Agenda packet — Arroyo Grande City Council, September 27, 2022 (part 1 of 4)

CITY COUNCIL MEETING

AGENDA SUMMARY

Tuesday, September 27, 2022, 6:00 p.m.

In person at:

Arroyo Grande City Council Chambers
215 E. Branch Street, Arroyo Grande, CA 93420
AND via Zoom at:
https://us02web.zoom.us/j/83255848846
Please click the link above to join the Zoom Meeting:

Webinar ID: 832 5584 8846
Or by Telephone: 1-669-900-6833; 1-346-248-7799
In compliance with Assembly Bill (AB) 361, which allows for a deviation of teleconference rules required by the Ralph M. Brown Act, this City Council meeting is being conducted in a hybrid in-person/virtual format.

Members of the public may participate and provide public comment on agenda items during the meeting in person at the location identified above, by joining the Zoom meeting, or by submitting written public comments to the Clerk of the Council at [email protected]. Meetings will be broadcast live on Channel 20 and streamed on the City’s website and www.slo-span.org.

1. CALL TO ORDER

2. ROLL CALL

3. MOMENT OF REFLECTION

4. FLAG SALUTE

5. AGENDA REVIEW

5.a. Closed Session Announcements
None.

5.b. Ordinances read in title only
Move that all ordinances presented at the meeting shall be read by title only and all further readings be waived.

6. SPECIAL PRESENTATIONS

6.a. Update Regarding Countywide COVID-19 Efforts
(McDONALD)
Recommended Action:

Receive update, accept public comments, discuss, and provide direction as necessary.

6.b. City Manager Communications
(McDONALD)
Recommended Action:

Receive correspondence/comments as presented by the City Manager and Provide direction, as necessary.

6.c. Honorary Proclamation - Native American & Indigenous Peoples Heritage Month 2022

6.d. Honorary Proclamation - Fire Prevention Week 2022

7. COMMUNITY COMMENTS AND SUGGESTIONS
This public comment period is an invitation to members of the community to present issues, thoughts, or suggestions on matters not scheduled on this agenda. Comments should be limited to those matters that are within the jurisdiction of the City Council. Members of the public may provide public comment in-person or remotely by joining the Zoom meeting utilizing one of the methods provided below. Please use the “raise hand” feature to indicate your desire to provide public comment.

Click the link below to join the webinar: https://us02web.zoom.us/j/83255848846; Webinar ID: 832 5584 8846
•
Or by Telephone: 1-669-900-6833; 1-346-248-7799
Press * 9 to “raise hand” for public comment
•
The Brown Act restricts the Council from taking formal action on matters not published on the agenda. In response to your comments, the Mayor or presiding Council Member may:
• Direct City staff to assist or coordinate with you.
• A Council Member may state a desire to meet with you. • It may be the desire of the Council to place your issue or matter on a future Council agenda.

Please adhere to the following procedures when addressing the Council:
• Comments should be limited to 3 minutes or less.
• Your comments should be directed to the Council as a whole and not directed to individual Council members.
• Slanderous, profane or personal remarks against any Council Member or member of the audience shall not be permitted.

8. CONSENT AGENDA
The following routine items listed below are scheduled for consideration as a group. The recommendations for each item are noted. Any member of the public who wishes to comment on any Consent Agenda item may do so at this time. Any Council Member may request that any item be withdrawn from the Consent Agenda to permit discussion or change the recommended course of action. The City Council may approve the remainder of the Consent Agenda on one motion.

8.a. Consideration of Cash Disbursement Ratification
(VALENTINE)
Recommended Action:

Ratify the attached listing of cash disbursements for the period of August 16 through August 31, 2022.

8.b. Consideration of Adoption of a Resolution Declaring a Continued Local Emergency Related

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to the COVID-19 Pandemic and Authorizing the Continuance of Remote Teleconference Meetings of the Legislative Bodies Pursuant to Government Code Section 54953(e)(3) (McDONALD)
Recommended Action:

Adopt a Resolution declaring a continued local emergency related to the Coronavirus (COVID-19) pandemic and authorizing the continuance of remote teleconference meetings pursuant to Government Code Section 54953(e)(3).

8.c. Consideration of Adoption of a Resolution Approving the Amended and Restated Contract Between San Luis Obispo County Flood Control and Water Conservation District and the City of Arroyo Grande for Water Supply from Lopez Reservoir (ROBESON)
Recommended Action:

Adopt a Resolution approving execution of the amended and restated water supply contract with the San Luis Obispo County Flood Control and Water Conservation District.

8.d. Consideration of First Amendment to the Communications Site Lease Agreement (“Lease”) with T-Mobile West, LLC (“T-Mobile”), for the Operation of a Telecommunications Facility Located at Branch Mill Road (Reservoir 4)
(McDONALD\CARMEL)
Recommended Action:

Approve the First Amendment to the Communications Site Lease Agreement (“Lease”) with T-Mobile West, LLC (“T-Mobile”), successor in interest to Cingular Wireless, for the operation of a telecommunications facility located at Branch Mill Road, commonly known as the Reservoir 4 site.

8.e. Approval of Minutes
Approve the minutes of the Regular City Council Meeting of September 13, 2022.

8.f. Consideration of Conflict of Interest Code Biennial Review and Resolution Amending the City of Arroyo Grande Conflict of Interest Code
(MATSON)
Recommended Action:

Adopt a Resolution approving an amended Conflict of Interest Code for designated positions.

8.g. Consideration of an Agreement for Police Fleet Lease and Purchase and Resolution Declaring Vehicles as Surplus
(MARTINEZ)
Recommended Action:
1) Authorize the purchase of (a) thirteen (13) vehicles from Mullahey Ford, (b) vehicle fleet upfitting from Dana Safety Supply, (c) MDC Computers from Code3 Technologies, and (d) dash cameras from Safe Fleet; 2) Authorize a financing agreement for nine (9) Patrol vehicles and upfitting for a total not to exceed the amount of $749,103, through a 4-year municipal lease from Holman Capital Corporation at an APR of 4.57% (4 annual payments of approximately $201,583); 3) Authorize the cash purchase of four (4) vehicles and upfitting not to exceed the amount of $204,395; 4) Adopt a Resolution declaring existing Police vehicles as surplus and authorizing their sale; and 5) Authorize the City Manager to

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execute all necessary documents.

8.h. Consideration to Award Construction Contract to G. Sosa Construction, Inc. for 2022 Pedestrian Crossing Improvement Project, PW 2021-08, and Authorization of Budget Adjustment for $90,618 from Unexpended FY 2021-22 CIP Budget Funds (ROBESON)
Recommended Action:
1) Award a construction contract to G. Sosa Construction, Inc. in the amount of $321,202.75 and authorize the City Manager to approve change orders for up to 10% of the contract amount, $32,120.25, for unanticipated costs during the construction phase of the project (construction contract costs = $321,202.75 + $32,120.25 = $353,323); and 2) Approve a budget adjustment to appropriate $90,618 from unexpended FY 2021-22 Capital Improvement Program budget funds to cover the subject project expenditures.

8.i. Monthly Water Supply and Demand Update
(ROBESON)
Recommended Action:

Receive and file the monthly Water Supply and Demand Report.

8.j. Consideration to Adopt a Resolution Pursuant to Public Contract Code Section 22050 Determining to Continue Work Under Emergency Contracts for the FCFA Station 1 Emergency Generator Replacement Project, PW 2021-09
(ROBESON)
Recommended Action:
1) Receive and file an update of the emergency generator replacement project at the FCFA Station 1; and 2) Adopt a Resolution determining that there is a need to continue the emergency action for the replacement of the emergency generator in accordance with Public Contract Code Section 22050.

8.k. Consideration of Adoption of an Ordinance Amending Title 16 of the Arroyo Grande Municipal Code Regarding Accessory Dwelling Units and Adoption of a Resolution Approving an Accessory Dwelling Unit Fee Waiver Program (PEDROTTI)
Recommended Action:

Adopt the Ordinance amending development regulations for ADUs and adopt a Resolution establishing the ADU Fee Waiver Program.

8.l. Consideration of Temporary Use Permit 22-011 Authorizing the Temporary Closure of Branch Street for Halloween in the Village on Monday, October 31, 2022; Applicant – Krista Bandy
(PEDROTTI)
Recommended Action:

Adopt a Resolution approving Temporary Use Permit 22-011, authorizing the closure of East and West Branch Streets to accommodate Halloween in the Village.

8.m. Consideration of Adoption of a Resolution Amending the Citywide Combined Salary Schedule to Establish a Pay Schedule for a Temporary Part-Time Acting Capital Improvement Project Manager

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(ROBESON)
Recommended Action:

Adopt the Resolution amending the Citywide Combined Salary Schedule to include a new position for a Temporary Part-Time Acting Capital Improvement Project Manager.

9. PUBLIC HEARINGS

9.a. Discussion and Consideration of Introduction of Ordinance Amending Title 16 of the Arroyo Grande Municipal Code Regarding Short Term Rentals (Vacation Rentals and Homestays); Development Code Amendment 22-002
(PEDROTTI)
Recommended Action:

Introduce an Ordinance amending Title 16 of the AGMC regarding Short Term Rentals.

9.b. Discussion and Consideration of Introduction of Ordinance Amending Title 16 of the Arroyo Grande Municipal Code (AGMC) Regarding a Permanent Parklet Program; Development Code Amendment 22-003; Location – Citywide
(PEDROTTI)
Recommended Action:

Introduce an Ordinance establishing a permanent parklet program.

10. OLD BUSINESS
None.

11. NEW BUSINESS

11.a. Discussion and 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
(McDONALD)
Recommended Action:
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

12. CITY COUNCIL REPORTS

12.a. MAYOR RAY RUSSOM:

1. California Joint Powers Insurance Authority (CJPIA)

2. South San Luis Obispo County Sanitation District (SSLOCSD)

3. Tourism Business Improvement District Advisory Board

4. Other

12.b. MAYOR PRO TEM GEORGE:

1. County Water Resources Advisory Committee (WRAC)

2. Visit SLO CAL Advisory Board

3. Other

12.c. COUNCIL MEMBER BARNEICH:

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1. Audit Committee

2. Homeless Services Oversight Council (HSOC)

3. Zone 3 Water Advisory Board

4. Other

12.d. COUNCIL MEMBER PAULDING:

1. Air Pollution Control District (APCD)

2. Brisco/Halcyon Interchange Subcommittee
Council of Governments/Regional Transit Authority/ South County Transit (SLOCOG/SLORTA/SCT)

3. 4. REACH SLO Advisory Commission

5. Other

12.e. COUNCIL MEMBER STORTON:

1. Brisco/Halcyon Interchange Subcommittee

2. Five Cities Fire Authority (FCFA)

3. Integrated Waste Management Authority Board (IWMA)

4. South County Chambers of Commerce Governmental Affairs Committee

5. Other

13. COUNCIL COMMUNICATIONS
Any Council Member may ask a question for clarification, make an announcement, or report briefly on his or her activities. In addition, subject to Council policies and procedures, Council Members may request staff to report back to the Council at a subsequent meeting concerning any matter or request that staff place a matter of business on a future agenda. Any request to place a matter of business for original consideration on a future agenda requires the concurrence of at least one other Council Member.

14. CLOSED SESSION
None.

15. ADJOURNMENT
All staff reports or other written documentation, including any supplemental material distributed to a majority of the City Council within 72 hours of a regular meeting, relating to each item of business on the agenda are available for public inspection during regular business hours in the City Clerk’s office, 300 E. Branch Street, Arroyo Grande. If requested, the agenda shall be made available in appropriate alternative formats to persons with a disability, as required by the Americans with Disabilities Act. To make a request for disability-related modification or accommodation, contact the Legislative and Information Services Department at 805-473-5400 as soon as possible and at least 48 hours prior to the meeting date.

This agenda was prepared and posted pursuant to Government Code Section 54954.2 Agenda reports can be accessed and downloaded from the City’s website at www.arroyogrande.org If you would like to subscribe to receive email or text message notifications when agendas are posted, you

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can sign up online through the “Notify Me” feature.

City Council Meetings are cablecast live and videotaped for replay on Arroyo Grande’s Government Access Channel 20. The rebroadcast schedule is published at www.slo-span.org.

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Item 6.c.

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Item 6.d.

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Item 8.a.

MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Administrative Services Director BY: Lynda Horejsi, Accounting Manager
SUBJECT: Consideration of Cash Disbursement Ratification DATE: September 27, 2022
SUMMARY OF ACTION:

Review and ratify cash disbursements.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

There is a $1,220,668.81 fiscal impact that includes the following items:
• Accounts Payable Checks $824,557.50
• Payroll & Benefit Checks $396,111.31
RECOMMENDATION:

Ratify the attached listing of cash disbursements for the period of August 16 through August 31, 2022.

BACKGROUND:

Cash disbursements are made weekly based on the submission of all required documents supporting the invoices submitted for payment. Prior to payment, Administrative Services staff reviews all disbursement documents to ensure that they meet the approval requirements adopted in the Municipal Code and the City’s Purchasing Policies and Procedures Manual.

ANALYSIS OF ISSUES:

The attached listing represents the cash disbursements required of normal and usual operations during the period. The disbursements are accounted for in the FY 2021-22 and FY 2022-23 budgets.

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Item 8.a.

City Council
Consideration of Cash Disbursement Ratification
September 27, 2022

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ALTERNATIVES:

The following alternatives are provided for the Council’s consideration:

1. Approve staff’s recommendation;

2. Do not approve staff’s recommendation; or

3. Provide other direction to staff.

ADVANTAGES:
 The Administrative Services Department monitors payments of invoices for accountability, accuracy, and completeness using standards approved by the City Council.
 Invoices are paid in a timely manner to establish goodwill with merchants.  Discounts are taken where applicable.

DISADVANTAGES:

There are no disadvantages identified in this recommendation.

ENVIRONMENTAL REVIEW:

No environmental review is required for this item.

PUBLIC NOTIFICATION AND COMMENTS:

The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2.

Attachments:

1. August 16 – August 31, 2022 – Accounts Payable Check Register

2. August 26, 2022 – Payroll and Benefit Check Register

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CITY OF ARROYO GRANDE

CHECK LISTING
AUGUST 16 - AUGUST 31, 2022
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name1 08/18/2022 294895 $ 4,839.46 09/22 RETIREE MEDICAL 010.4099.5136 ICMA RETIREMENT CORP2 08/18/2022 294895 368.87 09/22 RETIREE MEDICAL 220.4303.5136 ICMA RETIREMENT CORP3 08/18/2022 294895 462.03 09/22 RETIREE MEDICAL 010.0000.1111 ICMA RETIREMENT CORP4 08/19/2022 294896 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 KARA ADAMS5 08/19/2022 294897 281.50 TRAINING, TUITION- POLICE ACADEMY 010.4203.5501 ALLAN HANCOCK COLLEGE JCCD6 08/19/2022 294898 268.49 EMPLOYEE WELLNESS SUPPLIES 010.4201.5303 AMAZON CAPITAL SERVICES7 08/19/2022 294898 117.95 PUBLIC RELATIONS SUPPLIES 010.4201.5504 AMAZON CAPITAL SERVICES8 08/19/2022 294898 643.82 OFFICE SUPPLIES 010.4201.5201 AMAZON CAPITAL SERVICES9 08/19/2022 294898 158.78 UNIFORMS-BOOT/SHOE BUFFER 010.4203.5272 AMAZON CAPITAL SERVICES10 08/19/2022 294898 385.01 LOCK BOXES FOR PATROL FLEET 010.4204.5255 AMAZON CAPITAL SERVICES11 08/19/2022 294899 167.92 08/22 COMM MAINT 010.4204.5606 APPLIED TECHNOLOGY GROUP INC12 08/19/2022 294900 390.00 07/22 VILLAGE WATERING 010.4420.5605 ARROYO GRANDE IN BLOOM INC13 08/19/2022 294901 33.97 ACCT#235841-39568063 ALARM 220.4303.5303 AT & T14 08/19/2022 294901 198.33 ACCT#238451-01839190 RADIO 010.4145.5403 AT & T15 08/19/2022 294902 387.68 PD-4605 MAINT & REPAIR 010.4203.5601 BACK ON THE ROAD AUTOMOBILE16 08/19/2022 294902 949.88 PW-8 ENG TRUCK REPAIR 010.4301.5601 BACK ON THE ROAD AUTOMOBILE17 08/19/2022 294902 542.54 PD-4607 MAINT & REPAIR 010.4203.5601 BACK ON THE ROAD AUTOMOBILE18 08/19/2022 294903 274.20 PW-405 FILTERS, OIL 010.4420.5603 BERCHTOLD EQUIPMENT CO19 08/19/2022 294904 96.00 PEST CONTROL: WOMENS CLUB 010.4213.5303 BREZDEN PEST CONTROL, INC20 08/19/2022 294904 96.00 PEST CONTROL: WOMENS CLUB 010.4213.5303 BREZDEN PEST CONTROL, INC21 08/19/2022 294904 134.00 PEST CONTROL: FCFA 010.4213.5303 BREZDEN PEST CONTROL, INC22 08/19/2022 294905 13,845.40 07/22 PROF LEGAL SVCS 010.4003.5304 CARMEL & NACCASHA, LLP23 08/19/2022 294905 39.00 07/22 LITIGATION & RELATED MATTERS 010.4003.5304 CARMEL & NACCASHA, LLP24 08/19/2022 294906 987.20 ACCT#8245100960223598-PD DARK 010.4145.5401 CHARTER COMMUNICATIONS25 08/19/2022 294907 153.25 GREEN WASTE DUMP-GRANDMOTHERS PARK 220.4303.5307 COLD CANYON LANDFILL, INC26 08/19/2022 294908 100.01 (2) NICKEL PLATED BALL VALVE 220.4303.5603 CONTRACTORS MAINT.SERVICES27 08/19/2022 294909 1,350.00 SUMMER SESSIONS-MATH & READING 010.4424.5351 CROSSROADS LEARNING NETWORK28 08/19/2022 294910 315.00 WRITING FROM LIFE SUMMER SESSION 1 010.4424.5351 GAYLE CUDDY29 08/19/2022 294911 40.00 FTO TRAINING- POST PER DIEM 5 X $8 010.4203.5501 ANTHONY ESTRADA30 08/19/2022 294912 61.53 SOTO-MALE ADAPTER, COUPLER, BRASS BALL 010.4430.5605 FARM SUPPLY CO31 08/19/2022 294912 393.28 12' ALUMINUM ORCHARD LADDER 010.4420.5605 FARM SUPPLY CO32 08/19/2022 294913 1,082.08 TRASH CAN LINERS 010.4420.5605 FASTENAL COMPANY33 08/19/2022 294914 1,078.00 SERGER SEWING SUMMER SESSION 010.4424.5351 MARY JO GABEL34 08/19/2022 294915 4,032.49 GHD TRAFFIC REVIEW SERVICES 010.4301.5303 GHD INC35 08/19/2022 294916 200.00 REIMBURSE LUNCH-ACTIVE SHOOTER 010.4203.5501 GROVER BEACH POLICE DEPT36 08/19/2022 294917 185.00 STUMP GRINDER RENTAL 220.4303.5552 GROVER TOOL AND RENTALS37 08/19/2022 294917 295.00 CHIPPER RENTAL 220.4303.5552 GROVER TOOL AND RENTALS38 08/19/2022 294918 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 ANTHONY HERNANDEZ39 08/19/2022 294919 2,420.89 (31) 3/4" CUSTOMER VALVES 640.5946.7001 ICONIX WATERWORKS (US) INC40 08/19/2022 294919 171.05 60FT 4" SDR35 PVC GREEN PIPE 612.4610.5610 ICONIX WATERWORKS (US) INC

