CC 2020-06-09_10a Central Coast Blue Cost Sharing MOA_PPCentral Coast Blue Updated Cost Sharing MOA
Arroyo Grande City Council - June 9, 2020
1
Presentation Overview
Overview of MOA
Financial Information
Funding/Financing Update
2
Cost Sharing MOA
3
Cost and benefit sharing framework
Participating and Contributing Agencies identification
Framework for managing groundwater pumping w/ and w/o the Project
Pre-Construction, Construction and O&M cost sharing percentages definition
Structure for future Buy-in Costs and use of Grant Funding
Outline for potential future Cost Sharing Modifications
Key MOA Terms
Original MOA Terms
4
City Council Input Modifications
Inclusion of Opt-out clauses
Direct reference to 2002 Management Agreement Update
Updated Water Purveyor Cost Sharing Percentages
Increased specificity regarding Replacement Water Cost
Addresses legal cost sharing
Clarification regarding use of grant funds
Addresses potential future outfall diversion requirements
Updated MOA Term Sheet
5
Financial information
6
Modified Cost Share based on Water Demand
5% currently unsubscribed
Unsubscribed percentage to be shared evenly until:
Additional project partners are identified;
Or cost share percentages are re-adjusted
Updated Cost Share Percentages
7
Pismo Beach led initial project efforts
Anticipated Arroyo Grande and Grover Beach will contribute higher percentages until contributions match cost share percentages
50% Arroyo Grande; 50% Grover Beach, if funding is available
Reconciliation of Costs Spent To Date
8
Funding/Financing Update
9
Prop 1 Groundwater Grant Program
Round 1 Planning Grant (awarded $2M)
Aerial Geophysics survey
Test Injection Design
Round 3 Implementation Funding (50% of Capital Costs)
Applications in Winter 2020/21
Cost Sharing Agreements, Permitting and CEQA tasks critical to position for funding
Funding/Financing Update
10
USBR Title 16 Grant Funding (25% of total Project Costs)
Project Award $800k
2020 FY FOA anticipated in Summer 2020, if released
Potent Infrastructure Stimulus Bill
State Revolving Funding (Low Interest Financing)
Targeting Certified EIR and complete application package by end of 2020
Funding/Financing Update
Salud is vice-chair of Infrastructure Committee
Funnel through existing programs
11
Program Schedule
Certified EIR & CWSRF Application
Round 3 Prop 1 GWGP Application
FY 2021 Title XVI FOA
12
Grover Beach City Council
MOA Framework Approved – June 1st, 2020
Pismo Beach City Council
MOA Framework Approved – June 2nd, 2020
Arroyo Grande City Council
MOA Special Presentation – June 9th, 2020
MOA Framework Approval – June 23rd, 2020
Finalize MOA – June/July 2020
Related initiatives:
Update 2002 NCMA Management Agreement - Summer 2020
MOA Next Steps
13
14
Approximately 1.5 acres unpaved storage yard
Located at southern end of Huber and Barca St.
APN 060-543-016
Offsite ATF Location
Assumptions:
1. Treatment Facility includes costs for building and storage facilities sized for Phase 2.
2. Cost estimate range developed using Association for the Advancement of Cost Engineering Cost Estimate Classification (-20% to +30%) and the Advanced Treatment Facility with and without
Boron Removal.
3. Annual Capital Payment assumes 5% financing over 30 years.
4. Unit cost based on a range of 1.0 to 1.44 increase in groundwater yield associated with the project, based on groundwater modeling results.
15
Current cost estimates represent the best available estimates for the onsite (SSLOCSD) Advanced Water Purification Facility alternative.
Project cost estimates for Offsite ATF are currently under development
Estimated Capital Costs include remaining implementation costs
Estimated accuracy range of -20% to +30% based on best available information of actual costs from similar projects
Overall Project Cost Estimates
Assumptions:
1. Treatment Facility includes costs for building and storage facilities sized for Phase 2.
2. Cost estimate range developed using Association for the Advancement of Cost Engineering Cost Estimate Classification (-20% to +30%) and the Advanced Treatment Facility with and without
Boron Removal.
3. Annual Capital Payment assumes 5% financing over 30 years.
4. Unit cost based on a range of 1.0 to 1.44 increase in groundwater yield associated with the project, based on groundwater modeling results.
16
Pre-Construction Tasks
RWQCB & DDW Permitting
Final Design
Funding & Financing Support
Prop 1 GWGP
Title XVI
CWSRF
Program Management
Anticipated Remaining Pre-Construction Costs
1Includes usage of $800k in previously awarded Title XVI Grant to reduce costs in FY 2020/21
2Contributions may be higher to equalize cost spent to date w/ cost share percentages
17
Environmental Impact Report
Jan
Feb
Q1
Mar
Apr
May
Q2
Jun
Jul
Aug
Q3
Sep
Oct
Now
Q4
Dec
2020
2021
Jan
Notice of Preparation
Admin Draft
Public Draft
Final EIR, NOD & MMRP
Public Hearings
Public Scoping Meeting
Updated EIR Transition
Planning Commission & City Council Meetings
Critical Milestone for funding
18
Offsite ATF Location
19