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HomeMy WebLinkAbout07/05/1995, 5 - SALINAS RESERVOIR EXPANSION PROJECT OWNERSHIP TRANSFER AGREEMENTS. CI Ly O f san LUIS OBISPO MEETING D 5, Jul 5, 1995 COUNCIL AGENDA REPORT ITEM NUMSER: FROM: John Moss A Prepared By: Gary W. Henderson 4-*m Utilities UKrector Water Division Manager SUBJECT: Salinas Reservoir Expansion Project Ownership Transfer Agreements. CAO RECOND4ENDATION: By Motion, approve the language for the ownership transfer agreements and authorize the Mayor to execute the agreements. DISCUSSION: Background The Salinas Dam,.facilities and surrounding property are owned by the federal government. The dam was originally constructed to serve water for Camp San Luis Obispo as well as the City of San Luis Obispo. The water from the reservoir has been used almost exclusively by the City of San Luis Obispo. Since the Salinas Reservoir no longer serves a federal purpose, the U.S. Army Corps of Engineers (Corps) has been interested in transferring the facilities to a local agency for many years. Both the City and the County of San Luis Obispo have expresser) interest in acquiring ownership of the facilities but in the past have not agreed on which agency should gain control. During discussions with the Corps of Engineers concerning the expansion project, the Corps indicated that the expansion project could not proceed until the ownership of the facilities were transferred to a local agency. This was done to motivate the City and the County to resolve the issue of which agency should gain control. In November 1992, the San Luis Obispo City Council endorsed the concept of transferring the ownership of the Salinas Dam, related facilities, and surrounding property to the County. This decision was based on the City's desire to proceed with the reservoir expansion project and the understanding that north county agencies would be opposed to the City controlling the operation of the valves which regulate water releases required under the live steam agreement. Agreements The City and County staff have negotiated the draft agreements intended to protect each agency's interests at the lake. These draft agreements have been presented to north county agencies for . their information. The draft agreements are included as attachments to this report. There are three separate agreements: the ownership transfer agreement, the operation and maintenance agreement and the recreation agreement. Following transfer of ownership, the facilities would continue to be operated as they have in the past. Theproperty transfer is operationally "transparent" and the only change will be who owns the-facilities. city of San s osispo COUNCIL AGENDA REPORT Salinas Reservoir Ownership Transfer Page 2 Although the approval of these agreements by the City and County do not formally transfer the property, the opponents to the expansion project are opposed to the property transfer because it may facilitate future approval of the expansion project. . Some of the key areas of the ownership transfer agreement are summarized below: ■ The agreement is between the City of San Luis Obispo, the County of San Luis Obispo, and Zone 17 of the San Luis Obispo Flood Control and Water Conservation District (Zone 17). ■ The ownership of the Salinas Dam, related facilities and surrounding 4,400 acres of property would transfer to Zone 17. ■ The County and Zone 17 would agree to endorse and,cooperate with the City in the furtherance of the City's Salinas Reservoir Expansion Project. ■ The County has the option to receive up to 100 acre-feet per year from Salinas Reservoir for Waterworks District#6, which serves the town of Santa Margarita, if the expansion project is accomplished. ■ If the County does not exercise the above option within 10 years or the County (through Waterworks District#6)decides to participate in the Nacimiento Project, the option is lost. ■ If the County exercises the above option, the agreement requires that they pay their prorita share of the costs associated with the reservoir expansion project and ongoing operation and maintenance expenses. ■ The City and County agree to share the costs (50-50)associated with the property transfer (ie. additional studies, etc.) up to a maximum County share of$100,000. North county agencies and individuals are opposed to the ownership transfer because this is one of the avenues available for halting the expansion project. In particular, a number of individuals and agencies are opposed to the language in the ownership agreement which states that "the County will agree to endorse and cooperate in the furtherance of the Salinas Reservoir Expansion Project". The intent of the language is to insure that if the property is transferred, the County would not obstruct the reservoir expansion project. This is an essential component of the agreement and is necessary to insure that the expansion project will not be blocked by the Board of Supervisors following property transfer. The expansion project will still have to satisfy all related requirements (ie. certification of the EIR and resolution of protests to the City's water rights permit) prior to beginning construction. ���� i ►�IIIIIII�II°j���l�l city of San S OBISpo COUNCIL AGENDA REPORT Salinas Reservoir Ownership Transfer Page 3 Additional Studies The approval of the ownership transfer agreements by the City and County does not formally transfer the property. Additional studies and processes must be completed prior to the property transfer, these include NEPA compliance, cultural resource study and hazardous material evaluation. If the County approves the draft agreements, the costs associated with these studies and other related ownership transfer expenses would be shared between the two agencies. Meeting with Corps On May 16, 1995, a meeting was held in Los Angeles with the Army Corps of Engineers staff. The meeting was attended by City and County staff, as well as representatives from.the City's consultant for the project (Woodward-Clyde). The meeting was held to discuss the ownership transfer and to identify the work necessary to proceed with the transfer. The Corps are anxious to accomplish the property transfer and strongly encouraged the City and the County to move forward with the approval of the agreements between the two agencies. The Corps has agreed that the ownership transfer and the expansion project are separate issues and an environmental assessment (EA) for the transfer of ownership will not require detailed analysis of the impacts associated with the expansion project. The impacts of the expansion project will be addressed in the environmental impact report that is currently being prepared. City and County staff indicated that the property transfer was beneficial for all parties involved, even if the expansion project does not happen. Benefits The transfer of ownership to the County Flood Control and Water Conservation District under the terms of the draft agreements has benefits for both the County and the City. The transfer will insure that the lake and surrounding property will be available for recreational purposes in the future and will remain under County control. The agreements also provide written contractual language between the City and the County Flood Control and Water Conservation District concerning the operations at the lake. Currently, the City and the District have no binding agreements concerning the operations and maintenance. The City and County staff have worked very positively for the past several years on issues concerning the budget and operational issues. The operations and maintenance agreement will provide the mechanism