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02/11/1974MINUTES ADJOURNED MEETING OF THE CITY COUNCIL CITY OF SAN LUIS OBISPO, CALIFORNIA February 11, 1974 - 7:30 P.M. CITY HALL Pledge Roll Call Present: Councilman Brown, Graham, Gurnee and Norris and Mayor Schwartz Absent : None City Staff Present: J. H. Fitzpatrick, City Clerk; R. D. Miller, Admini- strative Officer; A. J. Shaw, Jr., City Attorney; D. Williamson, Assistant Administrative Officer; R. A. Paul, Water Department Director. --------------------------------------------------------------------- 1. Mayor Schwartz announced that the purpose of the meeting was to formally respond to the Januray 21, 1974, request of the County Engineer that the City determine if it is interested in joining with other local agencies in the Nacimiento Water Project. Mayor Schwartz reviewed for the City Council a brief summary of the City's present water supply from Salinas Reservoir, and local sur- face water diversions. He reviewed the present water reserves that the City had to sustain future growth. The resources were apparently sufficient to support the needs of the City projected to the year 1984. He also discussed the future needs of the City for supplemental water to serve the needs of a growing city through to year 2000. He then reviewed the Master Water Plan of the County of San Luis Obispo, which envisioned developing supplemental water supplies from the Nacimiento River and the Coastal Branch Aqueduct of the State Water Project. In reviewing the County Master Plan for water, he listed the needs of the various cities and communities of the county and using a county map, he explained the proposal of the County for development of both the Nacimiento source and the State water source. He also reviewed for the City Council the present contractual arrangements that San Luis Obispo County had with the State and the involvement of Santa Barbara County for mutual development of the Coastal Aqueduct Branch of the California Water Plan. Originally it had been intended that construction of the State's Aqueduct would start in late 1975 and be completed for both counties by 1980. Subsequently, the County Board of Supervisors of Santa Barbara County had asked that the State defer implementation of the water plan for a least two years. Mayor Schwartz stated that the issues before the City Council this evening were (1) to go with the Nacimiento plan, a part of the County Water Plan, with a City allocation of 2,930 acre feet per year as suggested by the County Engineer's Office; (2) go with the Nacimiento Plan and ask for an additional allocation of water from the County to carry the City beyond the year 2000; (3) not go with the Nacimiento Plan as a contracting partner in anticipation of developing alternate sources of supply such as the State Water Project. City Council Minutes February II, 1974 Page 2 Mayor Schwartz noted that surplus of water from the Nacimiento Project might be available to the City as a condition to the use of the City's portion of Whale Rock Reservoir, or by lease from the other participating agencies. The City Council discussed some of the details of the Mayor's presentation on the City's participation in some project to supply supplemental water to the City, either through the NacJmiento proposal or by the already adopted State water plan coastal aqueduct. Mayor Schwartz opened the meeting to public participation. Clinton Milne, deputy county engineer, appeared before the City Council and complimented Mayor Schwartz on his detailed knowledge of the County Master Water Plan. He noted the proposal of the County Board of Supervisors to immediately take steps to implement the Nacimiento water supply portion of the County Plan. He stated that the county and various agencies and cities in the county were moving ahead with this plan. For example: both the cities of Paso Robles and Morro Bay had endorsed the concept of the project and had indicated a willingness to participate. The advisory group of Baywood Los Osos and the Board of Directors of Atascadero Water Mutual Company had also endorsed the project and had requested that their areas be included in the zone of the county flood control and water conservation district for project implementation. Clinton Milne continued that because of the substantial lead time needed prior to initial water deliveries for a project of this magnitude, it was the county's aim to request voter approval for issuance of bonds at the General Election to be held in November 1974, and he reminded the Council that in order to meet the schedule, any agency wishing to be included, must formally express an interest to be included in the project by February 15, 1974. March, ,April and May of 1974, the County Board of Supervisors would form a zone of the county flood control and water conservation district to handle the Nacimiento water supply. June 1974, the Supervisors would approve the ballot measure that