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CC 2022-09-27_11a CCB PP Presentation Consideration of: - Approval of a Joint Exercise of Powers Agreement Creating the Central Coast Blue Regional Recycled Water Authority and - Appointment of a Representative to the Authority Board of Directors 9/27/2022 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 AFY Phase 2 – would treat wastewater from the South San Luis Obispo County Sanitation District (SSLOCSD) 9/27/2022 Background 2 Cost Sharing Agreement approved by the City Council on January 25, 2022 Project Shares: Pismo Beach – 39% Grover Beach – 36% Arroyo Grande – 25% Pismo Beach retains lead agency status Decision-making and responsibility for entitlements, environmental compliance, procurement, and construction 9/27/2022 Background 3 Cost Sharing Agreement JPA will be formed prior to construction and will: Seek financing for construction of the Project Own title to the Project site and all Project components Operate the Project following completion of construction Local hire provisions Requires contractors submitting bids to Pismo Beach to make good faith efforts, as defined in the agreement, to recruit and maintain SLO and SB County residents 9/27/2022 Background 4 Cost Sharing Agreement Each City Council approves Cost Sharing Agreement Joint Powers Agreement Project budget, scope, contingencies, costs exceeding approved budget plus contingencies Joint meetings of the three City Councils First meeting held September 14, 2022 9/27/2022 Background 5 The Joint Powers Agreement presented for consideration includes the following: Creates the Central Coast Blue Regional Recycled Water Authority (Authority) Authority will own and operate the Project, the facility site, and all ancillary facilities Powers of the Authority include ability to make contracts, employ staff and consultants, acquire and dispose of property, issue bonds and incur debts and liabilities, apply for grants 9/27/2022 Proposed Joint Powers Agreement 6 Authority Board One representative from each City Meet at least quarterly Majority vote required to take action Reimbursement of costs and expenses, but no compensation Annual budget process Unanimous vote, except for the first budget 9/27/2022 Proposed Joint Powers Agreement 7 Financing Agreements will obligate member agencies to share of Project debt Cost Sharing Agreement attached as Exhibit and incorporated by reference 9/27/2022 Proposed Joint Powers Agreement 8 Projected Costs Currently estimated to be $92,595,000 Grant Opportunities Awarded $17,120,000 in federal and State grants to date May receive $29,178,000 of additional federal and State grants Estimated remaining Project costs after grant funding = $46,297,000 9/27/2022 Costs 9 The City’s portion of the estimated remaining $46,297,000 in Project costs is $11,574,250 Anticipated to be financed through low interest loans provided by federal or State programs such as the Water Infrastructure Finance and Innovation Act (WIFIA) and/or the State Revolving Fund  Operating and maintenance costs currently projected to begin in 2026  Water and Sewer Rates approved by Council on March 8, 2022, provides recommended water rates necessary to fund the City’s share of costs for the Project 9/27/2022 Costs 10 Appointment to Authority Board In addition to approval of the CCB JPA Agreement, it is recommended that the City Council appoint a representative to the Authority Board Appointments to regional and local committees and boards typically occurs in December of each year Appointment of a representative to the Authority Board at this time will allow the Board to meet between now and December, if needed to meet grant or loan application requirements for the Project New appointment may occur in December 9/27/2022 11 Recommendation It is recommended the City Council 1) Authorize the Mayor to execute a Joint Exercise of Powers Agreement Creating the Central Coast Blue Regional Recycled Water Authority (Authority); and 2) Appoint a member of the City Council to the Authority Board of Directors 9/27/2022 12