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CITY OF ARROYO GRANDE

CHECK LISTING
AUGUST 16 - AUGUST 31, 2022
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name41 08/19/2022 294919 $ 7,090.35 (31) METERBOXES W/LIDS 640.5946.7001 ICONIX WATERWORKS (US) INC42 08/19/2022 294920 13,980.00 COHESITY DATAPROTECT DELIVERED 010.4140.5303 ITSAVVY LLC43 08/19/2022 294921 710.00 CASH FOR GRASS- 710 SQFT 226.4306.5554 CATHY JORDANO44 08/19/2022 294922 1,294.02 (10) 5 GALL PAINT-SOTO FIELD 010.4430.5605 KELLY-MOORE PAINTS45 08/19/2022 294923 3,333.20 07/22 PROF FEES-HOTEL RFQ 010.0000.2563 KOSMONT & ASSOCIATES INC46 08/19/2022 294924 640.00 08/14 PICKLEBALL CLINIC 010.4424.5351 PRINCESS LEONG47 08/19/2022 294925 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 REBECCA MCKENZIE48 08/19/2022 294926 48.05 T8 FLUORESCENT LIGHTS 010.4213.5604 MINER'S ACE HARDWARE, INC49 08/19/2022 294926 (6.06) CREDIT RETURN 010.4213.5604 MINER'S ACE HARDWARE, INC50 08/19/2022 294926 10.76 DUCT TAPE 220.4303.5613 MINER'S ACE HARDWARE, INC51 08/19/2022 294926 31.42 FASTENERS 010.4430.5605 MINER'S ACE HARDWARE, INC52 08/19/2022 294926 47.70 VARNISH, PAINTBRUSH, LED BULB 010.4213.5604 MINER'S ACE HARDWARE, INC53 08/19/2022 294926 13.99 SANDPAPER 010.4213.5604 MINER'S ACE HARDWARE, INC54 08/19/2022 294926 9.77 (2) BAGS QUICK CRETE 010.4430.5605 MINER'S ACE HARDWARE, INC55 08/19/2022 294926 25.84 (2) BAGS GARDEN SOIL FOR TREES 010.4420.5605 MINER'S ACE HARDWARE, INC56 08/19/2022 294926 25.84 (2) BAGS GARDEN SOIL FOR TREES 010.4420.5605 MINER'S ACE HARDWARE, INC57 08/19/2022 294926 24.75 DUCT TAPE, GRAFITTI REMOVER 010.4213.5604 MINER'S ACE HARDWARE, INC58 08/19/2022 294926 9.70 THIMBLES, FASTENERS, PLASTIC PAIL 010.4420.5605 MINER'S ACE HARDWARE, INC59 08/19/2022 294926 13.55 LINK CHAIN, HOOK 010.4420.5605 MINER'S ACE HARDWARE, INC60 08/19/2022 294926 28.26 PD FLEET MAINT-INFLATOR GUN 010.4203.5601 MINER'S ACE HARDWARE, INC61 08/19/2022 294926 62.46 MARKING PAINT, WAND 220.4303.5613 MINER'S ACE HARDWARE, INC62 08/19/2022 294926 102.14 CLEANER, UTILITY KNIFE, TAPE MEASURE 010.4430.5605 MINER'S ACE HARDWARE, INC63 08/19/2022 294926 18.30 STENCIL, SPRAY PAINT 220.4303.5613 MINER'S ACE HARDWARE, INC64 08/19/2022 294926 69.96 RAID, AERATOR, SCREWDRIVER, CLEANER 010.4213.5604 MINER'S ACE HARDWARE, INC65 08/19/2022 294926 19.37 ANT BAIT 010.4213.5604 MINER'S ACE HARDWARE, INC66 08/19/2022 294926 22.68 GLUE, RESTROOM PLAQUE 010.4213.5604 MINER'S ACE HARDWARE, INC67 08/19/2022 294926 114.16 HEDGE SHEER, BYPASS LOPER, HACKSAWS 010.4420.5605 MINER'S ACE HARDWARE, INC68 08/19/2022 294927 1,665.59 PW-23 NEW ARROW STICK & INSTALLATION 010.4305.5601 NICK'S TELECOM (DBA)69 08/19/2022 294928 9.40 ELECTRIC-484 BAKEMAN 219.4460.5304 PACIFIC GAS & ELECTRIC CO70 08/19/2022 294929 25.50 UNIFORM CLEANING-PD ADMIN 010.4201.5303 PARAMOUNT CLEANERS71 08/19/2022 294929 471.00 UNIFORM CLEANING- PD PATROL 010.4203.5303 PARAMOUNT CLEANERS72 08/19/2022 294929 22.50 UNIFORM CLEANING-PD ADMIN 010.4201.5303 PARAMOUNT CLEANERS73 08/19/2022 294929 392.00 UNIFORM CLEANING-PD PATROL 010.4203.5303 PARAMOUNT CLEANERS74 08/19/2022 294929 44.00 UNIFORM CLEANING-PD SUPPORT SVCS 010.4204.5303 PARAMOUNT CLEANERS75 08/19/2022 294929 55.50 UNIFORM CLEANING-PD SUPPORT SVCS 010.4204.5303 PARAMOUNT CLEANERS76 08/19/2022 294930 558.00 CASH FOR GRASS- 558 SQFT 226.4306.5554 DAVID SANCHEZ77 08/19/2022 294931 6,750.00 STREET SWEEPING JULY-DEC 2022 220.4303.5303 SCA78 08/19/2022 294931 2,250.00 STREET SWEEPING JULY-DEC 2022 010.4307.5303 SCA79 08/19/2022 294932 50.00 PARK DEPOSIT REFUND-RANCHO GRANDE 010.0000.2206 MISTI SIMMS80 08/19/2022 294933 8.23 NDS DRAIN GRATE 010.4420.5605 SITEONE LANDSCAPE SUPPLY LLC

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CITY OF ARROYO GRANDE

CHECK LISTING
AUGUST 16 - AUGUST 31, 2022
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name81 08/19/2022 294933 $ 260.97 (2) 2.5 GALL HERBICIDE 220.4303.5613 SITEONE LANDSCAPE SUPPLY LLC82 08/19/2022 294934 80.10 REFUND OVRPYMT 212 MARIPOSA 010.0000.4181 SLO COUNTY ROOFING83 08/19/2022 294935 15.29 GAS SERVICES-350 S ELM 010.4145.5401 SOCALGAS84 08/19/2022 294935 128.98 GAS SERVICES-1375 ASH ST 010.4145.5401 SOCALGAS85 08/19/2022 294935 52.41 GAS SERVICES-200 N HALCYON 010.4145.5401 SOCALGAS86 08/19/2022 294936 250.00 FACILITY USAGE-SUMMER NEEDLE ARTS 010.4424.5251 ST JOHN'S LUTHERAN CHURCH87 08/19/2022 294937 30.00 ADULT SOFTBALL SCORER- 1 GAME X $15+1 HR ADMIN 010.4424.5352 HEATHER STRAUSBURG88 08/19/2022 294938 486.00 REFUND CIM WEEK 3- 2 CHILDREN 010.0000.4602 MACKENZIE TACKITT89 08/19/2022 294939 231.02 UNIFORMS-BLACK 010.4203.5272 TEMPLETON UNIFORMS90 08/19/2022 294940 100.00 UNIFORMS-NEW HIRE TRAINING SHIRTS 010.4203.5272 THE TOP SHOP91 08/19/2022 294941 124.00 REFUND SOCCER CAMP 010.0000.4605 DEICY TREJO92 08/19/2022 294942 349.97 FILL SAND, CONCRETE RECYCLING 220.4303.5613 TROESH RECYCLING, INC93 08/19/2022 294943 50.00 PARK DEPOSIT REFUND-ELM ST 010.0000.2206 MARICRUZ VEGA94 08/19/2022 294944 936.24 ACCT#208620661-00002- PD CELL 010.4201.5403 VERIZON WIRELESS95 08/19/2022 294944 942.62 ACCT#208620661-00002 PD CELL P 010.4201.5403 VERIZON WIRELESS96 08/19/2022 294945 28,569.62 06/22 TMD ASSESSMENT REMITTANCE 761.0000.2007 VISIT SLO CAL97 08/19/2022 294945 (571.39) 06/22 CITY ADMIN FEE 010.0000.4771 VISIT SLO CAL98 08/19/2022 294946 405.00 W/O 3452 R & R GRAND AT PED CROSSING 220.4303.5303 LEE WILSON ELECTRIC COMPANY INC99 08/19/2022 294947 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 SHERRIE WORRELL100 08/19/2022 294948 4,732.00 YOUTH BASKETBALL CAMPS SESSION 3 & 4 010.4424.5351 YOUTH EVOLUTION BASKETBALL101 08/19/2022 294948 2,240.00 YOUTH BASKETBALL CAMP SESSION 2 010.4424.5351 YOUTH EVOLUTION BASKETBALL102 08/19/2022 294949 74.28 UB Refund Cst #00026585 640.0000.2301 STEPHANIE BARCLAY103 08/19/2022 294950 72.69 UB Refund Cst #00026379 640.0000.2301 BRICE MOODY104 08/19/2022 294951 6.95 UB Refund Cst #00002294 640.0000.2301 RITA RODRIGUEZ105 08/19/2022 294952 24.27 UB Refund Cst #00028084 640.0000.2301 SCOTT SHANKLAND106 08/19/2022 294953 4,358.00 UNEMPLOYMENT-2 CLAIMANTS 010.4919.5142 CA ST EMPLOYMENT DEVEL DEPT107 08/26/2022 294954 24.18 AFLAC AFTER TAX: Payment 011.0000.2126 AFLAC INSURANCE108 08/26/2022 294954 814.78 AFLAC PRE TAX: Payment 011.0000.2126 AFLAC INSURANCE109 08/26/2022 294955 3,153.50 POLICE DEPT DUES: Payment 011.0000.2116 ARROYO GRANDE POLICE ASSN110 08/26/2022 294956 51,648.36 FEDERAL WITHHOLDING: Payment 011.0000.2104 CITY OF ARROYO GRANDE111 08/26/2022 294956 53,276.78 SOCIAL SECURITY: Payment 011.0000.2105 CITY OF ARROYO GRANDE112 08/26/2022 294956 13,133.56 MEDICARE: Payment 011.0000.2105 CITY OF ARROYO GRANDE113 08/26/2022 294957 2,506.23 CASDI: Payment 011.0000.2111 CA ST EMPLOYMENT DEVEL DEPT114 08/26/2022 294957 20,603.39 STATE WITHHOLDING: Payment 011.0000.2108 CA ST EMPLOYMENT DEVEL DEPT115 08/26/2022 294958 565.60 DEPT OF CHILD SUPPORT SERVICES: Payment 011.0000.2114 CA STATE DISBURSEMENT UNIT116 08/26/2022 294959 3,360.00 AG CAREER FIREFIGHTERS ASSN: Payment 011.0000.2115 FIVE CITIES PROF. FIREFIGHTERS117 08/26/2022 294960 3,556.65 DEFERRED COMPENSATION - EE %: Payment 011.0000.2117 ICMA RETIREMENT CORP118 08/26/2022 294960 11,843.59 DEFERRED COMPENSATION - EE: Payment 011.0000.2117 ICMA RETIREMENT CORP119 08/26/2022 294960 275.00 ROTH - AFTER TAX: Payment 011.0000.2117 ICMA RETIREMENT CORP120 08/26/2022 294960 816.66 DEFERRED COMPENSATION - ER: Payment 011.0000.2117 ICMA RETIREMENT CORP

Page 14 of 514 ends

CITY OF ARROYO GRANDE

CHECK LISTING
AUGUST 16 - AUGUST 31, 2022
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name121 08/26/2022 294961 $ 62.80 PRE-PAID LEGAL SERVICES: Payment 011.0000.2125 LEGALSHIELD122 08/26/2022 294962 33,558.86 PERS RETIREMENT: Payment 011.0000.2106 PERS - RETIREMENT123 08/26/2022 294962 44,918.93 PERS RETIREMENT: Payment 011.0000.2106 PERS - RETIREMENT124 08/26/2022 294962 117.11 PERS BUYBACK - AFTER TAX: Payment 011.0000.2106 PERS - RETIREMENT125 08/26/2022 294962 1,178.02 PERS Employer Pick Up: Payment 011.0000.2106 PERS - RETIREMENT126 08/26/2022 294962 259.69 PERS BUYBACK - PRE TAX: Payment 011.0000.2106 PERS - RETIREMENT127 08/26/2022 294962 (0.06) ROUNDING DIFFERENCE 010.0000.4818 PERS - RETIREMENT128 08/26/2022 294963 1,178.56 SEIU DUES: Payment 011.0000.2118 S.E.I.U. LOCAL 620129 08/26/2022 294964 1,279.76 PARS: Payment 011.0000.2107 US BANK OF CALIFORNIA130 08/26/2022 294965 900.00 08/28 SUMMER CONCERT SERIES SOUND 010.4421.5504 ADEPT EVENTS LLC131 08/26/2022 294966 248.00 REFUND SPECIAL EVENT FEE 010.0000.4354 AGVIA132 08/26/2022 294966 50.00 PARK DEPOSIT REFUND-HERITAGE SQUARE 010.0000.2206 AGVIA133 08/26/2022 294966 120.00 PARK RENTAL REFUND-HERITAGE SQUARE 010.0000.4354 AGVIA134 08/26/2022 294966 50.00 PARK DEPOSIT REFUND-HERITAGE SQUARE 010.0000.2206 AGVIA135 08/26/2022 294967 50.00 PARK DEPOSIT REFUND-ELM ST 010.0000.2206 GRISEL ALCANTAR136 08/26/2022 294968 35.43 OFFICE SUPPLIES-SHIPPING LABEL 010.4212.5201 AMAZON CAPITAL SERVICES137 08/26/2022 294969 1,960.00 REPLACEMENT SIGN FOR ELM AND ASH ST 010.4430.5255 AVILA SIGN & DESIGN (DBA)138 08/26/2022 294969 1,960.00 REPLACEMENT SIGN FOR ELM AND ASH ST 010.4420.5255 AVILA SIGN & DESIGN (DBA)139 08/26/2022 294970 1,600.00 CASH FOR GRASS-1600 SQFT 226.4306.5554 CHARLES BARSTOW140 08/26/2022 294971 220.00 PW-27 OIL CHG 220.4303.5601 BOYER'S DIESEL141 08/26/2022 294971 365.00 PW-41 OIL CHG 220.4303.5601 BOYER'S DIESEL142 08/26/2022 294972 44,314.18 06/22 BLDG DEPT SVCS 010.4212.5303 BPR CONSULTING GROUP LLC143 08/26/2022 294973 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 DIANE BREBES144 08/26/2022 294974 500.00 JANITORIAL SERVICE FOR THE POLICE DEPARTMENT 010.4201.5615 BRENDLER JANITORIAL SERVICE145 08/26/2022 294974 1,135.00 JANITORIAL SERVICE FOR VARIOUS CITY BUILDINGS 010.4213.5615 BRENDLER JANITORIAL SERVICE146 08/26/2022 294975 2,793.00 (10) ACCU-TABS 600 LBS 640.4712.5274 BRENNTAG PACIFIC INC147 08/26/2022 294975 893.96 240 GALL HYPOCHLORITE 640.4712.5274 BRENNTAG PACIFIC INC148 08/26/2022 294976 200.00 REIMBURSEMENT FOR WORK BOOTS 640.4712.5148 BROOKS149 08/26/2022 294977 133.21 (2000) SERVICE REQUESTS 640.4710.5201 BURDINE PRINTING (DBA)150 08/26/2022 294977 102.36 PARKS & REC LABELS 010.4421.5504 BURDINE PRINTING (DBA)151 08/26/2022 294978 50.00 REFUND PARK DEPOSIT-HERITAGE SQUARE 010.0000.2206 CALVARY CHAPEL152 08/26/2022 294979 26.68 PW-14 WIPER BLADES 640.4712.5601 CARQUEST AUTO PARTS153 08/26/2022 294979 19.21 AIR FRESHENERS FOR CITY TRUCKS 010.4305.5255 CARQUEST AUTO PARTS154 08/26/2022 294979 20.66 PW-15 TOGGLE SWITCH 220.4303.5601 CARQUEST AUTO PARTS155 08/26/2022 294979 9.61 PW-41 FUEL FILTER 220.4303.5601 CARQUEST AUTO PARTS156 08/26/2022 294980 200.00 REIMBURSEMENT FOR WORK BOOTS 640.4712.5148 DEAN CASCIOLA157 08/26/2022 294981 200.00 REFUND DEPOSIT WOMENS CLUB 010.0000.2206 GELACIO CATALAN158 08/26/2022 294981 800.00 REFUND DEPOSIT WOMENS CLUB 010.0000.2206 GELACIO CATALAN159 08/26/2022 294982 100.00 PARK DEPOSIT REFUND-STROTHER # 2 & 3 010.0000.2206 JESSA CRABTREE160 08/26/2022 294983 338.46 KYOCERA COPIER LEASE 010.4421.5602 DE LAGE LANDEN FINANCIAL SVCS