to insure that . the cooperative relationship will continue in the future. Follow-Up Action Following Council approval, the agreements will be presented to the County Board of Supervisors as the board of the Flood Control and Water Conservation District for approval. �..z-_1 city of San , ,s OBISpo COUNCIL AGENDA REPORT --------------- Salinas Reservoir Ownership Transfer Page 4 Once the agreements have been executed by both the City and County, staff will begin work with the Corps, our consultant and other involved agencies to complete the ownership transfer. FISCAL IIbIPACT The additional studies necessary to allow for the property transfer to occur have been estimated to cost between $100,000 and $400,000. At this point, it is anticipated that the costs will be in the mid to low end of the price range. The additional studies and costs are currently being refined through consultations with involved regulatory agencies and will be presented to Council in the near future. Attachments: A. Salinas Reservoir Ownership Transfer Agreement B. Salinas Reservoir Operation and Maintenance Agreement C. Joint Powers Agreement between Zone 17 of the San Luis Obispo County Flood Control and Water Conservation District and the County of San Luis Obispo for Operation of the Santa Margarita Lake Regional Park and Natural Area SALINAS RESERVOIR OWNERSHIP TRANSFER AGREEMENT THIS AGREEMENT is made this day of , 1995, by and between the CITY OF SAN LUIS OBISPO ("City") , a Charter municipal corporation of the State of California, the COUNTY OF SAN LUIS OBISPO ("County") , a subdivision and one of the counties of the State of California, and Zone 17 of the SAN LUIS OBISPO COUNTY FLOOD -CONTROL AND WATER CONSERVATION DISTRICT ("Zone 17") , a local governmental entity of the State of California. RECITALS WHEREAS, the Salinas Dam and Reservoir were built in 1941 by the United States War Department to supply water to Camp San Luis Obispo and the City of San Luis Obispo; and WHEREAS, the Salinas Dam and Reservoir, related facilities, and certain of the surrounding real property ("Project") , are currently owned by the Army Corps of Engineers ("ALOE") , and are leased to the San Luis Obispo County Flood Control and Water Conservation District ("District") and to the County of San Luis Obispo ("County") , who are responsible for the Project's operation and maintenance; and WHEREAS, in 1941 the City applied for and received Permit No. 5882, dated October 9, 1941, from the State Division of Water Resources, said permit granting to the City the right to store and appropriate 45,000 acre-feet of water per year from the Salinas River at the Salinas Reservoir, and to divert directly 12.4 cubic SLO 1-93 J�J feet per second (cfs) ; subordinate only to an identical senior permit, No. 5881, issued to the War Department (as predecessor in interest to ACOE) , and subject to State Water Resources Control Board Order 78-3 (otherwise known as the "Live Stream Agreement") , and WHEREAS, as currently constructed, the storage capacity of the Project is 23,842 .9 acre-feet; and WHEREAS, City now desires to increase the storage capacity of the Project up to the previously permitted 45, 000 acre-feet by the installation of spillway gates on the Salinas Dam in order to meet current and projected future water supply demands in the City; and WHEREAS, ACOE has been interested in transferring ownership of the Project to a local agency for many years, and ALOE had indicated that any increase in the storage capacity of the Salinas Reservoir must first be preceded by transfer of ownership to a local agency; and WHEREAS, the Salinas Reservoir is one of the major sources of water for the City; and the City has, since 1944 , been using this water beneficially, prudently and with due diligence in increasing amounts to serve municipal purposes; and WHEREAS, the Zone 17 has the authority, pursuant to the provisions of the San Luis Obispo County Flood Control and Water Conservation District Act, Act 7205 of the California Water Code- Uncodified Acts of California, to do all things required of Zone 17 by this Agreement; and SLO 2-93 �P WHEREAS, the City has been paying all costs for the operation and maintenance of the Salinas Dam and water delivery facilities; WHEREAS, the Project includes a major recreational facility which benefits all County residents; and WHEREAS, the County currently operates the recreational facilities and the San Luis Obispo Flood Control and Water Conservation District currently operates the Salinas Dam, the Salinas Reservoir and water delivery facilities at the Project; and WHEREAS, San Luis Obispo County Waterworks District No. 6 ("Waterworks No. 611) has been granted a Permit No. 7253 (Application No. 11745) , from the State Division of Water Resources, said water permit granting to Waterworks No. 6 the right to store and appropriate 200 acre-feet of water per year from the Salinas River at the Salinas Reservoir, and to divert directly 1.5 cubic-feet per second; and WHEREAS, the City and Zone 17 desire, under certain conditions provided for herein, to provide water from Salinas Reservoir to Waterworks No. 6 by means of this Agreement; and WHEREAS, in order to facilitate the transfer of ownership of the Project and thereby obtain expansion of the Salinas Reservoir by the installation of spillway gates on the Salinas Dam, the City Council of the City of San Luis Obispo, on November 16, 1992, approved in concept the transfer of ownership of the Project to the San Luis Obispo County Flood Control and Water Conservation District, provided the City's interest in the Salinas Reservoir as the primary water supply for the City is adequately protected; SLO 3-93 NOW, THEREFORE, in consideration of their mutual covenants, and in furtherance of the above recitals, the Parties hereto agree as follows: 1. Effect of Avreement. Except for those provisions relating to cooperation between City and Zone 17 to effect a transfer of the Project, this Agreement and all rights and duties of the Parties hereunder are subject to the express condition precedent that the Project is conveyed to Zone 17. 2. Proiect Description. The Project consists of the Salinas Dam in the northwest quarter of Section 8, T 30 S, R 14 E, M.D.B. & M. , Salinas Reservoir, certain lands adjacent thereto, recreational facilities, and the pipelines, tunnel, pumping plants and other facilities appurtenant thereto, as more fully set forth in the certain lease (Lease No. DACW09-73-56) between the U.S. Army Corps of Engineers and the San Luis Obispo County Flood Control and Water Conservation District, which is incorporated herein by reference. 3. Transfer of Ownership. A. The City and Zone 17 shall fully cooperate and assist in the transfer of ownership of the Project from ALOE to Zone 17, and shall take such steps and attend any necessary meetings to facilitate an expeditious and cost effective transfer. The City shall be the lead agency on the ownership transfer. The City, Zone 17 and County each agree to provide their respective personnel and direct administrative support, at no charge or expense to any other party, to facilitate the transfer of ownership. A representative SLO 4-93 J �O from each Party shall be designated to meet with ACOE on the transfer of ownership. B. The parties agree that all costs associated with the transfer of ownership (other than each entity's own staff and direct administrative support) , including but not limited to all required studies, surveys, legislation, interagency costs, shall be shared between the City and the San Luis Obispo Flood Control and Water Conservation District ("District") in the following percentages. The City agrees to pay 500 of all applicable costs, and the District agrees to pay 50% of all applicable costs up to a maximum cost to the District of $100, 000. 