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HomeMy WebLinkAbout01/18/2000, C7 - FUNDING FOR U.S. ARMY CORPS OF ENGINEERS REVIEW ASSOCIATED WITH THE SALINAS RESERVOIR EXPANSION PROJECTcouncil M=um°� Jart- 19, 2000 j' ac cn bA Report 'C7 C I T Y O F S A N L U I S O B I S P O FROM: John Moss, Utilities Direct Prepared By: Gary W. He &9r Water Division Manager CwtJ. SUBJECT: FUNDING FOR U. S. ARMY CORPS OF ENGINEERS REVIEW ASSOCIATED WITH THE SALINAS RESERVOIR EXPANSION PROJECT CAO RECOMAMNDATION 1. Authorize the Utilities Director to Advance Funding to the U.S. Army Corps of Engineers for Review Associated with the Salinas Reservoir Expansion Project to a Maximum Amount of $80,000. 2. Appropriate $80,000 from the unreserved Water Fund balance to fund this cost. DISCUSSION The City of San Luis Obispo has been pursuing the Salinas Reservoir Expansion Project for many years to increase available water supplies to meet existing and future community water needs. The City Council certified the final environmental impact report for the project on June 2, 1998. On July 20, 1999, the City Council approved a contract with URS Greiner Woodward Clyde Consultants for additional studies and analysis relative to the Salinas Reservoir Expansion Project. There are several areas of work under the approved contract which must be addressed prior to initiating final design and construction. The four main issues are 1.) transfer of ownership of the dam and surrounding property, 2.) resolution of the protest to the City's water rights permit, 3.) development of detailed mitigation plans, and 4.) additional structural analysis required for State Division of Dam Safety (DSOD) certification of the dam following ownership transfer. The work associated with structural analysis and ownership transfer will require assistance and review by the U.S. Army Corps of Engineers (Corps). City staff have submitted requests to the Corps for review of seismic design criteria as well as approval to allow core samples to be taken from the dam for strength testing. The Corps have begun some of the review but have requested funding to complete the work In correspondence from the Corps dated November 24, 1999, the estimate for their stag's efforts was $77,000 (Attachment A). City staff have contacted the Corps to discuss various methods for reimbursing the Corps for their expenses. City staff requested whether the Corps could bill the City on a periodic basis for reimbursement for services rendered. The Corps indicated that they could not provide for billing and that the funds need to be received prior to committing significant staff resources. C7 -1 Council Agenda Report — Funding for Corps Review Page 2 The Corps has agreed to providing funding in phases since much of their review work will not be required for some time. City staff proposed providing funds in the amount of $10,000 to begin their review work. Once the funds are expended and additional review work is needed, the Corps will notify the City of additional funds needed and provide the City with an accounting of previous expenditures. The City would then provide an additional $10,000 to the Corps to continue their staff support and services. This funding strategy is necessary to continue moving forward with the studies and analysis relative to the Salinas Reservoir Expansion Project. This funding strategy will also allow project funding to the Corps to occur in phases in concert with the actual project development and approvals, minimizing risk to the City. CONCURRENCES The Finance Director has reviewed the proposed strategy for providing the necessary funds for Corps review work and concurs with the recommended approach. FISCAL IMPACT The U.S. Army Corps of Engineers has estimated that their review work will cost approximately $77,000. Staff would recommend a small contingency of $3,000. Funding is available in the Water Fund Balance to fund the additional $80,000 and retain working capital at minimum policy levels. A. Letter from Corps dated Nov. 24, 1999 C7 -2 DEPARTMENT OF THE ARMY LOS ANGELES DISTRICT. CORPS OF ENGINEERS P.O. SOX 532711 LOS ANGELES. CALIFORNIA 900532325 November 24, 1999 REPLY TO ATTENTION OF City of San Luis Obispo 955 Morro Street San Luis Obispo, California 93401 Dear Mr. Henderson: Attachment A In response to your letter, dated 26 July 1999, the estimated cost of reviewmg environmental related documents and the engineering report for Salinas Dam project for Phase I is $77,000.00. The attached table Summarizes required efforts and associated costs by different disciplines within the Los Angeles District. Real Estate Division efforts and additional coordination and associated costs, not included in this cost estimate, would be required in Phase H. We will proceed with the review process upon receipt of funds and documents being prepared by your consultants . If you have any questions or need additional information, please contact Mr. Mike Vahabzadeh at (213) 452 -3613. Enclosure Sincerely, DEC - 1 C7 -3 � � 2 � � W « 2 � � D $ « Z � « CO) 0 0 Cl © 0 0 0 K R 0 $ 0 ° k k � Q a 2 § # 2 a G � C � CL o § � Q § r E 7 t o e E § ] © � % { M 2 E - CL c / { E o } CL a 2 k .._ (D ° a 0 / . k -- ■ ƒ / < c « - kK E� C ; §� $ •R ■ L ■- tv E < co a �c 0 �§0 == $B a �2 ? .� 7 - 2�, o00 .� { o ■ &� 20 4m © ��§ �� I �e 0 ©°C vk� ©�,�_ ._® _E, . �£s S *R■ a� « �, ■,Zu .�� o LU 0- § -0I -oe �6� 22� o■■ §E c .z -_■ - & §� u& (6 c .s �§ ® <8 2 Mu @a a -� )a■ - £- ■��� a` »■ o§m■, °€ �2� .2, CL ©,00 aIsA _22 e� ego .� '0 e2&& >0 a2; ��5 §■8 0- _■ozm ■aIr w oo■ o_� x =a 0�o o -4_j CL