Page 15 of 514 ends

CITY OF ARROYO GRANDE

CHECK LISTING
AUGUST 16 - AUGUST 31, 2022
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name161 08/26/2022 294984 $ 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 SUZANNE DUNN162 08/26/2022 294985 75.00 PAS CLASS-POST PER DIEM (1 X $75) 010.4209.5501 ALEJANDRO ESTRADA163 08/26/2022 294986 800.00 08/28/22 SUMMER CONCERT SERIES 010.4421.5504 VANCE FAHIE164 08/26/2022 294987 74.02 RISER EXTENSIONS-SOTO 010.4430.5605 FARM SUPPLY CO165 08/26/2022 294988 905.38 TOILET PAPER 010.4420.5605 FASTENAL COMPANY166 08/26/2022 294989 272.81 (12) MASTER LOCKS-PARKS 010.4420.5605 FRANK'S LOCK & KEY167 08/26/2022 294989 120.00 (6) MASTER LOCKS-SOTO 010.4430.5605 FRANK'S LOCK & KEY168 08/26/2022 294990 75.00 PAS CLASS-POST PER DIEM (1 X $75) 010.4209.5501 CHAD GIESMANN169 08/26/2022 294991 200.00 REFUND DEPOSIT-WOMENS CLUB 010.0000.2206 JORGE GONZALEZ170 08/26/2022 294991 800.00 REFUND DEPOSIT -WOMENS CLUB 010.0000.2206 JORGE GONZALEZ171 08/26/2022 294992 429.35 PREPARE 2021 ANNUAL REPORT 640.4710.5303 GSI WATER SOLUTIONS172 08/26/2022 294993 50.00 PARK DEPOSIT REFUND-ELM ST 010.0000.2206 LUCIANA GUTIERREZ173 08/26/2022 294994 144.00 REFUND FALL PRESCHOOL T/TH 010.0000.4603 ANNA HANADA174 08/26/2022 294995 50.00 PARK DEPOSIT REFUND-RANCHO GRANDE 010.0000.2206 MICHAEL HANLEY175 08/26/2022 294996 191.00 REFUND PRESCHOOL FALL SESSION 010.0000.4603 PAULINA HOULDSWROTH176 08/26/2022 294997 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 DIANA JACOBO177 08/26/2022 294998 1,977.50 ART CAMPS-JULY & AUGUST 010.4424.5351 LYNNE LANE178 08/26/2022 294999 40.85 REFUND PARK DEPOSIT--STROTHER 010.0000.2206 LINDSAY LIGON179 08/26/2022 294999 84.15 REFUND PARK RENTAL -STROTHER 010.0000.4354 LINDSAY LIGON180 08/26/2022 294999 28.00 REFUND-USER CREDIT 010.0000.4605 LINDSAY LIGON181 08/26/2022 295000 900.00 SEWER MAIN VIDEO INSPECTION 612.4610.5610 MAINLINE UTILITY COMPANY182 08/26/2022 295001 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 RIANNA MALHERBE183 08/26/2022 295002 81.50 PAINT-AIR/VAC ENCLOSURE 640.4712.5610 MINER'S ACE HARDWARE, INC184 08/26/2022 295002 25.84 (2) BAGS TREE & SHRUB SOIL 010.4420.5605 MINER'S ACE HARDWARE, INC185 08/26/2022 295002 50.70 TAPE, PAINT CABLETIES, PLYWOOD 010.4213.5604 MINER'S ACE HARDWARE, INC186 08/26/2022 295002 25.83 CAULK GUN, ADHESIVE 220.4303.5613 MINER'S ACE HARDWARE, INC187 08/26/2022 295003 900.00 ONGOING MAP CHECKING SERVICES 010.4301.5303 MNS ENGINEERS INC188 08/26/2022 295004 300.00 PW-16 RESURFACE ROTORS 220.4303.5601 MULLAHEY FORD189 08/26/2022 295005 58.34 OFFICE SUPPLIES 010.4421.5201 ODP BUSINESS SOLUTIONS LLC190 08/26/2022 295005 65.95 OFFICE SUPPLIES 010.4421.5201 ODP BUSINESS SOLUTIONS LLC191 08/26/2022 295006 195.00 SERVICE CALL-COLOR PRINTER 010.4421.5602 OFFICE1192 08/26/2022 295007 58.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 MELISSA ORTIZ193 08/26/2022 295007 (8.00) CORRECT ACCT-WRONG AMT POSTED 010.0000.4354 MELISSA ORTIZ194 08/26/2022 295008 35.41 ELECTRIC-WELL#11 352 LA CANADA 640.4711.5402 PACIFIC GAS & ELECTRIC CO195 08/26/2022 295009 133.00 REFUND FALL PRESCHOOL T/TH 010.0000.4603 JAY PANCHAL196 08/26/2022 295010 50.00 PARK DEPOSIT REFUND-ELM ST 010.0000.2206 ANASTASHA PAOLILLO197 08/26/2022 295010 (26.00) BOUNCE HOUSE FEE 010.0000.4354 ANASTASHA PAOLILLO198 08/26/2022 295011 18,157.50 MATERIALS TESTING FOR 2021 STREET REPAIR 350.5638.7401 PAVEMENT ENGINEERING INC199 08/26/2022 295011 6,800.00 MATERIALS TESTING FOR 2021 STREET REPAIR 350.5638.7401 PAVEMENT ENGINEERING INC200 08/26/2022 295011 12,915.00 AMENDMENT #1 - ADDITIONAL DAYS 350.5638.7401 PAVEMENT ENGINEERING INC

Page 16 of 514 ends

CITY OF ARROYO GRANDE

CHECK LISTING
AUGUST 16 - AUGUST 31, 2022
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name201 08/26/2022 295012 $ 56.00 PRIVATE TENNIS LESSONS 010.4424.5351 SUZANNE M PETRIE202 08/26/2022 295013 14,761.60 TRAFFIC WAY BRIDGE REPLACEMENT 350.5679.7501 QUINCY ENGINEERING INC203 08/26/2022 295014 93.00 PARK RENTAL REFUND-LESS ADMIN 010.0000.4354 MYKEL RANGEL204 08/26/2022 295014 50.00 PARK DEPOSIT REFUND-RANCHO GRANDE 010.0000.2206 MYKEL RANGEL205 08/26/2022 295015 5.38 COUNCIL CHAMBERS WATER 010.4213.5303 READYREFRESH BY NESTLE206 08/26/2022 295016 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 CHANTEL REYES207 08/26/2022 295016 103.00 PARK RENTAL REFUND-STROTHER 010.0000.4354 CHANTEL REYES208 08/26/2022 295016 150.00 PARK DEPOSIT REFUND-RANCHO GRANDE 010.0000.2206 CHANTEL REYES209 08/26/2022 295016 116.00 REFUND PARK RENTAL-RANCHO GRANDE 010.0000.4354 CHANTEL REYES210 08/26/2022 295017 50.00 PARK DEPOSIT REFUND-RANCHO GRANDE 010.0000.2206 RACHELLE ROMERO211 08/26/2022 295018 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 JOE ROULEAU212 08/26/2022 295019 50.00 PARK DEPOSIT REFUND-RANCHO GRANDE 010.0000.2206 BRIAN SCHWARTZENBACH213 08/26/2022 295020 4,233.60 SCIENCE DIPPITY SUMMER SESSION 8/8-8/12 010.4424.5351 SCIENCE DIPPITY INC214 08/26/2022 295021 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 KAY SHISHIDO215 08/26/2022 295022 657.36 SUPPLIES-MAYORS MEETING 010.4001.5201 U.S. BANK216 08/26/2022 295022 114.10 TRADER JOES-MAYOR'S MEETING 010.4001.5501 U.S. BANK217 08/26/2022 295022 1,023.63 (2) VARIDESK 010.4002.5201 U.S. BANK218 08/26/2022 295022 115.00 PAYPAL-PUBLIC SECTOR EXCELLENCE 010.4002.5501 U.S. BANK219 08/26/2022 295022 199.00 DROPBOX SUBSCRIPTION 010.4002.5503 U.S. BANK220 08/26/2022 295022 280.11 MINERS-OFFICE SUPPLIES-UMBRELLAS 010.4101.5201 U.S. BANK221 08/26/2022 295022 445.00 TRAINING-EXECUTIVE RETREAT 010.4101.5501 U.S. BANK222 08/26/2022 295022 19.38 OFFICE SUPPLIES-AMAZON 010.4120.5201 U.S. BANK223 08/26/2022 295022 528.85 ZOOM 010.4140.5303 U.S. BANK224 08/26/2022 295022 899.98 GO DADDY SSL CERTIFICATIONS 010.4140.5303 U.S. BANK225 08/26/2022 295022 397.60 APC BATTERY-IT SAVVY 010.4140.5602 U.S. BANK226 08/26/2022 295022 155.18 OFFICE SUPPLIES 010.4201.5201 U.S. BANK227 08/26/2022 295022 110.54 EMPLOYEE RECOGNITION 010.4201.5504 U.S. BANK228 08/26/2022 295022 480.23 SUMMER CONCERT SERIES SUPPLIES 010.4421.5504 U.S. BANK229 08/26/2022 295022 515.00 NEW TIMES AD 010.4421.5504 U.S. BANK230 08/26/2022 295022 48.08 JOANN FABRICS-SUPPLIES FOR STARRY NIGHT DANCE 010.4424.5252 U.S. BANK231 08/26/2022 295022 (19.38) TARGET RETURN 010.4424.5252 U.S. BANK232 08/26/2022 295022 581.50 STARRY NIGHT DANCE SUPPLIES 010.4424.5252 U.S. BANK233 08/26/2022 295022 86.05 AMAZON-STARRY NIGHT SUPPLIES 010.4424.5252 U.S. BANK234 08/26/2022 295022 83.22 BRAND CREATIVE-PICKLEBALL BANNER 010.4424.5351 U.S. BANK235 08/26/2022 295022 585.00 CPRS RENEWAL 010.4424.5353 U.S. BANK236 08/26/2022 295022 61.69 RITE AID-ICE CREAM FOR CIM FIELD TRIP 010.4425.5259 U.S. BANK237 08/26/2022 295022 12.36 FOOD 4 LESS-WATER CIM HIKE 010.4425.5259 U.S. BANK238 08/26/2022 295022 263.79 SNACK SUPPLIES 010.4425.5259 U.S. BANK239 08/26/2022 295022 380.00 CONTRACT SERVICES 010.4425.5303 U.S. BANK240 08/26/2022 295022 451.13 SOTO POLARIS- FUEL PUMP, AIR FILTER 010.4430.5603 U.S. BANK

Page 17 of 514 ends

CITY OF ARROYO GRANDE

CHECK LISTING
AUGUST 16 - AUGUST 31, 2022
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name241 08/26/2022 295022 $ 64.32 CHARGER FOR LAPTOP 640.4710.5201 U.S. BANK242 08/26/2022 295022 49.98 TRAINING CLASS-HANSON 640.4712.5501 U.S. BANK243 08/26/2022 295022 37.90 POSTAGE 010.4201.5208 U.S. BANK244 08/26/2022 295022 373.99 (100) SHOWER TIMERS 226.4306.5201 U.S. BANK245 08/26/2022 295022 418.76 TRAINING OTS-LODGING 010.4209.5501 U.S. BANK246 08/26/2022 295022 (241.36) CREDIT REFUND 511 TACTICAL 010.4203.5272 U.S. BANK247 08/26/2022 295022 1,184.18 PATROL EQUIPMENT 010.4203.5272 U.S. BANK248 08/26/2022 295022 308.32 UNIFORMS/EQUIPMENT 010.4203.5272 U.S. BANK249 08/26/2022 295022 63.85 UNIFORMS 010.4203.5272 U.S. BANK250 08/26/2022 295022 978.50 TRAINING-REGISTRATION TUITION-RAMIREZ 010.4203.5501 U.S. BANK251 08/26/2022 295022 204.97 TRAINING-LODGING 010.4203.5501 U.S. BANK252 08/26/2022 295022 750.00 TRAINING TUITION-FIREARMS INSTRUCTOR 010.4203.5501 U.S. BANK253 08/26/2022 295022 697.75 FLEET-MOTOR UPLIFTING 010.4203.5601 U.S. BANK254 08/26/2022 295022 2,103.74 FLEET-MOTOR WRAP, REPLACE WRAP 010.4203.5601 U.S. BANK255 08/26/2022 295022 169.21 FUEL 010.4203.5608 U.S. BANK256 08/26/2022 295022 102.89 FUEL 010.4203.5608 U.S. BANK257 08/26/2022 295022 88.24 FUEL 010.4203.5608 U.S. BANK258 08/26/2022 295022 602.00 CONTRACT SERVICES 010.4425.5303 U.S. BANK259 08/26/2022 295022 125.00 ABPA-TEST& APPLICATION COST 010.4420.5501 U.S. BANK260 08/26/2022 295022 175.91 SCHOOL YEAR SUPPLIES 010.4425.5255 U.S. BANK261 08/26/2022 295022 57.04 WALMART-WALL CLOCK & BATTERIES 010.4213.5604 U.S. BANK262 08/26/2022 295022 129.30 EBAY- GLASSES- REIMBURSED BY EMPLOYEE 010.4213.5604 U.S. BANK263 08/26/2022 295022 173.75 SNACK SUPPLIES 010.4425.5259 U.S. BANK264 08/26/2022 295022 201.95 PRESCHOOL SUPPLIES 010.4423.5253 U.S. BANK265 08/26/2022 295022 39.98 TRAINING-GALLUP 010.4002.5503 U.S. BANK266 08/26/2022 295022 13.54 SMART & FINAL-ART CLASS RECEPTION 010.4424.5251 U.S. BANK267 08/26/2022 295022 350.00 CONTRACT SVCS-RECORDS DESTRUCTION 010.4002.5303 U.S. BANK268 08/26/2022 295022 121.99 INTOXIMETERS 010.4203.5255 U.S. BANK269 08/26/2022 295022 115.00 MEMBERSHIP IIMC ANNUAL RENEWAL 010.4002.5503 U.S. BANK270 08/26/2022 295022 50.00 PAYPAL IIMC TRAINING 010.4002.5501 U.S. BANK271 08/26/2022 295022 19.99 DRI GALLUP -TRAINING 010.4002.5501 U.S. BANK272 08/26/2022 295022 211.98 CENTRAL MKT-PW ALL STAFF MTG FOOD/SUPPLIES 010.4307.5501 U.S. BANK273 08/26/2022 295022 85.48 MCA DIRECT-ELECTION SUPPLIES 010.4002.5201 U.S. BANK274 08/26/2022 295022 34.76 AMAZON-ELECTRON SUPPLIES 010.4002.5201 U.S. BANK275 08/26/2022 295022 30.00 MULE BAKERY-MEETING SUPPLIES 010.4002.5201 U.S. BANK276 08/26/2022 295022 53.10 AUTHORIZE.NET CC FEE 010.4145.5555 U.S. BANK277 08/26/2022 295022 450.00 TRAINING TUITION REGISTRATION 010.4203.5501 U.S. BANK278 08/26/2022 295022 30.00 TRAINING-TRAVEL 010.4201.5501 U.S. BANK279 08/26/2022 295022 1,345.24 LOWES-WOMENS CLUB FRENCH DOORS 350.5463.7001 U.S. BANK280 08/26/2022 295022 30.17 CDD SURFACE ADAPTER 010.4140.5602 U.S. BANK

Page 18 of 514 ends

CITY OF ARROYO GRANDE

CHECK LISTING
AUGUST 16 - AUGUST 31, 2022
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name281 08/26/2022 295022 $ 122.65 COMMUNITY RELATIONS-HEFFER DUST 010.4201.5504 U.S. BANK282 08/26/2022 295022 14.86 OFFICE SUPPLIES 010.4201.5201 U.S. BANK283 08/26/2022 295022 169.04 BRAND CREATIVE-UNIFORM SHIRTS 010.4307.5201 U.S. BANK284 08/26/2022 295022 35.00 S COUNTY CHAMBER B'FAST MEETING-MCDONALD 010.4101.5501 U.S. BANK285 08/26/2022 295022 145.00 INT'L CODE COUNCIL SUBSCRIPTION 010.4130.5503 U.S. BANK286 08/26/2022 295022 25.00 TRIBE-VOLUNTEER THANK YOU 010.4424.5250 U.S. BANK287 08/26/2022 295022 40.00 EMPLOYEE RECOGNITION-MADD 010.4201.5504 U.S. BANK288 08/26/2022 295022 1,078.00 BALLISTIC HELMETS FOR NEW HIRES 010.4203.5272 U.S. BANK289 08/26/2022 295022 2.50 UNIFORMS/EQUIPMENT 010.4203.5272 U.S. BANK290 08/26/2022 295022 1,282.06 UNIFORMS/EQUIPMENT 010.4201.5272 U.S. BANK291 08/26/2022 295022 107.19 FUEL 010.4204.5608 U.S. BANK292 08/26/2022 295023 2,125.00 07/22 PROF SVCS-SUCCESSOR AGENCY 286.4103.5303 URBAN FUTURES, INC293 08/26/2022 295024 2,121.47 WALLACE STORMWATER MGMT 010.4301.5303 WALLACE GROUP A CALIF CORP294 08/26/2022 295025 806.78 NCMA STAFF EXTENSION SERVICES 640.4710.5303 WATER SYSTEMS CONSULTING INC295 08/26/2022 295026 50.00 PARK DEPOSIT REFUND-RANCHO GRANDE 010.0000.2206 SUSAN WILLIAMS296 08/26/2022 295027 210,000.00 RDA TAB BONDS-PRINCIPAL 286.0000.2659 WELLS FARGO BANK297 08/26/2022 295027 89,840.15 RDA TAB BONDS-INTEREST 286.4103.5802 WELLS FARGO BANK $ 824,557.50

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ATTACHMENT 2
.

