Loading...
2021-9-14 CCB and Water Supply Alternatives Presentation CONSIDERATION OF PARTICIPATION IN CENTRAL COAST BLUE PROJECT AND PRELIMINARY DISCUSSION OF WATER SUPPLY ALTERNATIVES 9/14/2021 1 Project Description Regional recycled water project that will enhance supply reliability by injecting advanced purified water into the Santa Maria Groundwater Basin (SMGB) Lead agency, City of Pismo Beach Phase 1 – treat wastewater from the City of Pismo Beach to advanced level, inject into groundwater basin at key locations near coastline to reduce seawater intrusion, produce approximately 900-1,000 AFY Current proposal Phase 2 – would treat wastewater from the South San Luis Obispo County Sanitation District (SSLOCSD) 9/14/2021 Background – CCB Project 2 Council Considerations of CCB Operating Agreement March 23, 2021 – Approved Operating Agreement subject to condition that the cities of Pismo Beach and Grover Beach separately agree to enter into a Community Workforce Agreement for construction of the Project April 13, 2021 - Rescinded conditional approval of the Operating Agreement, directed the City Manager to draft a letter to the City Councils of Pismo Beach and Grover Beach requesting that certain items be address in the proposed Operating Agreement 9/14/2021 Background – CCB Project 3 Council Considerations of CCB Operating Agreement June 8, 2021 – Council considered letters from Pismo Beach and Grover Beach, asked the cities to provide a revised operating agreement that substantively addresses the two concerns the City raised in its prior letter, directed no cost contributions be made until a revised draft is received, and authorized the City Manager to negotiate terms 9/14/2021 Background – CCB Project 4 Proposed Terms Cost Sharing Agreement governing pre-construction and construction cost sharing Costs shared according to share of benefit Arroyo Grande’s share to be reduced from the 39% previously discussed among parties Joint Powers Agreement governing operations of the Project post-construction Board made up of one representative from each city Equal voting share Technical Advisory Committee – city staff 9/14/2021 CCB Revised Framework 5 Proposed Terms Pismo Beach retains lead agency status Decision-making and responsibility for entitlements, environmental compliance, procurement, and construction Each City Council approves Cost Sharing Agreement Joint Powers Agreement Project budget, scope, contingencies, costs exceeding approved budget plus contingencies 9/14/2021 CCB Revised Framework 6 Proposed Terms Joint City Council Meetings – Brown Act At least one, up to two, meetings per year Consider Cost Sharing and Joint Powers Agreements Receive updates regarding the project Discuss policy issues as needed Public venue to review and discuss the project Technical Advisory Committee – non-Brown Act Staff appointed by City Managers Meet monthly during pre-construction and construction Provide information and support to Joint City Council meetings 9/14/2021 CCB Revised Framework 7 Proposed Terms No provisions limiting participants’ groundwater pumping Arroyo Grande will consider Cost Sharing and Joint Powers Agreements before they are approved by Pismo Beach and Grover Beach Request that Arroyo Grande make an immediate contribution toward pre-construction costs Staff proposes to approve $86,000 to bring Arroyo Grande’s contributions equal to Grover Beach’s current contribution amount of $210,000 Prior City contributions total approx. $124,000 9/14/2021 CCB Revised Framework 8 Potential Arroyo Grande Share Consider current and future water demand and sources 2020 City Water Supply (NCMA Annual Report): 2020 City Water Production: 9/14/2021 CCB Revised Framework 9 Potential Arroyo Grande Share NCMA 2020 Annual Report indicates the City’s available supply was 2,367 AF more than demand HOWEVER Lopez Reservoir Low Reservoir Response Plan  10% reduction in deliveries due to current drought City’s 2,290 AFY deliveries reduced by 229 AF City’s full 1,323 of groundwater entitlement may be impacted by seawater intrusion threat 9/14/2021 CCB Revised Framework 10 Potential Arroyo Grande Share 25% of CCB Project would secure additional groundwater allocation of 225-250 AFY 25% of Total Estimated Costs $12,924,045.80 (with no additional grant awards) $5,767,609.25 (if Prop 1 grant is awarded) $2,962,477.75 (if Prop 1 and max Title XVI WRRG grants awarded) 9/14/2021 CCB Revised Framework 11 Cost Estimates 9/14/2021 CCB Revised Framework 12 9/14/2021 2004 Water Supply