would be submitted to the voters and November 5, 1974 would be the General Election for voter approval or rejection. After voter approval of the bond financing, negotiations for firm water contracts for agencies in the zone must be completed. These contracts would become effective only when signed by a number of agencies to insure a feasible project. Until such contracts were executed, no obligation would be incurred by the participating agencies. He therefore asked the City Council to make the following decision: (1) endorse the concept of the project and (2) request the County Board of Super- visors to form a zone of the county flood control and water con- servation district,;which would include the City of San Luis Obispo. Wally Burt, County Engineer's office, reviewed the City's projected population and water need to the year 1995. He felt that the estimated cost of water from the present project figures from Nacimiento would be $63 per acre foot, estimated cost at the Whale Rock Reservoir less the $18 per acre foot they estimated for Whale Rock storage, which would be a cost of $45 to the City of San Luis Obispo less the pumping cost from the Reservoir to the ' City, which he then estimated at $15 per acre foot, making an estimated total cost of $60 per acre foot to the City of San Luis Obispo. Therefore, he felt that 3,000 acre foot per year of water from Nacimiento would cost the City of San Luis Obispo $130,000 per year, but 3,000 acre foot of water from the State project would cost $480,000 per year, including the Nacimiento entitlement. He felt that his brief analysis of comparative costs should tip the cost to Nacimiento which would be cheaper than State water. City Council Minutes February II, 1974 Page 3 R. A. Paul, Water Department Director, noted that his office had worked closely with the County Engineer's Office in review of the very limited cost data that was presently available. He believed that all parties involved recognized that present cost estimates might be subject to extensive future modification, but that the present available cost information can provide a valid comparison of costs between alternate projects such as the Nacimiento Project and the State Coastal Aqueduct Branch. R. A. Paul continued that, although he had not been given an oppor- tunity to review Mr. Burt's cost figures prior to the Council meet- ing, he believed the methods used in determining the costs were erroneous and could therefore result in an incorrect conclusion - particularly in comparing the Nacimiento Project with the State Coastal Aqueduct Branch. In comparing the county's Nacimiento Project costs with the State's Coastal Aqueduct Branch costs, R. A. Paul noted that: A. The county unit unit cost of water, upon the equivalent the two projects by results in an errom Project. cost figures were based upon the annual average whereas the State unit cost figures were based annual unit cost. Comparing the unit costs of using the dissimilar methods of calculations Dous apparent economic advantage for the Nacimiento B. The county construction estimates were based upon mid -1973 construction costs, whereas the State's unit cost figures were based upon a projection of expected costs during the actual con- struction period. Comparing the costs of the two projects without considering the effect of construction cost escalation for the Nacimiento project results in an erroneous apparent economic advan- tage for the Nacimiento Project. C. Mr. Burt's cost figures included an estimate of the value of storage that the City would realize by use of the Whale Rock facility. But, in order to provide a comparable basis for evaluation, this effect must also be included in the evaluation of the State Project costs. R. A. Paul continued that the unit costs of supplemental water, as developed in City Water Department Report No. 1 -74, indicate the following ranking of project alternates based upon cost considerations: Ranking Project Estimated Cost per Acre Foot I State's Coastal Aqueduct, $ 95.00 Joint Project with Santa Barbara County 2 County's Nacimiento Pro- $116.00 ject, deliveries through existing facilities 3 State's Coastal Aqueduct $146.00 individual project 4 County's Nacimiento Pro- $166.00 ject, additional deliver- ies through new facilities City Council Minutes February II, 1974 Page 4 These costs had been submitted to the County Engineer's Office more than a month prior to the City Council meeting, and apparently had the concurrence of the County staff until Mr. Burt's presen- tation. R. A. Paul stated that, based upon presently available information, it was his opinion that both the short and long range costs to the City for supplemental water supplies could be more economically met by the State's Coastal Aqueduct than by the Na- cimiento Project. 9:20 P.M. Mayor Schwartz called a recess. 