HomeMy WebLinkAbout02/11/1974MINUTES
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.
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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