Alternatives Study Updates to Study by City consultant, MKN Associates Will be completed and presented to Council in coming months This report provides an update on the study that is underway, including identification of potential alternatives and some immediately identifiable constraints Water Supply Alternatives – Preliminary 13 9/14/2021 State Water – Long-term or Short-term Purchase or lease State Water from the County of San Luis Obispo (County), County of Santa Barbara, or current State Water recipients, such as the Oceano Community Services District (OCSD) County approved amendments to its Water Supply Contract with the State Department of Water Resources that may facilitate increased or new purchases of State Water Preliminary constraints include: City ballot measure approved 2016 allowing the City to purchase State Water only during times of water shortage emergencies Costs to purchase State Water can be prohibitively expensive depending on the contractor, especially if contractor requires payment of pipeline costs Purchase price is subject to negotiation Annual State Water deliveries vary widely based on water supply availability Water Supply Alternatives – Preliminary 14 9/14/2021 Oceano Community Services District water Temporary water supply agreement with the OCSD for a portion of its available surface water sources, such as State Water or Lopez Reservoir water Prior agreement in 2009-2015 Up to 100 AFY Cost = 105% of OCSD’s Lopez water costs (currently $1,674) Take or pay Preliminary constraints include: Limited ability for City to purchase State Water from OCSD pursuant to its existing ordinance Permanent sale subject to voter approval in Oceano pursuant to 2012 ballot measure Water Supply Alternatives – Preliminary 15 9/14/2021 Interagency Connections Potential connection to Nipomo Community Services District (NCSD), Golden State Water, or other systems Improve emergency supply options or long term water NCSD is continuing to make progress toward completion of its Supplemental Water Project, which will bring at least 2,500 AFY and up to 6,200 AFY of municipal blend water from the City of Santa Maria to the Nipomo Mesa Preliminary constraints: NCSD license agreement from Santa Barbara County Flood Control District for the pipeline across the Santa Maria River restricts ability to transport more than 3,000 AFY across the river Water Supply Alternatives – Preliminary 16 9/14/2021 Recycled Water “Scalping Plant” Concept Water treatment facility constructed near a City sewer main (ex. Fair Oaks Avenue near AG High School) to treat flows for local irrigation use, in exchange for reduced groundwater pumping by customer(s) Preliminary constraints include: Long-term agreements necessary with owners of agricultural operations near the proposed facility to ensure long-term use of the recycled water Diversion of wastewater to a scalping plant may impact a future Phase 2 of CCB Water Supply Alternatives – Preliminary 17 9/14/2021 CCB Nacimiento Project Nacimiento water would be wheeled through State Water customers’ systems to the City Water conservation Expanded conservation programs Stormwater capture New retention basins or modifications to existing basins to increase groundwater recharge Water Supply Alternatives – Preliminary 18 Recommendation It is recommended the City Council 1) consider authorizing the City Manager to negotiate a cost-sharing agreement and a Joint Powers Agreement governing the City’s participation in the Project consistent with the framework provided in Attachment 1; 2) authorize the immediate contribution of $86,000 to the Project from the Water Availability Fund for pre-construction costs; and 3) receive a preliminary report identifying water supply alternatives that may be available to the City and provide direction to staff regarding further analysis of identified alternatives. 9/14/2021 19 Grant Awards and Applications WaterSMART Title XVI Water Reclamation and Reuse Grant (Title XVI WRRG) awarded $1.7 million on August 5, 2021 Additional Title XVI funding decisions will likely occur on an annual basis Application submitted September 7, 2021, seeking $28.6 million in grant funding from the Proposition 1 Groundwater Grant Program (Prop 1 GWGP) (Round 3) If awarded, will provide funding for more than 50% of construction costs Funding decisions likely in Q1/Q2 2022 Final proposals likely due late 2021/early 2022 To date, $4,496,094 in federal and State grants awarded to Project 9/14/2021 Background – CCB Project 20