9:35 P.M. meeting reconvened, all Councilmen present. Bill Broadbent, representing CEBES, reviewed some of the details of cost presented by the County Engineer. Art Wilson, Secretary Manager of the San Luis_ Obispo County Build- ing Contractors' Association, stated that the Board of Directors of the Association urged the City Council to accept the invitation of the San Luis Obispo County Board of Supervisors to join'-the Lake Nacimiento water project and to receive when available an allotment of water from that source. The almost unanimous desire of the large contractor membership was to have the City of San Luis Obispo participate in the Lake Nacimiento project in order to assure an adequate source of water at the earliest possible date. The Board felt that this was a safe and sensible decision to sustain the economy and to protect the jobs of many hundreds of individuals in the building industry in San Luis Obispo. Also, the Building Contractors' Association Board of Directors felt that this action did not close the door to future possible acquisition from the California State water sources. Mayor Schwartz questioned Art Wilson as to his awareness of the effect of the Nacimiento Project upon possible future curtailment of the State's Project and the resultant limit upon City growth that could result. Fred Strong, Manager CEBES, asked the City Council to look into all facets of water supply before commiting themselves to any water supply option either the Nacimiento or the State water supply. He felt that in the future the county plan would shift from Na- cimiento to the State plan, which would allow agricultural developers to buy Nacimiento water while the cities and other urban areas could use State plan for municipal and industrial uses. He hoped that the Council would look to helping the area around the City to get water in view of the City's intention to keep the agricultural land as open space on the conservation element in accordance with the City plans. Steve Petterson, member of the City Planning Commission, asked for clarification of details for implementation of the State water plan to serve San Luis Obispo County. Mayor Schwartz again reviewed the State water plan and the timing for its implementation. Donald Smith urged the City Council not to make a decision on such an important item under pressure which would effect all the ci- tizens of the county and of the City for many years to come. Nick Musick, Cal Poly student, urged the City Council to consider using reclaimed water from the sewer plant for domestic purposes. There being no further comments in the audience, Mayor Schwartz closed the public portion of the meeting and restricted further discussion to the City Council and staff. City Council Minutes February II, 1974 Page 5 Councilman Gurnee stated that he was opposed to the Nacimiento plan due to the fact that all contractors would not run out of water at the same time. He felt that all contractors should have pro- portional allocations so that all would run out at the same time and that other supplemental sources could be located for implemen- tation. He also understood that at this time no environmental impact report had been submitted for the effect the Nacimiento would have on the county.- He also felt the project costs had not been carefully prepared.? He also felt the county was asking for a blank check from the voters for this plan. Further, the Whale Rock Dam and project had not been included in the cost of the project. He also felt that it was unfair for some contractors to pay less for water than other partners. He felt that the project is being sold in too much of a hurry without adequate information. He suggested that the county be asked to contnnue this decision until all the facts were in and all costs and allocations of water had been contracted for. He also felt that the plan should be rejected due.to its growth inducing potential. Councilman Norris stated that he felt the City of San Luis Obispo should try and go ahead with Santa Barbara County and develop the State plan which was best for all of San Luis Obispo County. But he felt that upon testimony presented to this date, that this was impractical due to North County cities and the coast wishing to proceed with the Nacimiento project. On this basis, he felt the best route for the City of San Luis Obispo would be to endorse the Nacimiento project, if some type of fairer allocation of costs could be made for delivery to each contractor. He concluded that the Nacimiento project was the only viable project available to the City at this time, and that the City of San Luis Obispo should move ahead and he would endorse the Nacimiento project as proposed. Councilman Brown stated that he felt the greatest benefit of the Nacimiento plan would be to the North County cities and Morro Bay. He felt that the best interests of the City of San Luis Obispo lay in the State water plan which was cheaper and more reliable and it was something that the County could grow into. Councilman Graham stated that he was in support of the