General Fund 339,884.87 5101 Salaries Full time 225,259.91 Streets Fund 16,240.63 5101 Volunteer Employee Retirement - American Rescue Plan Act 7,215.32 5102 Salaries Part-Time - PPT 2,470.14 Sewer Fund 9,468.03 5103 Salaries Part-Time - TPT 12,573.82 Water Fund 23,302.46 5105 Salaries OverTime 19,192.20
396,111.31 5106 Salaries Strike Team OT -
5107 Salaries Standby 1,676.90
5108 Holiday Pay 742.86
5109 Sick Pay 12,562.54
5110 Annual Leave Buyback -
Administrative Services - 5111 Vacation Buyback -
Information Services - 5112 Sick Leave Buyback -
Community Development - 5113 Vacation Pay 7,339.20
Police 17,996.51 5114 Comp Pay 4,318.06
Public Works - Maintenance 409.03 5115 Annual Leave Pay 3,885.41 Public Works - Enterprise 786.66 5116 Salaries - Police FTO 348.19 Recreation - Administration - 5121 PERS Retirement 28,842.07 Recreation - Special Events - 5122 Social Security 21,263.50 Children In Motion - 5123 PARS Retirement 244.55
5126 State Disability Ins. 1,088.75 19,192.20
5127 Deferred Compensation 691.66
5131 Health Insurance 46,841.21
5132 Dental Insurance 2,944.82
5133 Vision Insurance 743.70
5134 Life Insurance 385.52
5135 Long Term Disability 603.42
5137 Leave Payouts -
5142 Unemployment Insurance -
5143 Uniform Allowance -
5144 Car Allowance 837.50
5146 Council Expense -
5147 Employee Assistance -
5148 Boot Allowance -
5149 Motor Pay 70.38
5150 Bi-Lingual Pay 150.00
5151 Cell Phone Allowance 1,035.00
396,111.31
OVERTIME BY DEPARTMENT:

Total FCFA payroll cost for this period is $210,256.16. FCFA payroll and accounts payable expenditures are processed as part of the JPA financial services agreement between Arroyo Grande, Grover Beach and Oceano Community Services District. Arroyo Grande's portion of the FCFA annual budget is identified in the contractual services budget.

CITY OF ARROYO GRANDE

DEPARTMENTAL LABOR DISTRIBUTION

PAY PERIOD
08/05/2022 - 08/18/2022
8/26/2022

BY FUND BY ACCOUNT

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Item 8.b.

MEMORANDUM
TO: City Council
FROM: Whitney McDonald, City Manager
Timothy J. Carmel, City Attorney
SUBJECT: Consideration to Adopt a Resolution Declaring a Continued Local Emergency Related to the COVID-19 Pandemic and Authorizing the Continuance of Remote Teleconference Meetings of the Legislative Bodies Pursuant to Government Code Section 54953(e)(3)
DATE: September 27, 2022
SUMMARY OF ACTION:

Adoption of the Resolution will continue the declared local emergency related to the COVID-19 pandemic and will also enable the City to continue to comply with the requirements of legislation, AB 361, to authorize the continued use of teleconferencing for meetings of the City’s legislative bodies.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

There are no direct fiscal impacts related to the proposed action; however, adoption of the Resolution will facilitate the ability for the City to request resources including financial support and reimbursement from the State Office of Emergency Services and the Federal Emergency Management Agency for costs incurred in preparation and/or response to the COVID-19 pandemic.

RECOMMENDATION:

BACKGROUND:

As the City Council is aware, in accordance with Section 8.12.060 of the Arroyo Grande Municipal Code, the former City Manager, in his capacity as the Director of Emergency Services, proclaimed a local emergency on March 16, 2020, regarding the COVID-19 pandemic. The City Council ratified the proclamation at its regular meeting on March 24, 2020, and adopted resolutions declaring a continued local emergency since that time as the pandemic has persisted.

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Item 8.b.

City Council
Consideration to Adopt a Resolution Declaring a Continued Local Emergency Related to the COVID-19 Pandemic and Authorizing the Continuance of Remote Teleconference Meetings of the Legislative Bodies Pursuant to Government Code Section 54953(e)(3)
September 27, 2022

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In addition, AB 361 amended Government Code Section 54953, adding a new subsection (e) that permits legislative bodies, when there is a proclaimed State of Emergency declared by the Governor pursuant to Government Code Section 8625, to make a determination to authorize meeting remotely via teleconferencing as a result of the emergency. To do so, a resolution would need to be adopted in which the legislative body finds that meeting in person would present imminent risks to the health or safety of attendees, or that State or local officials have imposed or recommended measures to promote social distancing.

The City Council first adopted a Resolution making findings in accordance with AB 361 and Government Code Section 54953(e) at its September 28, 2021 meeting. The Resolution is valid for thirty (30) days after teleconferencing for the first time under the new regulations. If the State of Emergency remains active after that 30 day period, the local agency may act to renew its resolution authorizing remote teleconferenced meetings by passing another resolution which includes findings that the State of Emergency declaration remains active, the local agency has reconsidered the circumstances of the State of Emergency, and the local agency has either identified: A) ongoing, direct impacts to the ability to meet safely in-person, or B) active social distancing measures as directed by relevant State or local officials.

In the past, the City has adopted separate resolutions related to the continuing emergency declaration and the continuance of remote teleconference meetings pursuant to Government Code Section 54953(e)(3). Staff has combined the two items into one resolution to eliminate the need for separate agenda items.

ANALYSIS OF ISSUES:

Arroyo Grande Municipal Code Section 8.12.065(C) provides that the City Council is to “Review the need for a continuing emergency declaration at regularly scheduled meetings at least every twenty-one (21) days until the emergency is terminated.” Accordingly, the City Council has adopted the appropriate Resolutions declaring a continued local emergency related to the COVID-19 pandemic within the required 21-day time period since the ratification of the proclamation at its March 24, 2020 meeting.

This item is being presented to the City Council to satisfy the requirements of Section

8.12.065(C) given the ongoing State of Emergency proclaimed by the Governor, the ongoing public health orders issued by the State, and the ongoing work required of City staff to respond to the pandemic and these proclamations and orders. In addition, the Resolution will allow the City to continue conducting its public meetings via teleconference. The Resolution includes continued findings based upon a determination that, as a result of the proclaimed State of Emergency in California due to the COVID-19 pandemic and its continued spread in San Luis Obispo County and Arroyo Grande

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Item 8.b.

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through the Omicron, BA2 and other variants of SARS-CoV-2, which are far more transmissible than prior variants of the virus and, as even fully vaccinated individuals can spread the virus to others, holding meetings in person would present imminent risks to the health or safety of attendees.

While the Resolution provides authority for the City to continue conducting public meetings remotely for the next thirty (30) days, the City has also determined to resume meetings in-person prior to the expiration of that thirty-day period, and conducted the City Council meetings beginning on March 8, 2022, as in-person meetings at Council Chambers while also retaining an option for the public, staff, and consultants to participate via Zoom. It is recommended that the proposed Resolution be adopted to continue to provide flexibility for future meetings of the City Council and its advisory bodies in the event that guidance from the State or County Health Officers changes within the next thirty (30) days. This flexibility will also allow members of the City Council or advisory bodies to attend meetings remotely if they also desire or if they are required to quarantine due to exposure to COVID-19.

Based upon the foregoing, it is recommended that the City Council adopt the Resolution declaring the need to continue the emergency declaration and also authorizing the continuance of remote teleconference meetings pursuant to Government Code Section 54953(e)(3).

ALTERNATIVES:

The following alternatives are provided for the Council’s consideration:

1. Adopt the Resolution declaring the need to continue the declared local emergency and authorizing the continuance of remote teleconference meetings;

2. Do not adopt the Resolution; or

3. Provide other direction to staff.

ADVANTAGES:

Adoption of the Resolution will satisfy the requirement of the Arroyo Grande Municipal Code regarding the periodic review of the declared local emergency related to the COVID19 pandemic. It will also satisfy the requirements of Government Code Section 54953(e)(3) and allow the City to safely continue carrying out its business in a manner that will minimize the risk of contracting COVID-19 for everyone involved.

DISADVANTAGES:

No disadvantages have been identified to adopting the Resolution.

ENVIRONMENTAL REVIEW:

No environmental review is required for this item.

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Item 8.b.

Page 4 ends

PUBLIC NOTIFICATION AND COMMENTS:

The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2.

Attachments:

1. Proposed Resolution

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ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE DECLARING A CONTINUED LOCAL
EMERGENCY RELATED TO THE CORONAVIRUS (COVID19) PANDEMIC AND AUTHORIZING THE CONTINUANCE

OF REMOTE TELECONFERENCE MEETINGS OF THE

LEGISLATIVE BODIES OF THE CITY OF ARROYO

GRANDE PURSUANT TO GOVERNMENT CODE SECTION
54953(e)
WHEREAS, in accordance with Section 8.12.060 of the Arroyo Grande Municipal Code, the former City Manager, in his capacity as the Director of Emergency Services proclaimed a local emergency on March 17, 2020, regarding the COVID-19 pandemic; and
WHEREAS, the City Council ratified the emergency proclamation through adoption of Resolution No. 4974 at its regular meeting on March 24, 2020; and WHEREAS, Arroyo Grande Municipal Code Section 8.12.065(C) provides that the City Council is to review the need for a continuing emergency declaration at regularly scheduled meetings at least every twenty-one (21) days until the emergency is terminated; and
WHEREAS, the City Council has adopted Resolutions declaring a continued local emergency related to the coronavirus (COVID-19) pandemic on April 14, April 28, May 12, May 26, June 9, June 23, July 14, August 11, August 25, September 8, September 22, October 13, October 27, November 10, November 24, December 8, 2020, January 12, January 26, February 9; February 23; March 9, March 23, April 13, April 27, May 11, May 25, June 8, June 22, July 27, August 10, August 24, September 14, September 28, October 12, October 26, November 9, November 23, December 14, 2021, January 11, January 25, February 8, February 22, March 8, March 22, April 12, April 26, May 10, May 24, June 14, June 28, July 26, August 9, August 23, and September 13, 2022; and WHEREAS, the Secretary of Health and Human Services Director issued a Determination that a Public Health Emergency Exists and has existed as of January 27, 2020; and WHEREAS, the President of the United States declared a State of National Emergency; the Governor of the State of California has proclaimed a State of Emergency for the State of California and issued Executive Orders and direction regarding measures to mitigate the spread of cases of COVID-19 within the State of California and all recitals set forth therein, are included as though fully set forth herein; and WHEREAS, subsequently, in March 2020, in response to the COVID-19 pandemic, Governor Newsom issued Executive Orders N-25-20 and N-29-20. These orders suspended certain elements of the Brown Act and specifically allowed for legislative

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RESOLUTION NO.

PAGE 2
bodies as defined by the Brown Act to hold their meetings entirely electronically with no physical meeting place. On June 11, 2021, Governor Newsom issued Executive Order N08-21 which provided that the provisions in Executive Order N-29-20 suspending certain elements of the Brown Act would continue to apply through September 30, 2021; and WHEREAS, on September 16, 2021 Governor Newsom signed AB 361, which added subsection (e) to Government Code section 54953 of the Brown Act, and makes provision for remote teleconferencing participation in meetings by members of a legislative body, without compliance with the requirements of Government Code section 54953(b)(3), subject to the existence of certain conditions; and
WHEREAS, a required condition of AB 361 is that a state of emergency is declared by the Governor pursuant to Government Code section 8625, proclaiming the existence of conditions of disaster or of extreme peril to the safety of persons and property within the State caused by conditions as described in Government Code section 8558; and WHEREAS, the City Council has adopted a Resolution making findings in accordance with AB 361 and Government Code Section 54953(e) authorizing remote teleconference meetings on September 28, October 26, November 23, and December 14, 2021, and on January 25, February 22, March 22, April 12, May 10, June 14, June 28, and July 26, 2022; and
WHEREAS, the COVID-19 pandemic continues to spread rapidly worldwide and in the U.S., continuing to present an immediate and significant risk to public health and safety, and resulting in serious illness or death to vulnerable populations, including the elderly and those with underlying health conditions.

NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Arroyo Grande that:

1. All recitals set forth above, are true, correct and incorporated herein.

2. A local emergency is declared to continue to exist throughout the City of Arroyo Grande, and the City has been undertaking, and will continue through termination of this emergency to undertake necessary measures and incur necessary costs, which are directly related to the prevention of the spread of COVID-19 and are taken in furtherance of: the Secretary of Health and Human Services’ determination that a public health emergency has existed since January 27, 2020; the Governor’s Proclamation of a State of Emergency on March 4, 2020; the President of the United States’ Declaration of a National Emergency on March 13, 2020 and the City Director of Emergency Services’ Proclamation of Local Emergency on March 17, 2020; and related orders and directives.

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RESOLUTION NO.

PAGE 3

3. In accordance with the requirements of Government Code Section 54953(e)(3), the City Council of the City of Arroyo Grande hereby finds and determines that it has reconsidered the circumstances of the State of Emergency and that the State of Emergency continues to exist and to directly impact the ability to meet safely in person due to the COVID-19 pandemic, and its continued spread in San Luis Obispo County and Arroyo Grande through the Omicron,BA2 and other variants of SARS-CoV-2, which are far more transmissible than prior variants of the virus, and can be spread to others even by fully vaccinated individuals, and therefore holding meetings in person would present imminent risks to the health or safety of attendees.

4. The City Manager and legislative bodies of the City of Arroyo Grande are hereby authorized and directed to take all actions necessary to carry out the intent and purpose of this Resolution including, continuing to conduct open and public remote teleconferencing meetings in accordance with the requirements of Government Code section 54953(e) and other applicable provisions of the Brown Act.

5. This Resolution shall take effect immediately upon its adoption and shall be effective for thirty (30) days after its adoption, subject to being extended for an additional 30 day period by the City Council’s adoption of a subsequent resolution in accordance with Government Code section 54953(e)(3) to further extend the time during which the legislative bodies of the City of Arroyo may continue to teleconference without compliance with paragraph (3) of subdivision (b) of Government Code section 54953.

On motion of Council Member , seconded by Council Member , and by the following roll call vote, to wit:

AYES:

NOES:

ABSENT:

The foregoing Resolution was approved this 27
th day of September, 2022.

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RESOLUTION NO.

PAGE 4

CAREN RAY RUSSOM, MAYOR
ATTEST:

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:

WHITNEY MCDONALD, CITY MANAGER
APPROVED AS TO FORM:

TIMOTHY J. CARMEL, CITY ATTORNEY

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Item 8.c.

MEMORANDUM
TO: City Council
FROM: Bill Robeson, Assistant City Manager/Public Works Director BY: Shane Taylor, Utilities Manager
SUBJECT: Consideration of Adoption of a Resolution Approving the Amended and Restated Contract Between San Luis Obispo County Flood Control and Water Conservation District and the City of Arroyo Grande for Water Supply from Lopez Reservoir
DATE: September 27, 2022
SUMMARY OF ACTION:

Adoption of the proposed Resolution will approve the amended and restated contract between San Luis Obispo County Flood Control and Water Conservation District (District) and the City of Arroyo Grande for a water supply from Lopez Reservoir.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

The Fiscal Year 2022-23 budget includes $3,828,355 for the operation and maintenance, and debt service, for the Lopez Project. The amended and restated contract will have no impact on the current City debt obligation to the project. The contract will allow the District to move forward with refunding the bonds associated with the completed Lopez Dam Seismic Retrofit Project, so long as the refunding will not negatively impact the City’s repayment obligations. The refunding process will save an estimated minimum of $50,000/year for the District. The staff time required to administer the contract should be similar to the current contract.

RECOMMENDATION:

Adopt a Resolution approving execution of the amended and restated water supply contract with the San Luis Obispo County Flood Control and Water Conservation District.

BACKGROUND:

The Lopez Water System is comprised of Lopez Dam, Reservoir, water treatment facility, and distribution pipeline. The Lopez Water System supplies water to various south County municipalities via Water Supply Contracts (Contracts) within Zone 3 of the District. The existing Contracts between the District and the Zone 3 Contractors (Contractors) were restated and amended in 2000 from the terms of the original 1966 Contracts in response

Page 29 of 514 ends

Item 8.c.

City Council
Consideration of Adoption of a Resolution Approving the Amended and Restated Contract Between San Luis Obispo County Flood Control and Water Conservation District and the City of Arroyo Grande for Water Supply from Lopez Reservoir September 27, 2022

Page 2 ends

to the need for obtaining bonds for the State-mandated Lopez Dam Seismic Retrofit Project. The Contracts were further amended in 2010 to allow for bond refinancing. The Contracts establish the annual water entitlements for each of the Contractors and downstream releases, which are based on the safe yield of the reservoir and the reservoir capacity.

On August 23, 2022, the San Luis Obispo County Board of Supervisors approved an Amended and Restated Zone 3 Contract. Once all other Zone 3 Contractors, including the City, approve the amended contract, the District will move forward implementing the new contract, including refunding the existing bonds to obtain more favorable terms for the District and the Contractors.

ANALYSIS OF ISSUES:

The Contractors wish to again restate and amend the Contracts to provide storage rights for each of the Contractors to store their unused entitlement, surplus water, and State Water Project water year over year in Lopez Reservoir and to permit the refunding of the bonds associated with the completed Lopez Dam Seismic Retrofit Project in order to reduce the costs of debt service.