4 Salinas Reservoir Expansion Project. A. Zone 17 and County agree to endorse and cooperate with the City in the furtherance of the City's Salinas Reservoir Expansion Project, as that expansion project is more fully described in the "Draft Environmental Impact Report for the Salinas Reservoir Expansion Project" , which is incorporated herein by reference. Zone 17 and County agree to cooperate with the City as City accomplishes any necessary mitigation measures identified in the City's Salinas Reservoir Expansion Project environmental review or other documentation, and shall provide assistance in obtaining any required County permits, and in complying with County conditions. B. The City shall do or cause to be done all work necessary to accomplish construction of the spillway gates on the Salinas Dam, and other related work for the expansion of the Salinas Reservoir storage capacity, at its sole cost and expense. Before SLO 5-93 S-9 the City shall undertake the aforesaid construction and works, the City shall submit the plans and specifications for said construction and works to the County Engineer of the County and shall consult with the County Engineer regarding said plans and specifications. If the County Engineer objects to any part of the plans or specifications, the County Engineer shall notify, in writing, the City within 30 days of receipt. If , the City agrees with any of the County Engineer's objections, the said plans and specifications shall be changed to eliminate or correct said objections. If the City disagrees with any of the said objections of the County Engineer, the City shall so notify, in writing, the County Engineer. As owner of the Salinas Dam, Zone 17 will be responsible for the safety of the structure and is accountable to the State Department of Water Resources Division of Safety of Dams (DSOD) . By this Agreement, the City agrees to assume all responsibility for gaining the approval of DSOD for the Salinas Reservoir Expansion Project. The City also agrees to assume all liability for any damage, cost or injury to any entity, agency or individual that may be caused in any way by the Salinas Dam modifications constructed by the City. This liability includes, but is not limited to, structural failure of facilities constructed by the City, inundation by increased storage, inundation by increased discharge in the event of Salinas Dam failure, and claims of interruption of flow in the Salinas River. C. The City agrees that existing County recreation facilities SLO 6-93 �•Al inundated as a result of the expansion of the Salinas Reservoir storage capacity shall be replaced and/or relocated at City's sole cost and expense as shown on the conceptual Recreation Facilities Relocation Plan (Exhibit C) . Included in the City's replacement obligations under this part shall be the one-for-one replacement of the well and potable water system and the sewage collection and treatment system which now serve the said existing County recreation facilities, with facilities equivalent to those in existence on the date of execution of this Agreement. 5. Rater Rights. A. Zone 17 and the County acknowledge the City's rights as set forth in said Permit No. 5882 (as modified by the "Live Stream" Agreement) and agree that the County or Zone 17 shall not seek to modify the area of beneficial use for water under appropriation issued pursuant to Application No. 10211 without first obtaining the City's agreement to such modification; except that Zone 17 and the City agree that they will cooperate in providing water from Salinas Reservoir to Waterworks No. 6 as provided for by Paragraph 8 of this Agreement, including obtaining a modification to said area of beneficial use if necessary to provide water to Waterworks No. 6. B. Upon transfer of ownership of the Project to Zone 17, Zone 17 will continuously operate and maintain the Salinas Dam and the Salinas Reservoir in a manner that will achieve the purpose of appropriating water under Permit No. 5882 for the benefit of the City. All matters related to the diversion, storage and use of water appropriated from the Salinas River shall be carried out by SLO 7-93 l Zone 17 pursuant to Permit No. 5882 including but not limited to the quantity of water to be diverted to and from storage in the Salinas Reservoir. Zone 17 shall exercise good faith in carrying out the provisions of Permit No. 5882. Neither Zone 17 nor County shall do any . act which will reduce or impair the City's rights under Permit No. 5882. County and Zone 17 agree that, as among the parties to this Agreement, the water rights and privileges of the City existing prior to the execution of this agreement, including but not limited to Permit 5882, License No. DA-04-353-eng-1943, and the area for beneficial use for water under appropriation issued pursuant to application number 10211, shall not be changed or impaired by this Agreement except as otherwise expressly provided herein. C. No provision of this Agreement shall be considered to be in derogation of any existing water right(s) or claim(s) to water right(s) by or any agreements concerning water rights of any party hereto, including but not limited to overlying, prescriptive, appropriative, riparian, or pueblo rights, nor shall it be construed to result in any relinquishment or adjustment of any such water rights or claims thereto; and, in particular, no provision of this Agreement shall be considered to diminish, reduce or affect, in any way, any party's rights pursuant to California Water Code Section 1005.1 and/or Section 1005.2 6. Water Transmission Facilities. A. Zone 17 shall be responsible for operation and maintenance of the water transmission facilities which supply water to the City from the Salinas Reservoir and shall deliver Salinas Reservoir SLO 8-93 S'102 applicable state and federal health and safety laws and regulations in the use of the reservoir as a domestic water supply for the residents of the City and Waterworks No.6 .(as Waterworks No. 6 rights are provided. for by Paragraph S of this Agreement) . It is anticipated that Zone 17 will enter into an agreement with the County for the said operation and maintenance of recreational facilities by the County with the terms and conditions of such agreement to be in substantially the form and effect as the attached Exhibit B. B. The City shall have no responsibility for any costs associated with the operation, maintenance, or capital costs of any recreational facilities at the Project, except as provided in Paragraph 4C of this Agreement.. C. The City, Zone 17 and County shall work together during the design and construction phase of the Salinas Reservoir Expansion Project to minimize the impacts to the public's recreational opportunities at the Project. Construction and relocation of recreation facilities will likely require restricted access to areas around the Salinas Reservoir during certain periods. The development. of the plans and specifications will attempt to minimize the length of restricted access by phasing construction activities in order to maintain access, even though, at times access will, of necessity, be restricted. 