State water plan and felt we should support the State plan with Santa Barbara County as he felt this was a more reliable and predictable source of water for the City of San Luis Obispo. Mayor Schwartz felt that the City of San Luis Obispo could acquire a temporary allocation for Nacimiento project surplus water as a condition to the use of the Whale Rock project excess storage. He felt this might be fair to help the county plan until other contractors needed the water, and this would take care of the City of San Luis Obispo through the critical period until the State water plan could be implemented. He felt that the City of San Luis Obispo would be making a mistake in going with the county Nacimiento plan. He also felt that the county allocation of costs to each contractor was unfair, as the City of San Luis Obispo would apparently be paying the highest cost and would be subsi- dizing cities such as Paso Robles, Atascadero, Templeton, Morro Bay and the Bay -Osos area. He felt that our best supply was from the State plan and that San Luis Obispo should cooperate with agricultural interests surrounding the City and in the South County areas and go along with Santa Barbara and implement the State plan. 1 L City Council Minutes February 11, 1974 Page 6 On motion of Councilman Gurnee, seconded by Councilman Graham that the City Council of the City of San Luis Obispo notify the county Board of Supervisors that the City of San Luis Obispo did not wish to be included in the proposed zone for implementation of the Nacimiento Project and that therefore its participation would be limited to cooperating in the use of the Whale Rock Project storage and perhaps contracting for the temporary use of Nacimiento Project surplus waters. Motion carried on the following roll call vote: AYES: Councilmen Gurnee., Graham and Brown, and . Mayor Schwartz NOES: Councilman Norris ABSENT: None 2. Continued discussion of the Open Space Element of the General Plan was again continued to the Regular Meeting of February 19, 1974. ' 3. City Clerk reported on the following bids received for supplying equipment to the City of San Luis Obispo in accordance with advertised specifications. Bids opened Thursday, February 7, 1974 at 10:00 A.M. BIDDER SEQUOIA MACHINERY P.O. Box 271 Fresno, CA LOUGEE- MICHAEL 427 W. Betteravie Rd. Santa Maria, CA ITEM NO. I Front End Loader Street Department NO BID $ 8,700.00 1,500.00 LESS $ 7,200.00 NET ITEM NO. 2 Rotary Mower Park Department • : I $3,586.00 82.00* $4,668.00 *To be added for options required in specifications. INTERNATIONAL HARVESTOR CO. $ 7,843.00 $4,910.00 P.O. Box 3447 1,243.00 LESS Anaheim, CA $ 6,600.00 NET WALLACE MACHINERY $10,550.00 NO BID P.O. Box 1220 750.00 LESS Santa Maria, .CA $ 9,800.00 NET KOIVISTO EQUIPMENT, INC. $10,518.19 NO BID P.O. Box 1370 1,800.00 LESS Santa Maria, CA $ 8,718.19 NET RYAN EQUIPMENT CO. $10,160.00 NO BID 665 W. Betteravia Rd. 1,300.00 LESS Santa Maria, CA $ 8,860.00 NET DEVIATIONS FROM SPECIFICATIONS LOUGEE- MICHAEL Item No. I - John Deere 302 A Loader - Delivery approximately 45 days. Item No. 2 - Woods Model D315 - 15 foot batwing rotary mower - Delivery approximately 60 days. L� J City Council Minutes February 11, 1974 Page 7 INTERNATIONAL HARVESTOR CO. Item No. I - Engine: 46 net horsepower Power Take -off: 540 r.p.m. at 2100 engine r.p.m. Loader: 3000 lb. lift capacity Delivery: On or before March I, 1974 Item No. 2 - Delivery: 60 - 90 days A.R.O. WALLACE MACHINERY Delivery 190 days. KOIVISTO EQUIPMENT, INC. Item No. I - IHC Model 2500 Series A, w /2050 A Loader - Delivery 120 days A.R.O. RYAN EQUIPMENT CO. Item No. I - Case 580 - B, 4 -speed forward - Delivery 60 - 90 days. R. D. Miller, Administrative Officer, reported to the_City Council that the low bidder, International Harvestor Co., did not meet specifications in horsepower, power take -off requirements and /or lifting capacity. Therefore, he recommended that the second bidder, Lougee - Michael Equipment Co., for a John Deere Loader be accepted. He recommended that the low bid of Lougee - Michael on the rotary mower for the Park Department be accepted. On motion of Councilman Graham, seconded by Councilman Gurnee that the low bid which met the specifications of Lougee - Michael on the loader be accepted and also the low bid on the rotary mower be accepted. Motion carried. R. D. Miller, Administrative Officer, brought to the Council's attention a request for permission to call for bids to be opened on February 25, 1974, to supply safety equipment in accordance with specifications for the City Police Department including weapons, belts, hand - cuffs, etc. On motion of Councilman Norris, seconded by Councilman Brown the request of the administrative officer was accepted, bids were authorized, and call for bids was approved. Motion carried. There being no further business to come before the Council, Mayor Schwartz declared the meeting adjourned. APPROVED: May 20, 1974 tzpatrick, City Clerk