The current Contracts operate under a “use it or lose it” principle. If a contractor does not use their annual entitlement of water during the water year, their unused entitlement becomes surplus water that is available for all Contractors to purchase in the following water year. If the surplus water is not used within the following water year, it reverts back to the District, forfeiting the fixed costs paid by the Contractors associated with their full entitlement.

A subcommittee of the Zone 3 Technical Advisory Committee worked to develop the proposed amended and restated contract to improve management of the Lopez Water Supply System. The proposed contract provisions will provide the Contractors with the following management tools:
 The ability for each Contractor to store unused entitlement water, or surplus water, for their use in future years;
 Improve flexibility of multi-year water resource planning;  Allow the Contractors greater opportunities for enhanced conjunctive use (the coordinated use of groundwater and surface water supplies to meet demand) of their water supply portfolios;
 Provide incentives for State Water sub-contractors to import State Water and preserve water in Lopez Lake; and
 The ability of the District to move forward with refunding the bonds associated with the completed Lopez Dam Seismic Retrofit Project to lower costs.

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Item 8.c.

Page 3 ends

Significant Revisions
The following items were modified in the proposed Contract to incorporate language to allow Contractor storage rights, to address re-financing of the Lopez Dam Seismic Retrofit Project bonds, as well as to clarify and modernize the terminology of the Contracts and several of their basic provisions:
 Individual Contractor storage – added (Articles 4, 7, 9, 15, 21) o Provides storage rights to Contractors for unused entitlements. At the end of the water year, the Contractors will have the option to place unused entitlements into the Contractor’s storage account. While Contractors will continue to be required to pay for their full entitlement costs at the beginning of the water year, including operations and maintenance, capital reserve, and debt service costs, the District will issue a credit to the Contractors for the variable costs of any unused water that they placed into storage.

Variable costs are discussed further below and defined in more detail in Article 14. When the stored water is used, the Contractor will pay the variable costs for that water at that time.
o Stored water is subject to evaporation losses, as addressed in Article 7. o Stored water is subject to continuous spillway losses, as described in Articles 4 and 7 and discussed in more detail below.
 Surplus Water cost calculations – modified (Article 4) o Clarifies that Surplus Water is defined as the remaining portion of the annual Safe Yield of the Reservoir after distribution of entitlements, downstream releases, and calculated stored water. Surplus water is offered to Contractors first and may be purchased proportionately to the Contractor’s share of project water.
o The cost of surplus water to Contractors is limited to the variable charge calculated to cover the costs to the District for pumping and chemicals, as described in more detail below.
 Storage of State Water Project Water through in-lieu exchange – added (Article 7) o Allows Contractors to store State Water at Lopez Reservoir through the initiation of an exchange of State Water Project Water for Lopez Water. In these instances, State Water stored through Contractor-initiated exchanges are subject specific water loss events, such as evaporation and spillway losses or force majeure events.
o In the case of a disruption of water delivery, the District may deliver State Water to Contractors in-lieu of Lopez Water.
 Address downstream release obligations – modified (Articles 4, 7, 17) o Unused downstream releases will be declared surplus and then offered up for sale to the Contractors based on entitlement percentages. When this water is stored, the Contractor will pay only the delivery charge that is calculated for that water year when the agency takes delivery of stored water.

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Item 8.c.

Page 4 ends

 Turnout delivery capacity limitations – modified (Article 9)  Variable charges calculation changes – modified (Article 14) o Variable charges will be determined each year by, first, dividing the District’s actual cost of pumping energy and chemical charges during the fiscal year by the total acre-feet of Lopez water delivered to all Contractors and then, second, multiplying this acre-foot charge by the number of acre-feet of Lopez water delivered to the Contractor during that fiscal year.  Bond re-financing legal language – added (Article 34) The new storage provisions incorporated into the revised agreement enable Contractors to store unused allocations of Lopez Project water, as well as exchanged State Water Project Water, indefinitely. The proposed Amended and Restated Agreement does not contain caps or volumetric limits on storage rights but instead allow the Contractors to store unused Lopez Project allocations or exchanged State Water Project Water until continuous spillover occurs, at which point any stored water rights are reduced by the amount of water lost to spillover with stored State Water lost first and stored Lopez Water lost second.

The result of these contract revisions will likely increase the amount of water available within Lopez Reservoir at any given time as Contractors are provided contractual incentives to store rather than use their allocations. This approach will increase water resiliency in times of drought as Contractors will no longer face the need to pay for their entire Lopez Project allocations if they choose to utilize other water sources to meet demand.

ALTERNATIVES:

The following alternatives are provided for the Council’s consideration:

1. Adopt the proposed Resolution to approve the amended and restated contract;

2. Do not adopt the proposed Resolution to approve the amended and restated contract and propose revisions to the contract to be presented for consideration by the Zone 3 Advisory Committee and to the District;

3. Do not adopt the proposed Resolution to approve the amended and restated contract; or

4. Provide other direction to staff.

ADVANTAGES:

Approval and execution of the Amended and Restated Contract is intended to enhance the Contractors’ ability to manage their water supplies, improve multi-year water planning, and provide opportunities to re-finance bonds. These actions will ensure that the water supplies from Lopez Lake are managed in as prudent a manner as possible.

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Item 8.c.

Page 5 ends

DISADVANTAGES:

Increased record keeping, tracking of water storage, evaporation, and variable costs are considerations when stored water is delivered.

ENVIRONMENTAL REVIEW:

A Negative Declaration (ND) for this contract was completed by the District Environmental Division staff, and the Board of Supervisors adopted the ND on August 23, 2022. It is recommended that the City Council rely on the ND adopted by the Board of Supervisors for consideration and approval of the Amended and Restated Contract, as proposed in the attached Resolution (Attachment 1).

PUBLIC NOTIFICATION AND COMMENTS:

The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2.

Attachments:

1. Proposed Resolution making Responsible Agency Findings Pursuant to the California Environmental Quality Act (CEQA) for the Amended and Restated Water Supply Contract Project for Zone 3 and Approving Execution of an Amended and Restated Water Supply Contract between the City of Arroyo Grande and the San Luis Obispo County Flood Control and Water Conservation District.

2. Zone 3 Amended and Restated Contract

3. County of San Luis Obispo Notice of Intent and Negative Declaration

4. County of San Luis Obispo Resolution Approving Execution of Amended and Restated Water Supply Contracts with the Zone 3 Contractors and Adopting a Negative Declaration Pursuant to Public Resources Code Section 21000 Et Seq. (CEQA)

5. Response to Comments on the Lopez Water Project Contract Changes Draft Negative Declaration

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ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE MAKING RESPONSIBLE AGENCY

FINDINGS PURSUANT TO THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT (CEQA) FOR THE

AMENDED AND RESTATED WATER SUPPLY CONTRACT
PROJECT FOR ZONE 3 AND APPROVING EXECUTION

OF AN AMENDED AND RESTATED WATER SUPPLY

CONTRACT WITH THE SAN LUIS OBISPO COUNTY

FLOOD CONTROL AND WATER CONSERVATION

DISTRICT
WHEREAS, the City of Arroyo Grande (“the City”), entered into a Water Supply Contract (Contract) with the San Luis Obispo County Flood Control and Water Conservation District (District) on October 24, 1966, which was subsequently amended and restated and pursuant to which the City receives a water entitlement from Lopez Reservoir; and WHEREAS, on or around the same time, other local agencies (said local agencies and the City are collectively referred to as the Zone 3 Contractors) entered into substantially similar Water Supply Contracts with the District and subsequent amendments and restatements thereto pursuant to which they also receive a water entitlement from Lopez Reservoir (the Contract and the Water Supply Contracts with the other Zone 3 Contractors as previously amended and restated are collectively referred to as the Contracts); and
WHEREAS, the Zone 3 Contractors wish to again amend and restate the Contracts to (i) provide storage rights for each of the Zone 3 Contractors to store their unused entitlement, surplus water and State Water Project Water year over year in Lopez Reservoir and (ii) permit the refunding of the bonds associated with the completed Lopez Dam Seismic Retrofit Project in order to reduce the costs of debt service (Project) (which purposes may advance on a similar schedule or on different schedules); and WHEREAS, the City is a responsible agency for purposes of environmental review of the Project under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21000 et seq. and the CEQA Guidelines; and WHEREAS, District staff prepared a Negative Declaration for the Project which was approved by the Environmental Division Manager, and which concludes that the Project will not have a significant effect on the environment and that no mitigation measures are required; and
WHEREAS, prior to commencement of preparation of the Negative Declaration, District staff conducted early consultation with potentially affected local, State and Federal

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RESOLUTION NO.

PAGE 2
agencies, Native American groups and other potentially interested parties but no substantive comments were received; and
WHEREAS, notice of intent to adopt the proposed Negative Declaration was also published in a local newspaper and circulated to the relevant, local, State and Federal agencies through the State Clearinghouse and by mail and the thirty (30) day review period for the Project ended on February 28, 2022; the only comments received were from the County of San Luis Obispo Department of Parks and Recreation opining that the Project would have potential net benefits for recreational use; and WHEREAS, the form of the amended and restated Contracts and the Negative Declaration was presented to and considered by the Board of Supervisors, acting as the governing board of the District (District Board), on August 23, 2022, together with a summary of all comments received during the public review process, and the District Board approved the form of the amended and restated Contract and adopted the Negative Declaration, finding that there is no substantial evidence that the Project will have a significant effect on the environment; and
WHEREAS, the City has reviewed and considered the information contained in the Negative Declaration and the whole environmental record as well as the proposed Amended and Restated Water Supply Contract between the District and the City.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:

The foregoing recitals are true and correct.

1. Negative Declaration. The City Council has considered the environmental impacts of the Project as shown in the Negative Declaration prior to making a decision on the Project. In its independent judgment and analysis, the City Council finds the Negative Declaration is adequate for City use to authorize execution of the Amended and Restated Water Supply Contract between the District and the City.

More specifically, on the basis of the environmental record before the City Council, including comments received, the City Councilhas determined that the Amended and Restated Water Supply Contract will not have a significant effect on the environment.

2. Approval of Amended and Restated Supply Contract. The City Council hereby approves and authorizes the Mayor to sign the Amended and Restated Water Supply Contract with the District presented to this Council. To accommodate the possibility of financing purposes proceeding on a different schedule than water storage purposes reflected in the Amended and Restated Water Supply Contract, the amendments in the Amended and Restated Water Supply Contract related to

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RESOLUTION NO.

PAGE 3
financing matters may instead be effected under a separate amendment document which the City Council hereby approves and authorizes the Mayor to execute and deliver, with such changes therein as the Mayor shall approve, such approval to be conclusively established by the execution and delivery thereof subject to approval of such changes by the City Attorney.

3. Effective Date. This Resolution shall take effect immediately upon its passage and adoption.

On motion of Council Member ____________, seconded by Council Member _________, and by the following roll call vote, to wit:

AYES:

NOES:

ABSENT:

The foregoing Resolution was approved this 27th day of September, 2022.

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RESOLUTION NO.

PAGE 4

CAREN RAY RUSSOM, MAYOR
ATTEST:

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:

WHITNEY MCDONALD, CITY MANAGER
APPROVED AS TO FORM:

TIMOTHY J. CARMEL, CITY ATTORNEY

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AMENDED AND RESTATED CONTRACT BETWEEN

SAN LUIS OBISPO COUNTY FLOOD CONTROL
AND

WATER CONSERVATION DISTRICT
AND

THE CITY OF ARROYO GRANDE

FORA WATER SUPPLY
Dated as of
August 2022
ATTACHMENT 2

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Table of Contents
Article 1. Definitions ...................................................................................................................... 4 Article 2. Term of Contract .......................................................................................................... 14 Article 3. Validation ...................................................................................................................... 15 Article 4. Distribution and Sales of Project Water ..................................................................... 15 (A) Legally Required Water Releases ............................................ ................................. 15 (B) Entitlements ............................................................................................................... 15 (C) Surplus Water Rates .................................................................................................. 16 (D) Su rplus Water ............................................................................................................ 18 (E) Stored Water .............................................................................................................. 19 Article 5. Water Shortages .......................................................................................................... 19 Article 6. Completion of Seismic Remediation Improvements ................................................ 19 Article 7. Delivery and Storage of Water .................................................................................... 21 (A) Water Furnished to the Agency ................................................................................ 22 (B) Storage of Lopez Water ............................................................................................. 22 (C) Storage of State Water Project Water ...................................................................... 24 Article 8. Measurement ............................................................................................................... 26 Article 9. Time for Delivery of Project Water ............ ................................................................. 27 Article 10. Responsibility for Delivery and Distribution of Water Beyond Delivery Points ................................................................................................................. 28 Article 11. Operation and Maintenance of Project and Water Enterprise .............................. 29 Article 12. Water Quality ............................................................................................................. 33 Article 13. Curtailment of Delivery of Project Water fo r Maintenance Purposes ................... 33 Article 14. Rate and Method of Payment.. ................................................................................. 34 (A) Allocation of Total Project Costs and Debt Service ................................................. 34 (B) Agency Contract Payments ....................................................................................... 35 (C) Agency Credits against Contract Payments ............................................................. 36 (D) Variable Charges ........................................................................................................ 38 (E) Use by District of Total Contract Payments ............ ................................................. 38 Article 15. Take-or-Pay Obligation of Agency ............................................................................ 39

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Article 16. Pledge; Establishment and Collection of Rates and Charges ................................. 39 Article 17. Default ........................................................................................................................ 40 Article 18. Failure to Levy, Set, or Collect Taxes, Rates, and Charges ...................................... 42 Article 19. Area Served by Agency .............................................................................................. 44 Article 20. Changes in Organization of Agency ......................................................................... 44 Article 21. Agency's Obligations Several and Not Joint; Limited Step-Up Provisions and Reimbursement ..................................................................................................... 44 Article 22. Contracts to Be Uniform ........................................................................................... 46 Article 23. Amendments ............................................................................ .................................. 46 Article 24. Opinions and Determinations; Good Faith; Information to Be Provided to Zone 3 Advisory Committee ........................................................................................... 48 Article 25. Waiver of Rights ......................................................................................................... 49 Article 26. Notices ........................................................................................................................ 49 Article 27. Assignment; Pledge ................................................................................................... 50 Article 28. Inspection of Books and Records ............................................................................. 50 Article 29. Severability ................................................................................................................. 51 Article 30. Water Rights ............................................................................................................... 51 Article 31 . Wheeling of Water ..................................................................................................... 51 Article 32. Execution in Counterparts ........................................................................................ 52 Article 33. Governing Law ......... .................................................................................................. 53 Article 34. Re-funding Related Provisions .................................................................................. 53 EXECUTION ................................................................................................................................... 55 Exhibit A ........................................................................................................................................ 57

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AMENDED AND RESTATED CONTRACT BETWEEN SAN LUIS OBISPO COUNTY

FLOOD CONTROL AND WATER CONSERVATION

DISTRICT AND THE CITY OF ARROYO GRANDE

FOR A WATER SUPPLY
This Amended and Restated Contract (the "Contract"), made this12/ ~ay of Autj 0sf, 2022, by and between the San Luis Obispo County Flood Control and Water Conservation District (the "District"), established under and pursuant to Chapter 1294 of the 1945 Statutes of the State of California (the "State") and the City of Arroyo Grande, a public agency organized and existing under the laws of the State of California, acting pursuant to the laws of such State (the "Agency"), amends and restates that certain contract for a water supply by and between the District and the Agency, dated March 28, 1966, and as previously amended and restated and further amended thru the date hereof (collectively, the "Prior Supply Contract"), with reference to the following facts:

WITNESSETH:

WHEREAS, the District has heretofore constructed, improved and operated a public works project (the "Project," as more particularly defined below) that provides a supply of water available for use within the District; and
WHEREAS, the District has made certain repairs and improvements to the Project for public safety reasons, which improvements (collectively, the "Seismic Remediation Improvements") were financed with the proceeds of certain obligations of the District; and WHEREAS, certain of those obligations were refinanced in 2011 and are proposed to be refinanced again to take advantage of conditions in the financial marketplace appropriate for

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a cost-effective refunding for the benefit of the taxpayers and ratepayers of the District and the Agency; and
WHEREAS, given that such obligations are outstanding, the parties have not removed or modified certain provisions of the Contract related to the Seismic Remediation Improvements even though some such provisions were performed, (e.g., the provisions related to the now-completed Seismic Remediation Improvements); and
WHEREAS, the lands and inhabitants within the jurisdiction of the Agency are in need of water provided by the Project for beneficial uses, and the District has provided water from the Project to the Agency and to the City of Grover Beach, the City of Pismo Beach, the Oceano Community Services District, and the County of San Luis Obispo on behalf of Service Area No. 12 (collectively, the "Other Agencies," as hereinafter defined) since 1966, pursuant to several water supply contracts, including the Prior Supply Contract as previously amended and restated and further amended thru the date hereof (collectively, the "Prior Supply Contracts"); and
WHEREAS, the District and the Agency and Other Agencies now wish to amend and restate the Prior Supply Contracts to provide the Agency and Other Agencies with storage rights in the Lopez Reservoir and to make other amendments clarifying the manner in which Project Water is to be made available to the Agency and the Other Agencies while preserving the same basic structure and obligations under the Prior Supply Contracts, including with respect to downstream releases; and

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WHEREAS, following execution of the most recently amended and restated Prior Supply Contracts in or around August 2000, the District and the Agency and Other Agencies took certain actions as reflected in the Interim Downstream Release Schedule (adopted by the Board of Supervisors via Resolution No. 2007-164) and the Low Reservoir Response Plan (Board of Supervisors adopted certain policies and procedures therein for the then drought emergency via Resolution No. 2014-377) related to the manner in which the District will manage downstream releases on an interim basis; and WHEREAS, given the generality of Article 4(A) and the authority given to the District under Article 4(8) of the Prior Supply Contract (substantively unchanged in the Contract), such actions described in the preceding recital have not necessitated and do not currently necessitate an amendment to the Prior Supply Contract as part of the Contract, and it is anticipated that the same will be true of similar future actions, including adoption of the Habitat Conservation Plan which will replace the Interim Downstream Release Schedule subject to the minor clarifying amendment contained herein; and WHEREAS, the amendments set forth herein will also aid the District in meeting its intended communitywide results of enhancing the economic, environmental and social quality of life in San Luis Obispo County; and
WHEREAS, the Agency desires to continue to contract with the District for a water supply to be for the use and benefit of the lands and inhabitants served by the Agency and for which the Agency will make payment to the District upon the terms and conditions hereinafter set forth; and

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WHEREAS, the District and the Agency wish to provide for the refinancing of certain obligations the proceeds of which were used to finance or refinance the completed Seismic Remediation Improvements.

