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
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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
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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
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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
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Background
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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
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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
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Proposed Joint Powers Agreement
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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
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Proposed Joint Powers Agreement
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Financing Agreements will obligate member agencies to share of Project debt
Cost Sharing Agreement attached as Exhibit and incorporated by reference
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Proposed Joint Powers Agreement
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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
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Costs
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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
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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
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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
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