8. Waterworks No. 6. A. City, Zone 17 and County agree that following the construction of the Salinas Reservoir Expansion Project, Waterworks No. 6 shall have the right to receive, every year, 100 acre-feet of SLO 10-93 water, insofar as such is available, to the City at such times and at such rates of flow within the capacity of the delivery facilities as the City shall from time to time specify. Zone 17 shall continue to be responsible for meeting the requirements of the Live Stream Agreement (as required by amendments to Permit #5881 and 5882) and the physical operation of the valves on the Salinas Dam which control downstream releases. Zone 17 shall also be responsible for monitoring the establishment of the live stream at the appropriate observation points prior to adding water to storage at the Salinas Reservoir. B. The specific terms and conditions concerning operation and maintenance of the Salinas Dam, the Salinas Reservoir and the water transmission facilities will be addressed in a separate agreement between the City and Zone 17 substantially similar in form and effect as the attached Exhibit A and as said Exhibit A may from time to time be amended by mutual agreement of the parties thereto. 7. Recreation Facilities. A. The City, Zone 17, and County acknowledge that the County of San Luis Obispo currently maintains and operates recreational facilities, open to the public, at the Project which are compatible with the rights of the City under said Permit No. 5882. The City, Zone 17 and County intend . that the County shall continue to maintain and operate the said recreational facilities and, from time to time, modify and/or expand said facilities, provided, that the said recreational facilities and operations shall continue to be- only those which are compatible with the rights of the City under said Permit No. 5882 and said Permit No. 7253 and with SLO 9-93 S-/3 water from the said Salinas Reservoir; provided that, the said right of Waterworks No. 6 is conditioned upon Waterworks No. 6 giving written notice to City, within ten years from completion of the said Salinas Reservoir Expansion Project, that Waterworks No. 6 elects to exercise its right to thereafter receive 100 acre-feet per year from the Salinas Reservoir; and, further provided that, in the event that (i) the San Luis Obispo County Flood Control and Water Conservation District (District) or other agency constructs the "Nacimiento Project" (a project to deliver Lake Nacimiento water, to which the District has certain rights, to public agencies within the County, and (ii) Waterworks No. 6 takes delivery of water from the said Nacimiento Project as a substantial and continuous source of water to Waterworks No. 6, then, at such time, the provisions of this Paragraph No. 8 shall be of no further force or effect and Waterworks No. 6 shall be entitled to no rights by reason of this Agreement or under any other provisions of this Agreement. B. In the event that Waterworks No. 6 shall exercise the option granted by the parties in this part, Waterworks No. 6 shall Pay: (i) to the City and the District, a portion of the costs and expenses incurred by the City and the District in accomplishing the transfer of ownership of the Project from the ACOE to Zone 17, the said Waterworks No. 6 portion being the result of dividing 100 by 5450; and (ii) to the City, a portion of the costs and expenses incurred by the City for the construction of the Salinas Reservoir SLO 11-93 Expansion Project including but not limited to: installation of spillway gates, relocation of recreation facilities, and environmental mitigation measures, the said Waterworks No. 6 portion being the result of dividing 100 by 1650; and (iii) to Zone 17, the actual annual operation and maintenance costs and expenses of making Salinas Reservoir water available to Waterworks No. 6, the said Waterworks No. 6 costs being 100/5450ths of the actual annual operation and maintenance costs and expenses of making Salinas Reservoir water available to the City after first subtracting from said actual annual costs and expenses those costs and expenses attributable to supplying water to the City downstream from the Waterworks No. 6 Turnout. C. Waterworks No. 6 is a third-party beneficiary of this Agreement. D. The said 100 acre-feet of water from the Salinas Reservoir shall be delivered by Zone 17 to Waterworks No. 6 from the Waterworks No. 6 Turnout which shall be located as follows: (i) At the existing blow-off valve in the vicinity of the town of Santa Margarita (the said valve being located at or near pipeline station 424+36) ; or (ii) At a turnout paid for by Waterworks No. 6 and constructed by Zone 17 in the vicinity of the town of Santa Margarita. E. The parties further agree, concerning this paragraph No. 8, that the provisions of this paragraph and the obligations of City and Zone 17 described herein and the rights of Waterworks No. 6 described in this paragraph shall not accrue nor be effective SLO 12-93 unless and until the City installs spillway gates on the Salinas Dam such that the storage capacity of the Salinas Reservoir is increased to an amount greater than 23,900 acre-feet and that, by including this paragraph in this Agreement, the City has not, and does not, become obligated to Waterworks No. 6 to install the said spillway gates or in any other way increase the storage capacity of the Salinas Reservoir. 9 . Water Ouality. The City, Zone 17 and County acknowledge and agree that the City is ultimately responsible for the quality, quantity and cost of water delivered by City to its residents, and therefore: A. The City shall have full authority to require Zone 17 to restrict or prohibit any activity at the Salinas Reservoir which is determined by the County Health Officer, the State Department of Health Services, the State Water Quality Control Board, Regional Water Quality Control Board or other appropriate state or federal regulatory agencies to adversely impact the City's ability to adequately treat or deliver water or increases the City's cost to do so, as required by municipal, state or federal laws or regulations. B. Prior to any change by the County or Zone 17 of their respective operations of facilities at the Project, which change could forseeably have an adverse effect on the quality or quantity of the water that the City delivers to its residents or increases the City's cost to treat or deliver said water, the party desiring to make said change shall first notify the City of the party's intent to make the change at least 60 days in advance of the date SLO 13-93 s-17 that the change is intended to be accomplished. 10. Notices. Any notice to be given or other document to be delivered by any party to -the other hereunder shall be in writing and delivered to the party by personal delivery or by depositing the same in the United States Mail with first class postage thereon, fully prepaid, and addressed to the party for whom intended, as follows: City: Zone 17: City Administrative Officer County Engineer City of San Luis Obispo County Government Center 990 Palm Street, P.O. Box 8100 San Luis Obispo, CA 93408 San Luis Obispo, CA 93403-8100 County: General Services Director County Government Center San Luis Obispo, CA 93408 Any party hereto may from time to time by written notice to the other parties designate a different address which shall be substituted for the one above specified. Notices shall be effective when received. Any notice or other document sent by certified mail, as required herein, shall be deemed received seventy-two (72) hours after the mailing thereof. 11. Applicable Law. This Agreement shall be construed in accordance with the laws of the State of California. 12. Time of the Essence. Time is of the essence in the performance of the respective obligations of the Parties under this Agreement. 