CC 2022-01-25 CCB Project_PP Presentation
Consideration of Approval of a Cost Sharing Agreement with the Cities of Grover Beach and Pismo Beach for the CCB Project and Resolution Authorizing an Application to the State Water
Resources Control Board for a State Revolving Fund Loan for the Project
1/25/2022
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
900-1,000 AFY
Phase 2 – would treat wastewater from the South San Luis Obispo County Sanitation District (SSLOCSD)
1/25/2022
Background
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April 13, 2021 - Rescinded conditional approval of the Operating Agreement, directed the City Manager to draft a letter to the City Councils of Pismo Beach and Grover Beach requesting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
May 24, 2021 – Letters received from City Managers of Grover Beach and Pismo Beach
1/25/2022
Background
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
1/25/2022
Background
4
Council Consideration of Revised Framework
September 14, 2021 – New cost-sharing and governance framework presented to the City Council, which directed staff to negotiate a cost sharing agreement consistent with the new framework
terms
Reduced share for Arroyo Grande
JPA model for operations of the Project
Joint Council Meetings
Approval of pre-construction and construction budgets
1/25/2022
Background
5
Consistent with Revised Framework, with a few exceptions:
Project Shares:
Pismo Beach – 39%
Grover Beach – 36%
Arroyo Grande – 25%
JPA will be formed earlier, prior to construction, in order to obtain financing for construction of the Project
JPA will own title to the Project site
Financing plan contemplated
1/25/2022
Proposed Agreement
6
Terms included as identified in the revised framework:
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
1/25/2022
Proposed Agreement
7
Terms included as identified in the revised framework:
Joint City Council Meetings – Brown Act
At least one, up to two, meetings per year
Receive updates regarding the project
Discuss policy issues as needed
Public venue to review and discuss the project
Technical Advisory Committee – non-Brown Act
1/25/2022
Proposed Agreement
8
Terms included as identified in the revised framework:
Costs exceeding approved budgets, including 20% contingency, require approval of the three City Councils
No provisions limiting participants’ groundwater pumping
Project water cannot be moved outside of the NCMA without the parties’ approval
Local hire provisions
1/25/2022
Proposed Agreement
9
Arroyo Grande share
25% of CCB Project water would secure additional groundwater allocation of 225-250 AFY
25% of Total Estimated Construction Costs
$12,924,045.80 (with no additional grant awards)
$5,767,609.25 (if Prop 1 GWGP grant is awarded)
$2,712,477.75 (if Prop 1 GWGP, Prop 1 IRWM, and max Title XVI WRRG grants awarded)
1/25/2022
Costs
10
1/25/2022
Costs
11
CWSRF Application
Application for financial assistance from the Clean Water State Revolving Fund submitted on December 30, 2021, to meet deadline for funding in 2023
All three cities submitted applications for their respective shares of construction costs during last week of 2021
Pismo Beach submitted an application on behalf of the JPA seeking funding for all construction costs
Applications require authorizing resolution of the City Council
Arroyo Grande’s application submitted with letter clarifying the City’s role in the project and need to obtain authorization from the City Council
Application to be withdrawn if authorization not granted
No obligation at this time for City to obtain financing from CWSRF – intent to withdraw if/when JPA is formed and obtains financing
1/25/2022
12
Recommendation
It is recommended the City Council
1) Consider and authorize the City Manager to execute a Cost Sharing Agreement for the Central Coast Blue project; and
2) Consider and approve the proposed Resolution authorizing the City Manager to apply for financial assistance from CWSRF administered by the State Water Board for the City’s share of
anticipated construction costs for the Project.
1/25/2022
13
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
1/25/2022
Grant Opportunities
14