation system should include advance notification and coordination with City staff to minimize impacts; and any potential cumulative impacts on the City's infrastructure, including but not limited to the transportation, streets, and bikes systems associated with large events at those facilities should be fully evaluated and mitigated in the Campus Master Plan Update EIR. 7) Impacts to City emergency services and Police mutual aid response should be evaluated and mitigated since the expansion of these facilities have the potential to result in increased calls for fire, rescue, and medical service during large events. 8) Further evaluation of the wastewater facility west of California Boulevard should assess potential impacts on existing uses in the vicinity and consider relocation of the facility to a location with greater separation from existing residential neighborhoods and City boundaries. 9) Master Plan and EIR should explore the impact of growth on City services, including but not limited to recycled water, wastewater, police, fire, and neighborhood wellness. 10) Coordinate future development plans for review and cooperation in planning with City Departments (Transportation, Police, Fire, Utilities, Natural Resources, Planning). 11) Fiscal Impact Analysis. In order to accurately evaluate potential service impacts the University should prepare a Fiscal Impact Analysis. 12) The final Refined Master Plan Update should consider the City's Guiding Principles for the Master Plan Update and relevant City General Plan policies for which they are based. Upon motion of Council Member Carpenter, seconded by Council Member Christianson, and on the following roll call vote: AYES: Council Members Carpenter, Christianson, and Rivoire, and Mayor Marx NOES: Vice Mayor Ashbaugh ABSENT: R 10676 Packet Pg. 128 Item 14 Resolution No. 10676 (2015 Series) The foregoing resolution was adopted this 17` h day of November 2015. Ma or Ja Marx ATTEST: olabehere City Clerk APPROVED AS TO EDRM: f' -Christine D City Attorney Page 4 IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this _J day of c 1 R 10676 Packet Pg. 129 Item 14 3/5/2019 Item 14, Staff Presentation 1 Study Session: Cal Poly Regional Water Supply Alternatives and Short-Term Water Agreements March 5, 2019 Recommendations 1.Receive an update on Cal Poly regional water supply alternatives; and 2.Discuss policy direction on short-term water supply agreements for outside City deliveries and provide direction on whether existing policy should be broadened to include both non-potable and recycled water supplies. 1 2 3/5/2019 Item 14, Staff Presentation 2 Cal Poly Regional Water Supply Alternatives Cal Poly Master Plan ~ Background In 2015, Council approved a resolution providing input to Cal Poly for consideration in their Master Plan update process In January 2018, the City submitted a comment letter on Cal Poly’s 2035 Master Plan EIR on water supply and other potential impact areas 3 4 3/5/2019 Item 14, Staff Presentation 3 City / Cal Poly Partnership Worked with Cal Poly on the Whale Rock Commission since the 1950s Agreement to treat water and wastewater October 2018 to February 2019, CDD and Utilities staff worked with Cal Poly to identify regional water supply alternatives Policy Support General Plan, Land Use Element: 1.12.2. Cal Poly The City shall encourage Cal Poly not to change its 2001 Master Plan enrollment targets in a way that would exceed campus and community resources. The City shall encourage Cal Poly to provide additional on-campus housing, enhanced transit service, and other measures to minimize impacts of campus commuting and enrollment. Cal Poly should actively engage the community during updates or amendments to the Campus Master Plan and fully mitigate impacts to the City, including environmental and quality of life impacts to nearby neighborhoods. 2.6.1. Cal Poly The City shall encourage Cal Poly to build housing on campus for all of its students, to the extent feasible. On-campus housing should be expanded at least as fast as enrollment increases. Consideration shall be given for housing for faculty and staff as student enrollment increases. 2.6.4. Location The City shall encourage the development of housing likely to attract faculty, staff, and students to locate close to Cal Poly. The City shall work with Cal Poly to facilitate faculty and staff owning or renting housing in adjacent neighborhoods. 5 6 3/5/2019 Item 14, Staff Presentation 4 Working Agreement Purpose Develop a clear framework between the City and the University that will guide the exploration of mutually-beneficial water resiliency and redundancy alternatives that have potential to meet future University water demand and improve the University water supply resiliency. Reviewed City Water Policies and Multi-Source Water Portfolio Whale Rock Reservoir. 7 8 3/5/2019 Item 14, Staff Presentation 5 2018 City Water Demand 5,225 acre feet Reliability Reserve will increase over time to 1,499 acre feet as Population increases Water Supply Definitions “Resiliency” multiple water supply sources to draw from regardless of disruptive events that may occur “Redundancy” duplication of critical water supply infrastructure to increase reliability, such as via a backup pipeline 9 10 3/5/2019 Item 14, Staff Presentation 6 Water Supply Definitions “Offset” creating a reduction in potable water demand through the provision of a non-potable or recycled water supply Cal Poly Water Demand Cal Poly existing water demand from its Whale Rock Reservoir entitlement is: 320 acre feet for Agricultural Uses 600 acre feet for Academic Uses, Recreation/Athletics, and Housing Cal Poly is estimating a future demand of an additional 681 acre feet, which includes a resiliency buffer of 180 acre feet 75 percent of future