13. Indemnification. A. Nothing in the provisions of this Agreement is intended to SLO 14-93 create duties or obligations to or rights in third parties not parties to this contract (other than Waterworks No. 6) or affect the legal liability of any party to this contract by imposing any standard of care different from the standard of care imposed by law. B. It is understood and agreed that neither City, •nor any officer or employee thereof is responsible for any damage or liability occurring by reason of anything done or omitted to be done by the County or Zone 17 under or in connection with any work, authority or jurisdiction delegated to the County or Zone 17 under this Agreement. It is also understood and agreed that pursuant to Government Code 895.4, County and Zone 17 shall defend, indemnify and save harmless the City, all officers and employees from all claims, suits or actions of every name, kind and description brought for or on account of injuries to or death of any person or damage to property resulting from anything done or omitted to be done by the County or Zone 17 under or in connection with any work, authority or jurisdiction delegated to the County or Zone 17 under this Agreement except as otherwise provided by Statute. C. It is understood and agreed that neither County, Zone 17, nor any officer or employee thereof is responsible for any damage or liability occurring by reason of anything done or omitted to be done by the City under or in connection with any work, authority or jurisdiction delegated to the City under this Agreement. It is also understood and agreed that pursuant to Government Code 895.4, City shall defend, indemnify and save harmless the County and Zone 17, all officers and employees from all claims, suits or actions of SLO 15-93 Si9 every name, kind and description brought for or on account of injuries to or death of any person or damage to property resulting from anything done or omitted to be done by the City under or in connection with any work, authority or jurisdiction delegated to the City under this Agreement except as otherwise provided by Statute. 14. Dispute Resolution. The parties will attempt in good faith to resolve any controversy or claim arising out of or relating to this Agreement promptly by negotiations between the appropriate project managers of the parties. If a controversy or claim should arise, the appropriate project managers will meet at least once and will attempt to resolve the matter. Either project manager may request the other to meet within fourteen days at a mutually agreed time and place. If the matter has not been resolved within twenty days of their first meeting, the project managers shall refer the matter to their respective chief administrative officers. Thereupon, the project managers shall promptly prepare and exchange memoranda stating the issues in dispute and their positions, su=arizing the negotiations which have taken place and attaching relevant documents. The chief administrative officers will meet for negotiations within fourteen days of the end of the twenty-day period referred to above, at a mutually agreed time and place. Provisions of this paragraph shall not deprive any party of any other remedy provided by law. 15. waiver. No waiver or any breach of any of the terms, covenants, agreements, restrictions or conditions of this Agreement shall be construed to be a waiver of any succeeding breach of the SLO 16-93 Seo same or other terms, covenants, agreements, restrictions, and conditions hereof. 16. Modification of Agreement. No change in or modification, termination or discharge of this Agreement in any form whatsoever shall be valid or enforceable unless it is in writing and signed by the party to be charged therewith or its duly authorized representative; provided, however, that any change in or modification, termination, or discharge of this Agreement expressly provided in this Agreement shall be effective as so provided. 17. Assignment or Transfer. Neither party shall assign or transfer this Agreement without the prior written consent of the other party first had and received. City reserves the right to refuse any proposed transfer or assignment if, in City's sole discretion, such transfer or assignment could adversely impact the City's water supply. Zone 17 reserves the right to refuse any proposed transfer or assignment if in Zone 17's sole discretion, such transfer or assignment could adversely impact Zone 171's operations at the Project. 18. Good Faith. City, Zone 17 and County shall each act in good faith in performing their respective obligations as set forth in this Agreement. 19. Remedies not Exclusive. The use by any party of any remedy specified herein for the enforcement of this Agreement is not exclusive and shall not deprive the party using such remedy of, or limit the application of, any other remedy provided by law. SLO 17-93 20. Headings. The titles to the sections of this Agreement and the Table of Contents are not a part of this Agreement and shall have no effect upon the construction or interpretation of any part of this Agreement. The headings used herein are inserted only as a matter of convenience and for reference, and in no way define, limit or describe the scope or intent of any section hereto. 21. Review by Counsel. Each party is represented by legal counsel. Each party and its legal counsel have reviewed this Agreement. Any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement or any amendments or attachments hereto. 22. Entire Agreement. This Agreement, together with its exhibits incorporated herein by reference, constitutes the entire agreement between the Parties and there are no negotiations, conditions, representations or agreements regarding the matters covered by this Agreement which are not expressed herein. 23. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original. IN WITNESS WHEREOF, the Parties have executed this agreement as of the day and year first above written. CITY OF SAN LUIS OBISPO By: Mayor Allen Settle. ATTEST: SLO 18-93 City Clerk Diane R. Gladwell S� APPROVED AS TO FORM: A o ey SAN LUIS OBISPO COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT . By: Chairman Board of Supervisors of District ATTEST: County Clerk and ex-officio Clerk of said Board APPROVED AS TO FORM: County Counsel SLO 19-93 S�3 EXHIBIT A. SALINAS RESERVOIR OPERATION AND MAINTENANCE AGREEMENT THIS AGREEMENT is made this day of , 19951, by and between the CITY OF SAN LUIS OBISPO ("City") , a Charter municipal corporation of the State of California, and Zone 17 of the SAN LUIS OBISPO COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT ("Zone 17") , a local governmental entity of the State of California. RECITALS WHEREAS, the Salinas Dam and Reservoir were built in 1941 by the War Department to supply water to Camp San Luis Obispo and the City of San Luis Obispo; and WHEREAS, the City of San Luis Obispo applied for and received permit No. 5882, dated October 9, 1941 from the State Division of Water Resources for the diversion and storage of water from the Salinas River; and WHEREAS, the City of San Luis Obispo has appropriated water from the Salinas River and dedicated this water to a public use for the benefit of its inhabitants; and WHEREAS, the Salinas Reservoir is one of the major sources of water for the City of San Luis Obispo; and WHEREAS, the Zone 17 currently provides the operation and maintenance of the Salinas Dam and the Salinas Reservoir and related facilities for water delivery to the City; and WHEREAS, the City currently pays all expenses related to Zone 17's operation and maintenance of the water delivery system; S-.2� Salinas Operations Agreement Page 2 NOW, THEREFORE, in consideration of their mutual covenants, and in furtherance of the above recitals, the Parties hereto agree as follows: 1. Effect of Agreement. This agreement and all rights and duties of the Parties hereunder are subject to the express condition precedent that the Salinas Dam, the Salinas Reservoir, certain surrounding real property and Related Facilities ("Project") is conveyed to Zone 1.7 by the United States Army Corps of Engineers. This Agreement shall automatically terminate in the event the transfer of ownership of the project fails for any reason whatsoever, unless this Agreement is amended by mutual agreement of the Parties. 