CC 2020-01-28_11b Central Coast Blue Memorandum of Agreement Framework_PP PresentationCentral Coast Blue
Draft Memorandum of Agreement
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Basics
Seawater barrier
Freshwater curtain
Adding water to the basin
Instead of going to the ocean, it goes into the basin
1,100 acre feet per year
Allows each partner to retrieve this water
Water taken is based on how much each agency contributes
Grover Beach 41%; Arroyo Grande 39%, Pismo Beach 20%
Also allows the ability to take more water in a safe manner during a drought
Oversized to accommodate flows from the SSLOCSD wastewater in the future (Phase 2).
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The Basics Visualized
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Other Options Considered
Conservation
Raising LakeLopez spillway
Supplemental State water
Cloud seeding
Desalinated water
Recycled water technically feasible, cost comparable or less expensive, and provides protection to groundwater in addition to providing adequate supplies during droughts and successive
dry years
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Memorandum of Agreement
Draft form
Cost distribution based upon current groundwater allocation
Benefits correspond to cost contribution
Pay 39% of the cost, get 39% of the water.
Catch-up provision to share current costs already paid based on cost distribution.
AG and Grover Beach will pay future preconstruction cost until caught up to what Pismo has already paid.
Commitment in the next 2-3 months
Will assist greatly in increasing the chance of obtaining grant funds
Potentially grants could pay for half the construction costs $15-20 million
Pismo Beach and Grover Beach are both moving forward
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AG’s Cost Share
39% of Pre-Construction
$2,411,544
39% of construction costs
$13,818,810
Debt service - $624,000 annually
39% of Operations and Maintenance
$881,400 annually
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When
Construction in 2022
Project completion 2024
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Next Steps
Review the MOA and provide input to staff to be used in upcoming Central Coast Blue staff level discussions (tonight’s item).
Review water rate increases necessary to implement Central Coast Blue and consider a Proposition 218 rate process (February and March).
If rate increases are successful through the Propositions 218 process, Council can consider signing the MOA and fully commit to the project.
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Recommendation
It is recommended the Council review the draft Memorandum of Agreement cost-sharing framework for Central Coast Blue and provide input to staff regarding next steps.
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