NOW, THEREFORE, IT IS HEREBY MUTUALLY AGREED by the parties hereto as follows:

Article 1. Definitions. When used in the Contract, t he following terms shall have the meanings hereinafter set forth :
"Additional Projects" shall mean those capital projects to be undertaken by the District in addition to the Seismic Remediation Improvements which have the effect of (i) preserving and maintaining the Safe Yield of the Project (a "Type I Additional Project"); (ii) maintaining the quality of water provided by the Project (a "Type II Additional Project"); or (iii) any other capital project agreed to by the Agency and all of the Other Agencies (a "Type Ill Additional Project").
"Agency Initiated Exchange" shall mean an exchange initiated by a State Water Project Subcontractor to deliver State Water Project Water to the Project to replace Project Water requested for delivery by Other Agencies. "Calendar Quarter" shall mean each three-month period commencing on January 1, April 1, July 1, and October 1 of each year. "Calendar Year" shall mean the twelve-month period from January 1 of a calendar year to December 31 of the same calendar year, both dates inclusive. "Capital Costs" shall mean costs expended by the District at or appurtenant to the Project, for permanent improvements to the Project or equipment which is capitalizable on the books of the District.

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"Capital Reserves" shall mean those reserves established by the District for the Scheduled Maintenance of the Project or for anticipated costs of upgrade and improvements likely to be imposed by a Governmental Authority (each, an "External Requirement") in order for the District to continue to operate the Project for water supply purposes, established either (a) on a year-to-year basis by the District in its annual budgets, copies of which shall be provided to the Agency promptly following adoption, or (b) on a multi-year basis by the District through the development and promulgation to the Agency of a long-term capital improvement plan of the District; provided, however, that no Type Ill Additional Projects shall be funded from Capital Reserves; and provided further, that the District shall not expend any portion of Capital Reserves for any External Requirement until and unless such External Requirement becomes a final order of such Governmental Authority, not subject to further appeal.
"Continuous Spillway Flow'' shall mean when the entire perimeter of the spillway crest is wetted and at least 1 acre foot of water has spilled. "Contract Payments" shall mean those payments due from the Agency to the District hereunder, as more particularly set forth in Article 14 hereof. "County Board" shall mean the Board of Supervisors of the County of San Luis Obispo, California.
"Coverage Account" shall mean the account established for the Agency either with the District or with a Depository, as provided in Article 18 hereof. "Coverage Factor" shall mean 25% of Agency Debt Service, determined in accordance with Article 14 hereof, calculated for each Fiscal Year.

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"Debt Service" shall mean, in the aggregate: (a) principal and interest (or mandatory sinking fund payments, installment or lease or similar payments due) with respect to all Tax-Exempt Obligations at the time outstanding in accordance with their terms, provided that capitalized interest funded from the proceeds of Tax-Exempt Obligations need not be taken into account; (b) annual costs of administering the Tax-Exempt Obligations, including the annual fees of any trustee or paying agent therefor, and; (c) the costs, if any, of annual credit enhancement for the Tax-Exempt Obligations; and (d) principal, interest, annual fees and reserve requirements under the SRF Loan.
"Depository" shall mean a financial institution designated for the deposit and administration of the Coverage Account of the Agency, as and when appointed in accordance with Article 18 hereof.
"District Initiated Exchange" shall mean an exchange initiated by the District to provide State Water Project Water to the Agency during a Lopez Water Treatment Plant (the "WTP") shutdown or other incident that prevents treatment and/or delivery of Lopez Water.
"Entitlements" shall mean the quantity of water to be distributed to the Agency under the Contract and to the Other Agencies under contracts substantially similar to the Contract (collectively, the "Contracts'J with the District, as established in Article 4(B) hereof and of such other Contracts.
"Fiscal Year" shall mean the twelve-month period from July 1 of the Calendar Year to June 30 of the immediately following Calendar Year, both dates inclusive.

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"Force Majeure" shall mean any cause or causes not reasonably within the control of the party claiming relief or suspension and which, by the exercise of reasonable diligence, such party is unable to prevent or overcome, including acts of God; landslides, subsidence, lightning, earthquakes, fires, storms or storm warnings, crevasses, floods or washouts; strikes, lockouts or other industrial disturbances; acts of the public enemy, acts of terror, sabotage, wars, blockades, military action or epidemics; civil disturbances; explosions, breakage or accident to wells, machinery, equipment or lines of pipe; the necessity for testing or making repairs or alterations to wells, machinery, equipment or lines of pipe due to such an event; freezing of wells, equipment or lines of pipe; inability of any party hereto to obtain, after the exercise of reasonable diligence, necessary materials, supplies, rights of way or permits; or any action or restraint by any Governmental Authority (so long as the party claiming relief has not applied for or assisted in the application for, and has opposed where and to the extent reasonable, such action or restraint, and as long as such action or restraint is not the result of a failure by the claiming party to comply with applicable law).
"General Obligation Bonds" shall mean those certain general obligation bonds of the District, issued pursuant to authorization received from the voters of the District at the election conducted on March 7, 2000, in an aggregate principal amount of not to exceed $13,200,000, supported by a levy of ad va!orem taxes throughout the District, including the 2011 G.O. Bonds and any general obligation bonds issued to refund the 2011 G.O. Bonds. "Governmental Authority" shall mean any State, federal or local governmental agency with the authority to regulate or control any aspect of the District or the Project or their operations.

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"Operating Segment" as to the Agency, shall mean the segment of the Project constructed for, and providing service directly to, the Agency, which, as of the date hereof, consists of Units A and B.
"Operation and Maintenance Costs" shall mean the reasonable and necessary current expenses of maintaining, repairing, and operating the Project, including District administrative expenses directly attributable to Project function, but excluding Capital Reserves and Debt Service, all computed in accordance with generally accepted accounting principles applicable to enterprise funds of government agencies.
"Other Agency" shall mean any other water-distributing public agency of the State, which, having the legal power to do so, executes a water supply contract with the District substantially identical to the Contract, except for agency information, dates, Unit participations, Proportionate Share and Percentage Share, other than for the purpose of purchasing Surplus Water, including, as of the date hereof, the City of Grover Beach, the City of Pismo Beach, the Oceana Community Services District, and the County of San Luis Obispo, on behalf of Service Area No. 12.
"Percentage Share" shall mean the Agency's aggregate attributed share, by percentage, of charges for Operation and Maintenance Costs and Capital Reserves for any given Water Year for each respective Unit, as compared to all the charges for Operation and Maintenance Costs and Capital Reserves attributable to each such Unit levied against the Agency and all Other Agencies, and as specified for the Agency below:

Unit A 50.55 %
Unit B 50.55 %

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Unit C 0.00 %
Unit D 0.00 %
Unit E 0.00%
Unit F 0.00 %
Unit G 0.00 %
Unit H 0.00 %
Unit I 0.00%
UnitJ 0.00 %
"Project" shall mean (A) the 1965 Zone 3 Project described in Resolution No. 377-65 and Ordinance No. 813 of the District, adopted August 17, 1965, consisting of the following works and improvements: (i) Lopez Dam and Reservoir; (ii) Lopez Dam-Arroyo Grande Conduit System; (iii) Arroyo Grande-Avila Conduit System; (iv) Arroyo Grande-Oceana Conduit System; (v) water treatment plant; (vi) terminal reservoir; (vii) any new construction, reconstruction or replacement of these works and improvements, including, without limitation, the previously constructed Seismic Remediation Improvements, and (viii) all land, easements, Rights-of-Way, pumping plants, pipes, valves, fittings, machinery and other property necessary for any of the foregoing. "Project Water" or "Lopez Water'' shall mean water made available from the Project. "Proportionate Share" shall mean the percent of the total Entitlements available to the Agency, as compared to the aggregate of all Entitlements given to the Agency and all Other Agencies hereunder and under all Contracts in any given Water Year, as set forth in Article 4(8) hereof.

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"Rates and Charges" shall mean the rates and charges imposed and collected by the Agency for the provision of water services by its Water Enterprise, and/or, if the Agency shall instead have levied special taxes as described in Article 14(C)(1 )(b) below, such special taxes. "Recreational Budget Transfers" shall mean the annual transfer ordered by action of the County Board from revenues earned from recreational uses of the Project, based on the percentage of recreational usage, initially established under the terms of County Board Resolution No. 2000-133, adopted on April 4, 2000.
"Refunding Bonds" shall mean those certain bonds executed and delivered by or on behalf of the District, refunding any General Obligation Bonds and/or Tax-Exempt Obligations of the District (together, the "Prior Obligations"), the proceeds of which are applied: (i) to refinance or retire the Prior Obligations of the District and (ii) to pay any costs of issuance in connection therewith. "Safe Yield" shall mean the safe yield of the Project, calculated, and established from time to time in accordance with the provisions of Article 4 hereof, being 8,730 acre-feet of water as of the date hereof.
"Scheduled Maintenance" shall mean the maintenance tasks for the Project which are required to be accomplished less frequently than annually, a portion of the cost of which is set aside in each annual budget of the District in anticipation of such requirement.
"Seismic Remediation Improvements" shall mean those certain improvements, more particularly described on Exhibit A hereto, to the 1965 Zone 3 Project required by State mandate, and necessary in order for the Project to continue to operate as a supplier of water to the District, the Agency and the Other Agencies.

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"SRF Loan" shall mean the Funding Agreement (Contract No. SRF02CX138) between the State Department of Water Resources, acting on behalf of the State Department of Health Services, and the District, as heretofore amended and as it may be further amended from time to time.
"State Water Project Water" shall mean water made available to the Agency or Other Agencies (each a "State Water Project Subcontractor") through a separate contract with the District for water from the California State Water Project (the "State Water Project").
"Stored Lopez Water" shall mean Entitlement or Surplus Water that the Agency or Other Agencies chooses not to take delivery of and put into storage at the end of the Water Year.
"Stored State Water Project Water" shall mean water credited to the Agency or Other Agencies through initiation of an Agency Initiated Exchange. "Surplus Water" shall mean the water available from the Project following distributions of water described in Article 4, paragraphs (A), (B), and (C) hereof. "Tax-Exempt Obligations" shall mean those certain obligations executed and delivered by or on behalf of the District, representing and evidencing interests of the owners thereof in certain installment payments made by the District for the acquisition of the Project, whose proceeds were used to finance, refinance or reimburse the costs of Seismic Remediation Improvements, in an aggregate principal amount of not to exceed the net amount, following the application of proceeds of sale of the General Obligation Bonds, required to complete the Seismic Remediation Improvements pursuant to State mandate and the District's competitive bid process for such improvements. The term

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''Tax-Exempt Obligations" shall also include any refunding bonds issued in order to refund (i) such Tax-Exempt Obligations or (ii) such refunding Tax-Exempt Obligations. "Total Contract Payments" shall mean all of the payments due from the Agency and the Other Agencies pursuant to Article 14 hereof and the same Article of the other Contracts.
"Total Project Costs" shall mean, for any given Water Year, the aggregate amount necessary to provide for (i) Operation and Maintenance Costs; (ii) Debt Service; and (iii) Capital Reserves, as calculated by the District in accordance with Article 14 hereof and noticed to the Agency and the Other Agencies.
"2011 G.O. Bonds" shall mean San Luis Obispo County Flood Control and Water Conservation District, Zone 3 General Obligation Refunding Bonds, 2000 Election, 2011 Series A, originally issued in the aggregate principal amount of $10,760,000. "Unit" shall mean those facilities which collectively make up the Project, delineated as follows:
(A) "Unit A" shall consist of the Lopez Dam and Reservoir, including access roads, fish trapping facilities and outlet works, all expenses of executing and delivering the Tax-Exempt Obligations, all moneys necessary to fund interest with respect to the Tax-Exempt Obligations prior to receipt of the first payments under the Contract and the other Contracts, and all engineering and legal fees for the entire Project. (B) "Unit B" shall consist of the terminal reservoir, a pumping plant and bypass conduit, the water treatment plant and the Lopez Dam-Arroyo Grande Conduit System. The "Lopez Dam-Arroyo Grande Conduit System" shall be defined as that portion of the pipeline conduit and all appurtenances from the Lopez Dam outlet works to and including a bifurcation structure located at the intersection of the El Camino Real and Brisco Road in Arroyo Grande.
(C) "Unit C" shall consist of that portion of the Arroyo Grande-Avila Conduit System consisting of the pipeline conduit and all appurtenances from the bifurcation structure which is a part of Unit B to the intersection of the El Camino Real and Oak Park Blvd. in Grover Beach.

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(D) "Unit D" shall consist of the Arroyo Grande-Oceana Conduit System. The "Arroyo Grande-Oceana Conduit System" shall be defined as that portion of the pipeline conduit and all appurtenances from the south end of the Lopez Dam-Arroyo Grande Conduit System to a connection to the Oceana water system at the intersection of Lancaster Drive and South Elm Street in Arroyo Grande.
(E) "Unit E" shall consist of that portion of the Arroyo Grande-Avila Conduit System consisting of the pipeline conduit and all appurtenances from the west end of Unit C to the intersection of El Camino Real with Vista del Mar in Shell Beach.
(F) "Unit F" shall consist of that portion of the Arroyo Grande-Avila Conduit System consisting of the pipeline conduit and all appurtenances from the west end of Unit E to the intersection of Shell Beach Road with El Portal Drive in Pismo Beach.
(G) "Unit G" shall consist of that portion of the Arroyo Grande-Avila Conduit System consisting of the pipeline conduit and all appurtenances from the west end of Unit F to the intersection of Avila Beach Drive (San Luis Obispo County Road No. 2070) with Ontario Road (San Luis Obispo County Road No. 2066).
(H) "Unit H" shall consist of that portion of the Arroyo Grande-Avila Conduit System consisting of the pipeline conduit and all appurtenances from the west end of Unit G to the intersection of First Street and San Juan Street in the community of Avila Beach.
(I) "Unit I" shall consist of that portion of the Arroyo Grande-Avila Conduit System consisting of the pipeline conduit and all appurtenances from the west end of Unit H to the Port San Luis Harbor District Tank site.

U) "Unit I" shall consist of that portion of the Arroyo Grande-Avila Conduit System consisting of the pipeline conduit and all appurtenances from the west end of Unit G to a storage tank site at an approximate elevation of 260 feet above sea level located at a point approximately 1,300 feet westerly of the center line of Highway 101 and 1,500 feet southerly of San Luis Bay Drive (San Luis Obispo County Road No. 2068). ''Variable Charges" shall mean Project pumping energy and chemical charges. "Water Enterprise" shall mean the water system operated and to be operated by the Agency for sales of water to the general public within its jurisdiction.

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'Water Yea r" shall mean the twelve-month period from April 1 of a Calendar Year to March 31 of the immediately following Calendar Year, both dates inclusive. "Zone 3" shall mean the area comprising Zone 3 of the District. "Zone 3 Advisory Committee" shall mean that certain advisory committee comprised of representatives of the District, the Agency and each of the Other Agencies, appointed by the District, the Agency and the Other Agencies, from time to time and meeting at scheduled intervals to advise the District on matters relating to the Project, the Contract and the other Contracts.

Article 2. Term of Contract. The Contract shall become effective and shall replace and supersede the Prior Water Supply Contract as of the date that all of the following have occurred: (a) the District and the Agency have executed the Contract; (b) the District and each of the Other Agencies have executed a like amended and restated Contract and (c) the District has received the written confirmation from the rating agency or agencies and the written consent from the bond insurance provider in accordance with Article 23 of the Prior Supply Contracts. The Contract shall remain in effect through the date which is six (6) months following the repayment of the final Debt Service payments of any debt obligation outstanding; provided, however, that the term of the Contract shall automatically be extended for additional periods of five (5) years from the scheduled expiration date hereof, so long as the Agency has not, by the date which is 180 days prior to the scheduled expiration date hereof, given written notice to the District to the effect that it wishes to terminate the Contract. The Agency understands and agrees that each of the Other Agencies has the right to terminate its Contract on similar terms and that, if any Other Agency shall so elect to terminate its Contract, the Entitlement and

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corresponding obligations of such Other Agency shall be apportioned among the Agency and the remaining Other Agencies, based upon a recalculation of Proportionate Share or Percentage Share, based, where appropriate, on their access to and use of Units, or as otherwise unanimously agreed by the Agency (unless the Agency shall have withdrawn), all remaining Other Agencies and the District.

Article 3. Validation. Either the District, the Agency, or any Other Agency may file and diligently prosecute to a final decree in a court of competent jurisdiction a proceeding in mandamus or other appropriate proceeding or action for the judicial examination, approval, and confirmation of any proceedings had for the organization of the District and for the participation of the Agency in projects hereunder, or for the validation of the Installment Purchase Agreement which is the basis for the Tax-Exempt Obligations, or the proceedings of the governing body of the Agency leading up to and including the making of the Contract and the validity of the provisions thereof and hereof.

Article 4. Distribution and Sale of Project Water. The following provisions govern the distribution of water from the Project to the Agency, to the Other Agencies and for other purposes, in the priorities set forth below:
(A) Legally Required Water Releases. The parties hereto acknowledge and agree that Project Water is subject to certain releases and minimum storage requirements imposed by law which are not affected by the terms hereof.

Without limiting the foregoing, the parties specifically acknowledge and agree that releases by the District pursuant to any Habitat Conservation Plan or related implementing agreement constitute release requirements imposed by law for purposes of the priorities established herein.