2. Operations. Zone 17, as owner of the Project, now, and during the term of this Agreement, shall continue to operate, maintain, and repair the following Project facilities which serve the City's water delivery system: A. Salinas Dam B. Salinas Reservoir (Lake Santa Margarita) C. Water Transmission Facilities which supply water to the City (including the booster station and tunnel) . Zone 17 shall also be responsible for the original "Army" pipeline on the westerly side of the mountains. D. Pumping Plant at Dam E. Cuesta Tunnel �o�J Salinas operations Agreement Page 3 F. 57, 190 lineal feet (more or less) of 18-inch diameter reinforced concrete pipe from Salinas Dam to Cuesta Tunnel. G. 5,800 lineal feet (more or less) of 18-inch diameter steel pipeline from Cuesta Tunnel to City turnout. H. 3,120 lineal feet (more or less) of 12-inch diameter steel pipeline from City turnout to terminal structure near Chorro Reservoir I. Easements and right-of-ways for pipelines Zone 17 shall not be responsible for City facilities, including but not limited to: A. City facilities starting at, and including, the valve at the City turnout on the pipeline between the turnout and the City's hydroelectric facility (pipeline station 751+48) and City facilities downstream from said valve. B. City equipment at the South portal of the tunnel that is used in monitoring the operation of their hydroelectric facility. 3. Live Stream Releases. Zone 17 shall continue to be . responsible for meeting the requirements of the "live stream concept" (as required by amendments to' Permit #5881 and 5882) and all other established water rights and rulings of the State water Resources Control Board. Zone 17 will be responsible for the Salinas Operations Agreement Page 4 physical operation of the valves which control downstream releases and for the monitoring the establishment of the live stream at the appropriate observation points prior to adding water to storage at the reservoir. 4. Water Delivery. Zone 17 shall deliver Salinas Reservoir water at the time and rate specified by the City, subject to the storage limitations imposed by the Salinas Reservoir. At all times, Zone 17 shall operate and maintain the Salinas Reservoir in a manner which does not interfere with the enjoyment of the City's appropriative rights to water from the Salinas River and the City's dedication of this water supply to a public use. Zone 17 shall give the City 30 days written notice for planned maintenance work which will limit or prevent water deliveries. In the event of an emergency which prevents water deliveries, Zone 17 shall immediately notify .the City of the nature and extent of the problem and Zone 17 shall take such action as may be necessary to reestablish transmission capability as quickly as possible. Zone 17 shall regulate the flow of Salinas Reservoir water to the City as requested by City within the operational limits of Salinas Reservoir delivery system. The line of communication for requesting flow changes will be directly between City Water Treatment Plant staff and Zone 17 Salinas Reservoir staff. The City shall give 24-hour advance notice 'of flow change requests. S. water duality. The City and Zone 17 acknowledge and agree that the City is ultimately responsible for the quality, so2r Salinas Operations Agreement Page 5 quantity and cost of water delivered by City to its residents, and therefore: A. The City shall have full authority to require Zone 17 to restrict or prohibit any activity at the Salinas Reservoir which is determined by the County Health Officer, the State Department of Health Services, the State Water Quality Control' Board, Regional Water Quality Control Board or other appropriate state or federal regulatory agencies to adversely impact the City's ability to adequately treat or deliver water or increases the City's cost to do so, as required by municipal, state or federal laws or regulations. B. Zone 17 shall not change its manner of operation of the Salinas Dam or the Salinas Reservoir in a manner that will adversely affect the quality or quantity of the water that Zone 17 delivers to City or increase the City's cost to treat or deliver said water without the consent of the City; provided that, Zone 17 shall have the authority and obligation to make such changes to its operation of the Salinas Dam and/or Salinas Reservoir as are required by law or regulation or for safety of the operation of the Salinas Dam or Salinas Reservoir. Zone 17 shall notify the City at least 60 days in advance of the date that the change is intended to be accomplished. 6. Costs of operation. The City will pay all costs associated with Zone 17's operation of the Salinas Dam and Salinas Reservoir and, also, of the transmission of water from the Salinas Reservoir s'aZO Salinas Operations Agreement Page 6 to the City. These costs may include an agreed-upon .reserve. The City will not be responsible for any costs of any recreation operations of the County of San Luis Obispo at the Project or for any other Zone 17 or County of San Luis Obispo operations at the Project site that are not directly related to the City water supply. A payment schedule will be established by Zone 17 whereby the City will make quarterly .payments of the said costs of operation based upon an annual Zone 17 budget. At the end of the fiscal year, the City shall receive from Zone 17 a refund or a bill, depending on how actual costs of operation compare to the year's Zone 17 budget. Zone 17 shall provide a statement for any significant variance from budget. 7. Zone 17 Budgets. Zone 17 shall meet with the City on or before January 31" of each year to discuss Zone 17's budget for the coming fiscal year for the Salinas Dam/Reservoir. Either the City or Zone 17 may propose capital improvements or changes in operations for the coming year(s) . The City and Zone 17 must reach mutual consensus on capital improvements or changes in operations that will result in an increase in costs that will ultimately be paid by the City, except that the City and Zone 17 shall approve any capital improvement or change in operation mandated by law or regulation. Zone 17 shall also provide five year budget projections for both capital and operating programs to allow for long range planning for the City. .s�9 Salinas Operations Agreement Page 7 a. statements/Audits, Zone 17 shall provide an unaudited year-end financial statement prepared in accordance with generally .accepted accounting principles and/or in accordance with promulgations of the Government Accounting Standards Board, whichever may apply, except that notes to the financial statements shall not be required unless an audit is performed. Audits of the statements may be required by the City at any time with the City to pay for the audit. City shall have the right to reasonably inspect the books .and records of Zone 17 for Zone 17's operations at the Salinas Dam/Reservoir.. 