demand is for proposed on-campus housing 11 12 3/5/2019 Item 14, Staff Presentation 7 Regional Raw Water System “Green Light” Thinking Where could additional water supplies come from? How could the additional water supply be used? When could additional water supplies be available? Product: 30 Short- and Long-Term Alternatives 13 14 3/5/2019 Item 14, Staff Presentation 8 Cal Poly Master Plan Water Supply Alternatives Matrix Regional Water Supply Opportunities State Water Project City of San Luis Obispo Water Supply Resources On-Campus Water Resource Recovery Facility Desalination Other Alternatives 15 16 3/5/2019 Item 14, Staff Presentation 9 Cal Poly’s Top Water Supply Alternatives University to construct and operate a water resource recovery facility and on-site water storage University to obtain water from the City University to obtain water rights to the Nacimiento Water Project University to obtain water from the State Water Project Current Status Cal Poly has identified water supply alternatives to meet 2035 Master Plan and continues to evaluate alternatives Cal Poly has not made a water supply request to the City - brought to Nacimiento Commission City continues its long-term water supply planning for growth beyond 2035, recognizing potential for further climate change City may have a short-term opportunity to provide a “bridge” water supply until Cal Poly has completed acquiring a new water supply or is producing a recycled water supply to offset current potable water use 17 18 3/5/2019 Item 14, Staff Presentation 10 Short-term Water Supply Agreements Cal Poly Recycled water to Edna Valley Nacimiento Water Project Surplus Water Fiscal Health Response Plan Short-term Water Supply Agreements Regional Partnership Opportunities 19 20 3/5/2019 Item 14, Staff Presentation 11 Land Use Element •Updated in 2014 Water and Wastewater Management Element •Updated in 2018 General Plan – Existing Policy Land Use Element Policy 1.13.2. Provision of recycled water outside of City limits may only be considered in compliance with Water and Wastewater Element Policy A 7.3.4 and the following findings: A. Non-potable/recycled water is necessary to support continued agricultural operations. B. Provision of non-potable/recycled water will not be used to increase development potential of property being served. C. Non-potable/recycled water will not be further treated to make it potable. D. Prior to provision of non-potable/recycled water, the property to be served will record a conservation, open space, Williamson Act, or other easement instrument to maintain the area being served in agriculture and open space while recycled water is being provided. 21 22 3/5/2019 Item 14, Staff Presentation 12 General Plan – Existing Program Water and Wastewater Management Element Program A 7.3.4. Consider the potential to deliver available recycled water supplies to customers outside the city limits, including analysis of policy issues, technical concerns, and cost recovery, provided it is found to be consistent with the General Plan. Non-potable water, or raw water, is water supplied from one of the City’s surface water reservoirs (Whale Rock, Salinas, or Nacimiento) or groundwater, that has not been treated to drinking water standards at the City’s Water Treatment Plant. Recycled water is highly-treated wastewater supplied from the City’s Water Resource Recovery Facility delivered through a purple pipe system for landscape irrigation. Surplus recycled water is currently discharged to San Luis Obispo Creek. 23 24 3/5/2019 Item 14, Staff Presentation 13 Terms of up to five years allow for water demand forecasting Dependent upon volume, source, seasonality Climate change resulted in lowering of City’s total water supply Infrastructure issues, loss of source Development could not rely on short term supply Why Short-term? Short-term Water Supply Agreements Provisions for service interruption or reduction due to: Operational issues, Climate change, Reservoir levels, Water demand forecasting, or Water quality During a water shortage emergency, municipal water deliveries would be prioritized 25 26 3/5/2019 Item 14, Staff Presentation 14 Questions? Whale Rock oil pastel used with permission. Copyright 2018 Sally Landis www.sallylandis.com Recommendations 1.Receive an update on Cal Poly regional water supply alternatives; and 2.Discuss policy direction on short-term water supply agreements for outside City deliveries and provide direction on whether existing policy should be broadened to include both non-potable and recycled water supplies. 27 28 3/5/2019 Item 14, Staff Presentation 15 March 2019 Reservoir Levels 100% 84% 73% 0% 20% 40% 60% 80% 100% 120% Salinas Whale Rock Nacimiento Reservoir Capacity 29 30 3/5/2019 Item 14, Staff Presentation 16 16,811 78.3% 11,060 84.2% 4,039 97.35% 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 City Cal Poly CMC March 4, 2019 - Whale Rock Storage (in acre feet)Acre FeetWhale Rock Partners City of San Luis Obispo -Water Resource Availability Water Resource Acre Feet Description Salinas & Whale Rock Reservoirs 4,910 Safe AnnualYield 1 Nacimiento Reservoir 5,482 Dependable Yield 2 Recycled Water 238 2017 AnnualUsage 3 Siltation from 2010 to 2060 (500) WWME Policy A 4.2.2 4 10,130 2018 Annual Availability NOTES: 1.Safe Annual Yield wasdetermined from computer model updated in 2018. 2.Dependable Yield is the contractual amount of water the City has rights to from Nacimiento Reservoir. 3.The quantity of recycled water included is the actual prior year’s recycled water usage (calendar year 2017) per General Plan Waterand WastewaterManagementElement Policy A 7.2.2. 4.Reservoir siltation is a natural occurrence that reduces storage capacity over long periods, resulting in the reduction of safe annual yield. 31 32