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(B) Entitlements. Subject to the foregoing, and except as otherwise provided in Article 5, the District shall make available to the Agency in each Water Year, to the extent possible, 2,290 acre-feet of Project Water. The District will, in order to satisfy this entitlement and the entitlements of Other Agencies, set aside from the Safe Yield the total of 4,530 acre-feet of Project Water which will be distributed to the Agency and the Other Agencies, as established under Article 4(8) hereof and of their respective Contracts. The Agency's Entitlement comprises 50.55 percent of the aggregate Entitlements awarded under all the Contracts, including the Contract. Such percentage comprises the Agency's Proportionate Share hereunder. Notwithstanding the foregoing, the aggregate Entitlements available under the Contract and under the other Contracts may be reduced, following written notice given to the Agency from the District, due to (1) permanent or long-term restrictions imposed upon the District caused by (i) extreme changes in long-term meteorological patterns that reduce the Safe Yield assumptions for the Project or (ii) multi-year drought conditions; or (2) temporary or short-term limitations based upon (i) reduced ability of the Project either to treat or distribute water because of a Force Majeure event, (ii) drought conditions or (iii) water quality standards which reduce the safe, treated output of the Project at the time. (C) Surplus Water Rates. Surplus Water shall be the remaining portion of the annual Safe Yield of the Project after distribution of Entitlements described in paragraph (B), downstream releases, water described in paragraph (A), and including any undelivered Entitlement put into storage on behalf of the Agency and Other Agencies in that Water Year. Surplus Water shall be declared by the District on or about May 1st of

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each year after end of year water accounting has been completed. Surplus Water shall be sold in accordance with the provisions of this paragraph. (1) Su rplus Water shall first be offered by the District to the Agency and the Other Agencies in accordance with their Proportionate Shares.

The cost of Surplus Water shall be based on the Variable Charges as described in Article 14(D) below in any given Fiscal Year. The cost of Surplus Water shall be paid by the Agency in the same Fiscal Year as the Surplus Water is delivered to the Agency. Neither the Agency nor any Other Agency shall resell Surplus Water at any time to third parties, without the prior written consent of all Other Agencies.
(2) The District may offer to sell and deliver any Surplus Water not requested by the Agency or the Other Agencies hereunder to any other prospective purchaser without right of renewal, in a manner and at prices which will return to the District the largest net revenue practicable, but in no event at prices less than those at which such Surplus Water is delivered to the Agency, unless the Agency is first allowed another opportunity to request such Surplus Water, and in each case, attempting to recapture the Operation and Maintenance Costs, the Variable Costs, if any, and Debt Service attributable to the volume of Surplus Water actually purchased by such third parties, at the highest price the market will then bear.
(3) All revenues derived by the District from the sale of Surplus Water to any third party hereunder shall be applied as a credit to the obligations of

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the Agency and the Other Agencies, based on the Percentage Shares of the Agency and each Other Agency.
(D) Surplus Water. Surplus Water shall be the remaining portion of the annual Safe Yield of the Project after distribution of Entitlements described in paragraph (B), downstream releases, water described in paragraph (A) and including any undelivered Entitlement put into storage on behalf of the Agency and Other Agencies in that Water Year.

Surplus Water shall be calculated for each Water Year by subtracting from the Safe Yield of the Project an amount equal to the sum of the quantity of water released downstream during the immediately prior Water Year, which shall not exceed 4,200 acre feet unless legally required by Article 4(A) hereof, the quantity of Entitlement water delivered to the Agency and the Other Agencies during the immediately prior Water Year, and the quantity of undelivered Entitlement water that the Agency and Other Agencies put into storage in Lopez Reservoir, but excluding downstream releases and Entitlement deliveries that occurred during the period of time that the District determined that continuous spillway flow was occurring at Lopez Dam. As provided in Article 7(B) and 7((), Project Water that was put into storage in Lopez Reservoir prior to the District's determination that a continuous spillway flow was occurring at Lopez Dam may be subject to losses.

The District shall notify the Agency of the total amount of Surplus Water available for the current Water Year, and once so declared by the District, said amount shall not be changed by the District without first obtaining the consent of the Agency and all Other Agencies.

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Surplus Water offered to the Agency will be delivered to Agency in the manner provided for the delivery of its Entitlement and to the extent that all of said Surplus Water offered to the Agency is not so delivered by the end of the Water Year in question or put into storage in Lopez Reservoir for the Agency, then such undelivered amount shall revert to the District and shall not thereafter be available to Agency.
(E) Stored Water. The Agency may choose to take delivery of its previously stored water regardless of whether the current year's Entitlement or available Surplus Water has been delivered. Water put into storage by the Agency shall be subject to losses as outlined in Article 4 and Article 7.

Article 5. Water Shortages. From time to time during the term of the Contract, there may occur a shortage in the quantity of Project Water available for delivery to the Agency by the District under the Contract, including, without limitation, for the reasons enumerated in Article 4(8). In such event, no liability shall accrue against the District or any of its officers, agents or employees for any damage, direct or indirect, arising from a shortage on account of any reason beyond the control of the District. In any Water Year during which such a shortage has caused a reduction as described in said Article 4(8), so that the total quantity of the Entitlements available for the District to distribute is less than the total established in said Article 4(8), following giving of notice by the District as provided in Article 4(8), the Proportionate Share of the Agency and each Other Agency under its Contract shall be applied to such reduced amount in determining the volume of Project Water to be delivered to the Agency and such Other Agencies in such Water Year.

Article 6. Completion of Seismic Remediation Improvements. The Agency understands and acknowledges that the District intends to commence and complete the Seismic Remediation

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Improvements with due diligence; in order to finance the construction of the Seismic Remediation Improvements, the Agency understands and agrees that the District will have to cause the execution and delivery of the Tax-Exempt Obligations on terms and conditions favorable to the District, the Agency and the Other Agencies, to be established at the time of sale of the Tax-Exempt Obligations. In particular, the Agency covenants and agrees that:
(A) The District shall contract for the public works comprising the Seismic Remediation Improvements on such terms as the District, in its sound business judgment, may deem in the best interests of the District, the Agency and the Other Agencies, but only following consideration by the Zone 3 Advisory Committee of any such contracts in excess of the minimum standards for contracts of a similar type then mandated for formal approval by the County Board (the "County Standards"); provided, however, that no such consideration shall be required as a precondition to any such action in response to an emergency; and
(B) The District may engage, but only (except in an emergency, in which case no such consideration shall be required as a precondition) following consideration by the Zone 3 Advisory Committee of any such contracts in excess of the County Standards, contractors and consultants, including, without limitation, environmental specialists, engineers, financial consultants, underwriters, attorneys and accountants (collectively, the "Consultants"), as may be necessary in order to plan and construct the Seismic Remediation Improvements and to issue and sell the Tax-Exempt Obligations, on such terms and conditions as the District shall determine; provided, however, that the District and the Agency hereby covenant and agree that all such contracts already in place as of the effective date of this Contract shall be deemed

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noticed to and considered by the Zone 3 Advisory Committee; and provided further, that no such consideration shall be required as a precondition to any such action in response to an emergency; and
(C) The District may authorize and sell at either public or private sale, or cause to be executed and delivered, the Tax-Exempt Obligations at any time following the effective date hereof, to provide for the financing or reimbursement to the District of the costs of the Seismic Remediation Improvements, to establish a reserve fund for the Tax-Exempt Obligations and to pay the costs of delivery thereof; and (D) The Agency will execute and provide such instruments, certificates and agreements as may be necessary in order for the District to deliver the Tax-Exempt Obligations, including, without limitation, information for inclusion in the disclosure document for the Tax-Exempt Obligations and a continuing disclosure agreement to permit compliance with Rule 15c2-12 of the Securities and Exchange Commission, respecting the Agency's financial condition and operations; and (E) The Agency will cooperate with the District and the Consultants in connection with the planning and construction of the Seismic Remediation Improvements and the authorization and delivery of the Tax-Exempt Obligations.

The District covenants and agrees to use its best efforts to complete the Seismic Remediation Improvements by a date no later than June 30, 2002.

Article 7. Delivery and Storage of Water. All water to be furnished to the Agency pursuant to this Contract shall be furnished to the Agency as provided by Article 7(A) or put into or delivered from storage in Lopez Reservoir as provided in Article 7(8) and 7(C).

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(A) Water furnished to the Agency shall be delivered to the Agency at the intersection of Highway 101, South Frontage Road, and Brisco Road in the City of Arroyo Grande. If the Agency shall desire at any time during the term of the Contract to change the address at which it receives water from the District hereunder, or to install additional points of delivery, it may do so if it furnishes all funds necessary to cover any District expenses involved, or if it undertakes the construction of the necessary conduits and appurtenances at its own expense; provided that the Agency shall not undertake any such construction until it has first obtained District approval of the plans and specifications for such work. Upon the receipt of a request for a change in or addition to the place of delivery of water thereunder, and the deposit of any required funds as set forth in this paragraph, the District shall, if it has elected to perform its own construction of conduits and appurtenances, diligently proceed to construct the same. (B) Storage of Lopez Water. The Agency may choose to put any water into storage in Lopez Reservoir that the Agency otherwise has the right to be furnished pursuant to Article 7(A), including Entitlements as provided by Article 4(B) and Surplus Water as provided in Article 4{D). Stored Lopez Water in Lopez Reservoir is subject to the following:
(1) The Agency must comply with the requirements of Article 9. (2) Water put into storage in Lopez Reservoir by the Agency is subject to the following losses:
(a) Evaporation losses shall be calculated by the District and shall reduce the Agency's water in storage in Lopez Reservoir by calculating the amount of water lost from evaporation due to the additional lake surface area associated with the water in storage annually on a monthly timestep.

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Evaporation losses are applied proportional to each Agency's amount of water in storage.
(b) Water in storage in Lopez Reservoir shall be lost in the event the District determines that continuous spillway flow occurs at Lopez Dam that equals or exceeds the combined amount of water in storage in Lopez Reservoir on behalf of the Agency and Other Agencies. If the District determines that the spillway flow was less than the combined storage, then the water in storage in Lopez Reservoir lost by the Agency and Other Agencies shall be proportioned based on their respective amounts in storage in Lopez Reservoir and calculated such that the total water lost by the Agency and Other Agencies equals the District's determination of spillway flow. (c) Water in storage in Lopez Reservoir may be lost pursuant to Article 4(A) except that no water shall be lost from storage in Lopez Reservoir until after Entitlements made available to the Agency and Other Agencies pursuant to Article 4(B) equals zero and Surplus Water available to the Agency and Other Agencies pursuant to Article 4(D) equals zero. In such an event, the amount of water in storage in Lopez Reservoir that will be lost by the Agency and Other Agencies shall be proportioned based on Entitlements until each Agency's water in storage in Lopez Reservoir is reduced to zero or the required releases pursuant to Article 4(A) have been met, whichever occurs sooner.
(d) Water in storage in Lopez Reservoir may be lost because of a Force Majeure event. The water in storage in Lopez Reservoir lost by the

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Agency and Other Agencies shall be proportioned based on their respective amounts in storage in Lopez Reservoir.
(3) Stored Lopez Water may be transferred amongst the Agency and Other Agencies subject to provision of prior written authorization to the District by each Agency involved in the transfer.
(C) Storage of State Water Project Water. The Agency and Other Agencies that have the right to "wheel" State Water Project Water pursuant to Article 31 (State Water Project Subcontractors) shall have the right to increase the Project Water that they put into storage in Lopez Reservoir subject to the terms and conditions set forth herein. State Water Project Water put into storage in Lopez Reservoir shall be accomplished by way of exchanging the delivery of Project Water that would otherwise be furnished by the District to Other Agencies pursuant to Articles 4(B) and 4(D) with State Water Project Water provided by the Agency. There are two types of exchanges, namely District Initiated Exchanges and Agency Initiated Exchanges.
(1) District Initiated Exchanges - In consideration for the right to exchange Project Water with State Water Project Water, the Agency hereby grants to the District the right to exchange its State Water Project Water (if Agency is a State Water Project Subcontractor) with Project Water and deliver such exchanged water to Other Agencies during the "Curtailment of Delivery of Project Water for Maintenance Purposes" as provided in Article 13. Any exchange undertaken pursuant to Article 7(C)(1) shall be construed as an Agency exchange of State Water Project Water with Other Agencies and shall not be construed as a District sale or delivery of State Water Project Water to Other Agencies. Prior to initiating a District Initiated Exchange hereunder

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during Article 13 curtailments, Other Agencies must first request the District to effectuate the exchange and must agree to pay the Variable Costs of delivering the State Water Project Water to the Lopez system. Such District Initiated Exchanges are limited to the availability of State Water Project Water from the State Water Project Subcontractors and shall be proportioned between the State Water Project Subcontractors based on their available State Water Project Water. The quantities of water exchanged shall increase Project Water in storage for State Water Project Subcontractors and the District shall separately designate that water as "District Initiated Exchanged Water." Subsequent to any exchange hereunder, the District shall reverse the exchange as soon as possible with deliveries requested by State Water Project Subcontractors for State Water Project Water and the District shall reimburse the Other Agencies for the Variable Costs previously paid. The District Initiated Exchanged Water is not subject to evaporation losses. (2) Agency Initiated Exchanges. Water exchanged as a result of initiation by a State Water Project Water Subcontractor pursuant to this Article 7(C)(2) shall be separately designated by the District as Stored State Water Project Water and subject to the following additional terms:
(a) Evaporation losses shall be calculated by the District pursuant to Article 7(B)(2)(a).
(b) Stored State Water Project Water in Lopez Reservoir shall be lost in the event that the District determines that Continuous Spillway Flow occurs at Lopez Dam prior to the loss of any Project Water stored pursuant to Article 7(B). Water that has been put into

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storage in Lopez Reservoir by the District under its authority independent from the terms of the Contract shall be lost prior to losses of Agency Initiated Exchanged Water. In the event the District determines that the spillway flow reduces Stored State Water Project Water in storage in Lopez Reservoir, then the losses between State Water Project Subcontractors shall be proportioned based on their respective amounts of Stored State Water Project Water in Lopez Reservoir.
(c) Stored State Water Project Water in Lopez Reservoir is not subject to losses pursuant to Article 4(A).
(d) Stored State Water Project Water may be lost because of a Force Majeure event.
(e) Stored State Water Project Water may be transferred amongst the Agency and Other Agencies subject to the provision of prior written authorization to the District by each Agency involved in the transfer.

Article 8. Measurement. All water furnished pursuant to the Contract shall be measured by the District at each point of delivery established pursuant to Article 7 hereof with equipment satisfactory to the District and the Agency. Said equipment shall be installed, operated and maintained by the District. All determinations relative to the measuring of Project Water shall be made by the District and, upon request of the Agency, the accuracy of such measurement shall be investigated by the District and certified to the Agency in writing. Any error appearing in the course of such investigation and certification shall be

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cause for an adjustment by the District. The Agency may inspect any such measuring equipment for the purpose of determining the accuracy thereof, at its own expense at reasonable times upon reasonable notice. The District will install, or cause to be installed, backflow prevention devices in connection with such measuring equipment to prevent Project Water delivered to the Agency or to the Other Agencies from returning to the District's lines.

Article 9. Time for Delivery of Project Water. The amounts, times, and rates of delivery of Project Water to the Agency during any Water Year shall be in accordance with a water delivery schedule determined in the following manner:
(A) On or before October 1 of each Calendar Year, the Agency shall submit in writing to the District a preliminary water delivery schedule subject to the provisions of this Article and Article 4, indicating the amounts of Entitlement, and Agency Stored Lopez and Agency Stored State Water Project Water desired by the Agency during each month of the succeeding Water Year that is anticipated to be delivered to the address identified in Article 7.
(B) Upon receipt of a preliminary schedule, the District shall review and after consultation with the Agency shall make such modifications as are necessary to ensure that the amounts, times and rates of delivery to the Agency will be consistent with the available supply of water from the Project, considering the current delivery schedules of all Other Agencies.

On or before January 1 of each Calendar Year, the District shall determine and furnish to the Agency a water delivery schedule for the next succeeding Water Year, which shall show the amounts of water to be delivered to the Agency during each month of that Water Year.

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(C) Changes to a water delivery schedule, requested transfers, or Agency Initiated Exchanges may be implemented by the District upon the Agency's written request, and subject to (i) the circumstances described in Article 4(B) hereof and (ii) the pre-existing requirements of the District under the water delivery schedules with the Other Agencies for the same period of time. Proposed amendments to such schedules shall be submitted by the Agency on the first day of the month and will become effective the first day of the following month and shall be subject to review and modification by the District in the same manner as the preliminary water schedule described in paragraph (B) above. (D) In no event shall the District be obligated to deliver Project Water to the Agency at a combined instantaneous rate of flow exceeding 3.30 cubic feet per second.

However, if there is additional available capacity, the District shall make reasonable efforts to deliver the amount of water an Agency requests, taking into account Project capacity and Other Agency requests as well as pro rata shares of the Safe Yield.

Article 10. Responsibility for Delivery and Distribution of Water Beyond Delivery Points.

After Project Water has passed the delivery points established in accordance with Article 7 above, neither the District nor its officers, agents or employees shall be liable for the control, carriage, handling, use, disposal, distribution or changes occurring in the quality of such water supplied to the Agency or for a claim of damages of any nature whatsoever, including but not limited to property damage, personal injury or death, arising out of or connected with the control, carriage, handling, use, disposal, distribution or changes occurring in the quality of such water beyond said delivery points, and the Agency shall defend, indemnify and hold harmless the District and its officers, agents and employees

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from and against any such damages or claims of damage, except such damages or claims of damages caused by the sole proven negligence or willful misconduct of the District.