9. Data. Zone 17 shall continue to supply to the City, monthly reservoir data which includes, but is not limited to, rainfall, evaporation, storage, downstream releases, etc. 10. Limnology. Zone 17 shall continue limnology sampling of the Salinas Reservoir. The sampling schedule shall be established by the City. 11. Water Treatment. The City shall approve all treatment of water at the Salinas Reservoir required to maintain water quality. Zone 17 shall do all of the required water treatment at the Salinas Reservoir. The manner and extent of water treatment shall be that specified by the City unless Zone 17 determines that the specified water treatment is in violation of health and safety/fish and game/CEQA or other legal requirements. . 12. Consultation. Zone 17 will consult with the City on any and all substantial matters concerning the operation and 5-30 Salinas operations Agreement Page 8 maintenance of the Salinas Reservoir and Salinas Dam and attempt to reach agreement with the City on any issue raised. In matters where Zone 17 concludes that a request from the City is contrary to the *law or water rights, Zone 17 would have the right to refuse the City's request on this basis. 13. Notices. Any notice to be given or other document to be delivered by any party to the other hereunder shall be in writing and delivered to the party by personal delivery or by depositing the same in the United States Mail with first class postage thereon, fully prepaid, and addressed to the party for whom intended, as follows: City: Zone 17: . City Administrative Officer County Engineer City of San Luis Obispo County Government Center 990 Palm Street, P.O. Box 8100 San Luis Obispo, CA 93408 San Luis Obispo, CA 93403-8100 Any party hereto may from time to time by written notice to the other parties designate a different address which shall be substituted for the one above specified. Notices shall be effective when received. Any notice or other document sent by certified mail, as required herein, shall be deemed received seventy-two (72) hours after the mailing thereof. 14. Applicable Law. This Agreement shall be construed in accordance with the laws of the State of California. Salinas Operations Agreement Page 9 15. Time of the Essence. Time is of the essence in the performance of the respective obligations of the Parties under this Agreement. 16. Indemnification. A. Nothing in the provisions of this Agreement is intended to create duties or obligations to or rights in third parties not parties to this contract or affect the legal liability of any party to this contract by imposing any standard of care different from the standard of care imposed by law. B. It is understood and agreed that neither City, nor any officer or employee thereof is responsible for any damage or liability occurring by reason of anything done or omitted to be done by the County or Zone 17 under or in connection with any work, authority or jurisdiction delegated to the County or Zone 17 under this Agreement. It is also understood and agreed that pursuant to Government Code 895.4, County and Zone 17 shall defend, indemnify and save harmless the City, all officers and employees from all claims, suits or actions of every name, kind and description brought for or on account of injuries to or death of any person or damage to property resulting from anything done or omitted to be done by the County or Zone 17 under or in connection with any work, authority or jurisdiction delegated to the County or Zone 17 under this Agreement except as otherwise provided by Statute. C. It is understood and agreed that neither County, Zone 17, nor any officer or employee thereof is responsible for any damage , C42 Salinas operations Agreement Page 10 or liability occurring by reason of anything done or omitted to be . done by the City under or in connection with any work, authority or jurisdiction delegated to the City under this Agreement. It is also understood and agreed that pursuant to Government Code 895.4, City shall defend, indemnify and save harmless the County and Zone 17, all officers and employees from all claims, suits or actions of every name,. kind and description brought for or on account of injuries to or death of any person or damage to property resulting from anything done or omitted to be done by the City under or in connection with any work, authority or jurisdiction delegated to the City under this Agreement except as otherwise provided by Statute. 17. Dispute Resolution. The parties will attempt in good faith to resolve any controversy or claim arising out of or relating to this .Agreement promptly by negotiations between the appropriate project managers of the parties. If a controversy or claim should arise, the appropriate project managers will meet at least once and will •attempt to resolve the matter. Either -project manager may request the other to meet within fourteen days at a mutually agreed time and place. If the matter has not been resolved within twenty days of their first meeting, the project managers shall refer the matter to their respective chief administrative officers. Thereupon, the project managers shall promptly prepare and exchange memoranda stating the issues in dispute and their positions, summarizing the negotiations which : .�33 Salinas Operations Agreement Page 11 have taken place and attaching relevant documents. The chief administrative officers will meet for negotiations within fourteen days of the end of the twenty-day period referred to above, at a mutually agreed time and place. Provisions of this paragraph shall not deprive any party of any other remedy provided by law. 18. Waiver. No waiver or any breach of any of the terms, covenants, agreements, restrictions or conditions of this Agreement shall be construed to be a waiver of any succeeding breach of the same or other terms, covenants, agreements, restrictions, and conditions hereof. 19. Modification of Agreement. No change in or modification, termination or discharge of this Agreement in any form whatsoever shall be valid or enforceable unless it is in writing and signed by the party to be charged therewith or its duly authorized representative; provided, however, that any change in or modification, termination, or discharge of this Agreement expressly provided in this Agreement shall be effective as so provided. 20. Assignment or Transfer. Neither party shall assign or transfer this Agreement without the prior written consent of the other party first had and received. City reserves the right to refuse any proposed transfer or assignment if, in City's sole discretion, such transfer or assignment could adversely impact the City"s water supply. Zone 17 reserves the right to refuse any proposed transfer or assignment if in Zone 17's sole discretion, such transfer or assignment could adversely impact Zone 17's ��T Salinas operations Agreement Page 12 operations at the Project. 21. Good Faith. City, Zone 17 and County shall each act in good faith in performing their respective obligations as set forth in this Agreement. 22. Remedies not Exclusive. The use by any party of any remedy specified herein for the enforcement of this Agreement is not exclusive and shall not deprive the party using such remedy of, or limit the application of, any other remedy provided by law. 23. Readings. The titles to the sections of this Agreement and the Table of Contents are not a part of this Agreement and shall have no effect upon the construction or interpretation of any part of this Agreement. The headings used herein are inserted only as a matter of convenience and for reference, and in no way define, . limit or describe the scope or intent of any section hereto. 24. Review by Counsel. Each party is represented by legal counsel. Each party and its legal counsel have reviewed this Agreement. Any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement or any amendments or attachments hereto. 25. Entire Agreement. This Agreement, together with its exhibits incorporated herein by reference, constitutes the entire agreement between the Parties and there are no negotiations, conditions, representations or agreements regarding the matters covered by this Agreement which are not expressed herein. Salinas Operations Agreement Page 13 26. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original. IN WITNESS WHEREOF, the Parties have executed this agreement as of the day and year first above written. CITY OF SAN LUIS OBISPO By: Mayor Allen Settle ATTEST: City Clerk AP ROVED AS FORM: At Orly SAN LUIS OBISPO COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT By: Chairman Board of Supervisors of District ATTEST: County Clerk and ex-officio Clerk of said Board APPROVED AS TO FORM: County Counsel 36 EXHIBIT B DRAFT JOINT POWERS AGREEMENT BETWEEN ZONE 17 OF THE SAN LUIS OBISPO COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT AND THE COUNTY OF SAN LUIS OBISPO FOR OPERATION.OF THE SANTA MARGARITA LAKE REGIONAL PARK AND NATURAL AREA THIS JOINT POWERS AGREEMENT entered into this day of , 199_, by and between Zone 17 of the San Luis Obispo County Flood Control and Water Conservation District, hereinafter referred to as Zone 17, and the County of San Luis Obispo, State of California, hereinafter referred to as County: WITNESSETH: WHEREAS, Zone 17 will acquire from the Federal Government certain lands which include various facilities, including the Salinas Dam and Reservoir, which entire project has been named the Salinas River Water Supply Project, hereinafter referred to as Project; and WHEREAS, a portion of this Project is being operated as a park known as the Santa Margarita Lake Regional Park and Natural Area, hereinafter referred to as Park; and WHEREAS, County has operated and maintained Park for many years under lease from the Federal Government and wishes to continue to operate and maintain Park under Zone 17 ownership; and WHEREAS, Zone 17 within its powers may operate such a recreational facility, but District does not presently have the trained personnel, administrative know-how, or administrative facilities to operate such a Park; and WHEREAS, County, within its Department of General Services, has the trained personnel, or the means to secure same, the administrative know-how, and the administrative facilities to operate such a Park; and WHEREAS, Zone 17 and County desire that County should operate the Park; and WHEREAS, the most feasible method of providing for such operation by the County is by means of a joint powers agreement entered into pursuant to Government Code Sections 6500, et seq. NOW, THEREFORE, in consideration of the mutual covenants, conditions, promises, and agreements herein set forth, Zone 17 and County, the parties hereto, hereby mutually covenant and agree, as follows: 1. County shall operate and administer the Park, and in connection with such operation and administration shall furnish all personnel necessary therefor. S37 2. Funds used by County for operation and maintenance purposes shall be from a County budget. All fees collected by County for use of the Park shall be credited to such budget. Any deficit in such budget shall be met by the County. Any surplus in such budget shall remain the assets of County. 3. The parties recognize that the fee title to all real property within the Park shall remain in the name of Zone 17. The parties also recognize that ownership of all facilities within the Park, and of certain equipment used in the maintenance and operation thereof, is, and shall remain, in the County. 4. The parties recognize that the highest degree of cooperation must be achieved between staffs of both parties so that the Project and the Park, as a part of the Project, may be operated in' a manner both efficient and beneficial to the public who will use the Park, to the agencies who will receive the water from the Project, and to the taxpayers of Zone 17. Both parties pledge their best efforts to accomplish this end. They also recognize that many details must be worked out in the course of operation of the Project and the Park under this agreement which cannot be spelled out herein. Both parties pledge themselves that their respective staffs will cooperate fully in doing this. 5. Both parties recognize that this agreement is subject to all agreements entered into by.Zone 17 with the City of San Luis Obispo, the State of California and the United States and agree that nothing in this agreement shall be construed to permit County to in any way hinder Zone 17 in its performance of such agreements. 6. In order that rules and regulation, laws and ordinances may be properly enforced by personnel of the Department of General Services within the Park, the parties do hereby declare that the Santa Margarita Lake Regional Park and Natural Area is, and shall be, a county park for all purposes of Section 5380 of Public Resources Code of the State of California. 7. This agreement shall continue in effect until thirty (30) days after a notice of termination has been delivered by either party to the other. This agreement may be amended from time to time by mutual action taken in the same manner, and subject to the same statutory provisions, as the agreement was adopted. 8. The County shall defend, indemnify and save harmless the District, its officers, agents and employees from any and all claims, demands, damages, costs, expenses, or liability occasioned by the performance or attempted performance of the provisions hereof, or in any way arising out of this Agreement, including, but not limited to, inverse condemnation, equitable relief, or any wrongful act or any negligent act or omission to act on the part 5 38 of the County, or of agents, employees or independent contractors directly responsible to the County; providing further that the foregoing shall apply to all wrongful acts, including any passively negligent acts or omissions to act, committed jointly or- concurrently by the County, the County's agents, employees, or independent contractors and the District, its agents, employees, or independent contractors, excepting nothing contained in the foregoing indemnity provisions shall be construed to require the County to indemnify the District against any responsibility or liability in contravention of Section 2782 of the Civil Code. ,sag IN WITNESS WHEREOF, the parties hereto have executed this Joint Powers Agreement on the day and year first above stated. SAN LUIS OBISPO COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT By: Chairperson of the Board of Supervisors, San Luis Obispo County Flood Control and Water Conservation District ATTEST: County Clerk and ex-officio clerk•of the Board of Supervisors of the San Luis Obispo County Flood Control and Water Conservation District COUNTY OF SAN LUIS OBISPO By: Chairperson of the Board of Supervisors of the County of San Luis Obispo, State of California ATTEST: County Clerk and ex-officio cleric of the Board of Supervisors of the County of San Luis Obispo, State of California Approved as to Form: District Attorney By: m\catrinalglp�pa.agr _ •r��C�RPh �7J�/i� .� _-_✓r y �J►rfa: s l V� ��; IN IN Tri r /��' ���i ���11�� �� - ate'' i�.l' 1 SI� .�� • �� ��� ����� ���������'�� mg �1 : BEM l� �z N Jar! W LU ,.. 2 UPJ Y C2 6 ��-°°r� N �r O . p W Qj %/�J. 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IL \\ .�'Ilk , �/ • `��\ i ';+i K;t1���i?��/ /!fir fes%r4r�s; i !r White Oak Flat I" = 200' 0" PmiW No. Salinas Reservoir 91681318 I Expansion Pro•ect Figure 2-11. WHITE OAK CONCEPT PLAN I 1993 Woodward-Clyde Consultants baueKD,igmwamaanea„e,. ,,,, C-4 �j��