Article 11. Operation and Maintenance of Project and Water Enterprise. The parties hereto acknowledge and agree that the primary goal of the District shall be to maximize deliveries of Project Water consistent with multi-year water resource planning, subject to Safe Yield and cost considerations, as to which the District shall be expected to exercise sound business judgment.
(A) The District covenants and agrees that it will operate and maintain the Project as improved by the Seismic Remediation Improvements in accordance with all governmental laws, ordinances, approvals, rules, regulations and requirements, including, without limitation, such zoning, sanitary, pollution, environmental and safety ordinances and laws and such rules and regulations thereunder as may be binding upon the District.

The District further covenants and agrees that it will maintain and operate the Project and all pumps, machinery, conduits, apparatus, fixtures, fittings and equipment of any kind in or that shall be placed in any building or structure or made a part of any conduit or easement now or hereafter at any time constituting part of the Project in good repair, working order and condition, and that it will from time to time inspect and test all Project facilities against then-current water supply industry standards, and to pursue or recommend all necessary and proper replacements, repairs, renewals and improvements thereto. (B) In order to satisfy its covenants set forth in this Article, the District shall determine, prior to each Water Year, the amount of Capital Reserves necessary for the Project for the upcoming Water Year, shall prepare its draft annual budget by no later than March 1 to reflect such Capital Reserves, shall provide copies of each such budget to the Zone 3 Advisory

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Committee, the Agency and the Other Agencies for review and comment, prior to its distribution to and consideration by the County Board, and shall, if deemed necessary or advisable, develop and promulgate to the Agency and the Other Agencies a multi-year improvement plan for the Project, reflecting the annual requirements for Capital Reserves. (C) At any time, or from time to time, without the consent of the Agency or any Other Agency, the District shall be entitled to undertake the construction or equipping of any Additional Project or other improvements to or repairs of the Project not comprising a Type Ill Additional Project, but only if (i) it shall determine that such Additional Project, improvements or repairs are necessary in order to keep the Project functioning at the levels and to maintain the water supply at the quality required hereunder and under the other Contracts; or (ii) competent Governmental Authority shall direct such Additional Projects, improvements or repairs; provided that, before an Additional Project other than a Type Ill Additional Project, improvements or repairs may be ordered pursuant to direction of competent Governmental Authority, the District, the Agency and the Other Agencies shall be afforded notice thereof and the opportunity to oppose the imposition of such requirement before a court of competent jurisdiction; only if a final judgment is thereafter rendered, in favor of such Additional Project, improvements or repairs, or if no such opposition is filed, shall an Additional Project other than a Type Ill Additional Project, improvements or repairs be constructed or made pursuant to this clause (ii). Emergency repairs to the Project may, notwithstanding the above, be made by the District without the requirement of notice and opportunity to oppose described herein. It is the intention of the parties hereto that the District shall, as and when necessary, be deemed to assign its rights to pursue opposition to the creation of any obligations hereunder by a Governmental Authority to the Agency and/or the Other Agencies, as their interests may

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appear, in recognition of the status of the Agency and the Other Agencies as third-party beneficiaries hereof and real parties in interest. No preexisting right of the Agency or the Other Agencies to pursue actions administratively, by law or in equity associated with the construction, maintenance and operation of the Project shall be abrogated by the Agency or such Other Agencies by its or their execution of the Contract or the other Contracts. (D) For its part, the Agency covenants and agrees:
(1) not to sell, lease or otherwise dispose of its Water Enterprise or any part thereof essential to the proper operation thereof or to the earning or collection of the gross revenues of the Water Enterprise, nor to enter into any agreement or lease which would impair the operation of the Water Enterprise or any part thereof necessary in order to secure adequate revenues for the payment of amounts due under the Contract; provided, however, that any real or personal property which has become nonfunctional or obsolete or which is not needed for the efficient operation of the Water Enterprise may be sold or disposed of if such disposition will not have the effect of reducing revenues of the Water Enterprise below the levels required under the Contract;
(2) to maintain and preserve the Water Enterprise in good repair and working order at all times, operate the same in an efficient and economical manner and pay all operation and maintenance costs of the Water Enterprise as they become due;
(3) not later than the first day of each Fiscal Year, to adopt and make available to the District a budget approved by its governing board setting forth the amounts budgeted to be paid under the Contract;

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(4) to comply with, keep, obseNe and perform all agreements, conditions, covenants and terms, express or implied, required to be performed by it contained in all contracts for the use of the Water Enterprise and all other contracts affecting or involving the Water Enterprise to the extent that the Agency is a party thereto;
(5) not to create or allow any lien on or payment from the revenues of the Water Enterprise or any part thereof prior to or superior to its obligation to pay amounts payable under the Contract;
(6) to procure and maintain such insurance relating to the Water Enterprise which it shall deem advisable or necessary to protect its interests, which insurance shall afford protection in such amounts and against such risks as are usually covered in connection with similar water enterprises in the State; provided, that the Agency shall not be required to procure or maintain any such insurance unless such insurance is commercially available at reasonable cost; and provided further, that any such insurance may be maintained under a self-insurance program, so long as such self-insurance program is maintained in accordance with standards and in such amounts as are then usually maintained for similar water enterprises in the State;
(7) to pay and discharge all taxes, assessments and others governmental charges which may hereafter be lawfully imposed upon the Water Enterprise or any part thereof when the same shall become due; duly obseNe and conform with all valid regulations and requirements of any governmental authority relative to the operation of the Water Enterprise, that are not being contested in good faith; and

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(8) if all or any material part of the Water Enterprise shall be taken by eminent domain proceedings, or if the Agency receives any insurance proceeds resulting from a casualty loss to any material portion of the Water Enterprise, the proceeds thereof shall be used to construct or install replacements for the condemned or destroyed components of the Water Enterprise or to prepay the Agency's share of Debt Service under the Contract.

Article 12. Water Quality. All water delivered to the Agency under the Contract shall meet all State and San Luis Obispo County minimum water quality standards for water for domestic use.

Article 13. Curtailment of Delivery of Project Water for Maintenance Purposes. The District may temporarily discontinue or reduce the amount of water to be furnished to the Agency for purposes of maintaining, repairing, replacing and investigating or inspecting, any of the facilities necessary for the furnishing of Project Water to the Agency hereunder. Insofar as it is feasible, the District will give the Agency advance notice of any such temporary discontinuance or reduction, except in the case of emergency, in which case no advance notice need be given.

In the event of such discontinuance or reduction, the District will apply its best efforts to minimize the duration and severity of service interruption hereunder and shall, as nearly as possible, make available to the Agency Project Water sufficient to make up for any shortfall in deliveries of water to the Agency during the period of curtailment.

Article 14. Rate and Method of Payment. Commencing with the first Water Year during which Project Water is made available to the Agency hereunder, the Agency shall pay to the District in advance and on "a semiannual basis, its Contract Payments, calculated and paid in accordance

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with the further provisions of this Article, for the Project Water made available under this Contract for such Water Year.
(A) Allocation ofTotal Project Costs and Debt Service. On or before April 1 of each Calendar Year, the District shall calculate, or cause to be calculated, Total Project Costs for the Fiscal Year commencing on the immediately following July 1. The District shall deduct from the calculated Total Project Costs for such Fiscal Year: (1) the general ad valorem property taxes to be received by the District during the Fiscal Year in question; provided that any ad valorem taxes levied and paid to provide debt service on the District's General Obligation Bonds outstanding at any time shall be restricted to use for the payment of debt service on such General Obligation Bonds and shall not be included in the deducted amount represented by the foregoing clause; and (2) a sum equal to Recreational Use Revenues received by the District during the Fiscal Year about to be concluded. The result shall comprise the Total Contract Payments due, collectively, from the Agency hereunder and from the Other Agencies under their respective Water Supply Contracts.

In determining the Debt Service portion of Total Project Costs during any Fiscal Year to be supported by the Agency, the District shall make the following calculations:
• [(G.O. Debt Service)+ (Installment Debt Service)+ (SRF Loan Debt Service] - (District Revenues)= Allocable Debt Service ("ADS")
• [(Proportionate Share) x ADS] = Annual Agency Obligations ("AAO") • AAO - (G.O. Tax Collections) = Agency Debt Service
For purposes of the above calculations, the term "G.O. Debt Service" above refers to the debt service on the District's General Obligation Bonds; the term "Installment Debt Service" refers to the installment payments due with respect to the Tax-Exempt Obligations; the term

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"SRF Loan Debt Service" refers to the payments due with respect to the SRF Loan; the term "Proportionate Share" refers to the Agency's Proportionate Share hereunder; the term "District Revenues" refers to the amounts available to the District under the second sentence of this paragraph (A) of Article 14; and the term "G.O. Tax Collections" refers to amounts collected to support the General Obligation Bonds within the boundaries of the Agency during the Fiscal Year in question, based upon then-current levies; provided, however, that in the case of County Service Area No. 12, such boundaries shall be deemed to include that area comprising Avila Beach Community Services. District, as well as the area comprising such County Service Area No. 12. In no event shall Agency Debt Service, as calculated above, be a figure less than zero. The foregoing calculations shall be performed by the District each Fiscal Year and shall be made available to the Agency with respect to each Other Agency, as well.

No more frequently than annually, the District shall retain a certified public accountant, or firm thereof, with the approval of the Zone 3 Advisory Board, which shall be responsible for reviewing and confirming the Agency Debt Service figu res resulting from the foregoing calculations, and reporting the same to the Agency, the District and each Other Agency.
(B) Agency Contract Payments. Unless the Agency shall, in accordance with paragraph (C) below, be entitled to an offsetting credit, the Agency shall be obligated to pay to the District:
(1) on or before July 1 and the immediately following January 1 of each Fiscal Year, a sum equal to one-half of its Percentage Share of charges for Operation and Maintenance Costs and Capital Reserves for such Fiscal Year;

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(2) on or before July 1 of each Fiscal Year, a sum equal to Agency Debt Service, as calculated under paragraph (A) above; and (3) on or before July 1 and the immediately following January 1 of each Fiscal Year, the Variable Charge calculated in accordance with paragraph (D) below.
(C) Agency Credits against Contract Payments. The following shall constitute credits against the obligations of the Agency to pay Contract Payments to the District:
(1) (a) If, prior to the date upon which the District causes the Tax-Exempt Obligations to be sold, the Agency shall contribute, in cash, a sum for its Proportionate Share of the total amount of costs and expenses projected by the District as the basis for the Seismic Remediation Project, or any portion of its Proportionate Share, so that the aggregate principal component of the Tax-Exempt Obligations is reduced by such sum, the Agency's Proportionate Share of Debt Service, and therefore, of Total Project Costs, shall be reduced accordingly; and
(b) If the Agency shall, following the date of delivery of the Tax-Exempt Obligations, successfully implement a financing plan within its jurisdiction to fund all or a portion of Debt Service during the term of the Tax-Exempt Obligations through the levy of ad valorem property taxes, special assessments or special taxes, then the Agency shall be entitled to a credit from amounts paid under such levy as though such amounts were paid directly by the Agency hereunder, subject to the prior approval of each rating agency then rating the Tax-Exempt Obligations and any bond insurer then providing insurance

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therefor; provided, however, that the District shall be made a third-party beneficiary of any pledge of such alternate source of revenues, with the power to enforce collection thereof, in the event the Agency should fail to do so; and (c) The Agency shall be entitled to a credit equal to a Percentage Share of the net revenues the District shall have received from the sale of Surplus Water and from the delivery of any water wheeled for Wheeling Customers, as defined in and pursuant to the provisions of Article 31, during the Fiscal Year in question; in determining the amount of such wheeling credits against the obligations of the Agency hereunder, the District shall apportion its net revenues from the foregoing sources, taking into account the particular Unit or Units through which delivery of Surplus Water or wheeled water was made, and shall compare the Agency's Percentage Share for such Unit or Units wit h the aggregate Percentage Share for all Other Agencies and the Agency for such Unit or Units. (2) On or before December 1 of each year, the District shall deliver to the Agency a statement as to the actual Operation and Maintenance Costs, Variable Charges, and Capital Reserve charges incurred or imposed during the Fiscal Year most recently concluded, and shall set forth in such statement its determination as to whether the amounts theretofore paid by the Agency as its Percentage Share of estimated charges for Operation and Maintenance Costs, Variable Charges, and for Capital Reserves were in excess of or less than its Percentage Share of such costs and charges for the Fiscal Year most recently concluded. If the Agency shall have paid less than its Percentage Share of actual Operation and Maintenance Costs, Variable Charges, and charges for Capital Reserves for such Fiscal Year, the Agency

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shall remit the difference to the District within (180) days of the date upon which it receives such a statement; if the Agency shall have paid more than its Percentage Share of such costs and charges for such Fiscal Year, the District shall rebate the difference to the Agency promptly following its delivery of the closing statement, and, in any event, within thirty (30) days thereafter.
(D) Variable Charges. The sum of Variable Charges to the Agency and the Other Agencies shall be an amount which is estimated to be sufficient to compensate the District for actual Project pumping energy and chemical charges incurred. The Variable Charge shall be determined for each Fiscal Year during which Project Water is made available to the Agency under the Contract by (1) dividing the District's actual cost of pumping energy and chemical charges during that Fiscal Year by the total acre-feet of Project Water delivered by the District during such Fiscal Year to the Agency and all Other Agencies pursuant to the Contract and the other Contracts, and (2) multiplying this acre-foot charge by the number of acre-feet of Project Water delivered by the District to the Agency during such Fiscal Year. (E) Use by District of Total Contract Payments. During the term of the Contract and of the other Contracts, the District shall proceed with due diligence to collect Total Contract Payments as and when due, and shall apply amounts collected in the following order of priority:
(1) to the payment of Operation and Maintenance Costs;
(2) to the payment of Debt Service with respect to the Tax-Exempt Obligations;
(3) to the payment of Debt Service with respect to the SRF Loan; and

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(4) to the replenishment or funding of Capital Reserves for the Project, in accordance with the provisions set forth in Article 10 hereof.

Article 15. Take-or-Pay Obligation of Agency. Commencing on the first date upon which Project Water is provided under the Contract, the Agency shall pay all amounts due hereunder, including, without limitation, under Article 14 hereof, without reduction or offset of any kind, whether or not the Project or any part thereof is then operating or operable or its service is suspended, interfered with, reduced or curtailed or terminated in whole or in part, due to any of the reasons outlined in Articles 4(B), 5 and 13 or otherwise, and such Agency payments shall not be conditional upon the performance or nonperformance by any party for any cause whatsoever, including the Other Agencies; provided, however, that savings from nonoperation of the Project shall be apportioned among the Agency and the Other Agencies in accordance with their Percentage Shares.

The Agency's failure or refusal to accept delivery of Project Water, or to put water into storage, to which it is entitled under the Contract shall in no way rel ieve the Agency of its obligation to make payments to the District as provided for herein.

Article 16. Pledge: Establishment and Collection of Rates and Charges. The Agency, unless it shall have paid cash as its share of the Total Project Costs, as provided in Article 14(C)(1) hereof, hereby pledges gross water sale revenues of its Water Enterprise to its obligations under the Contract, and covenants and agrees to establish, fix and collect Rates and Charges from the customers of its Water Enterprise at levels sufficient to produce revenues from the Water Enterprise at least equal to (A) the costs of operating and maintaining the Water Enterprise, plus (B) the Agency's Contract Payments, calculated in accordance with Article 14(B) hereof, including (C) the Agency's Proportionate Share of Debt Service, plus (D) the Coverage Factor for

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the Debt Service portion of the Agency's Contract Payments; provided, however, that the provisions of Article 21 (C) hereof may impose upon the Agency a surcharge following the occurrence of any payment default by the Agency. The Agency acknowledges and agrees that its obligations hereunder shall comprise, for accounting purposes, an operation and maintenance expense of its Water Enterprise.

Article 17. Default.
(A) The following shall constitute events of default hereunder:
(1) The Agency shall fail to make timely payment in full of all amounts due from the Agency under the terms of the Contract; or (2) The Agency shall fail to establish or collect, or cause to be collected, all fees, charges and other sums necessary to enable it to make the payments required hereunder, as provided in Article 16 hereof, and following thirty (30) days' written notice from the District to the Agency, shall fail to remedy such failure to the satisfaction of the District; or (3) The Agency shall fail to perform any other obligation or covenant hereunder and shall fail to remedy such failure to the satisfaction of the District within thirty (30) days following the Agency's receipt of written notice from the District, or for such additional time as is reasonably required, in the sole discretion of the District, to correct the same; or
(4) The Agency shall file any petition or institute any proceedings under any act or acts, State or federal, dealing with or relating to the subject of bankruptcy or insolvency or under any amendment to such act or acts, either as a bankrupt or as an insolvent or as a debtor or in any similar capacity, wherein or

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whereby the Agency seeks or prays to be adjudicated bankrupt or is to be discharged from any or all of its debts or obligations, or offers a reorganization of its obligations for the benefit of creditors, or asks for similar relief. (B) Upon the occurrence of an event of default hereunder, the District shall be entitled to proceed to protect and enforce the rights vested in the District by the Contract by appropriate judicial proceedings as the District may deem most effective, either in equity or law. Without limiting the generality of the foregoing, the District shall be entitled to pursue any of the following remedies:
(1) The District may suspend the delivery of water hereunder during the period when the Agency is delinquent in its payment for or other obligations to the District hereunder, but only following notice to the Agency and the imposition of such remedy following a formal hearing conducted by the County Board; (2) The District may compel the Agency, or its governing board, by action or suit in equity to account to the District as the trustee of an express trust;
(3) The District may pursue by action or suit in equity to enjoin any acts or things which may be unlawful or in violation of the rights of the District hereunder; and
(4) The District may proceed in mandamus or other suit, action or proceeding at law or in equity to enforce its rights against the Agency (and its board, officers, agents and employees) and to compel the Agency to perform and carry out its duties and obligations under the law and its covenants and obligations as set forth herein.

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The use by either party to the Contract of any remedy specified herein for the enforcement of the Contract is not exclusive and shall not deprive the party using such remedy of, or limit the application of, any other remedy provide hereunder or by law or equity.
(C) Upon each charge to be paid by the Agency to the District pursuant to the Contract which remains unpaid after the same shall have become due and payable, interest shall accrue at an annual rate equal to that earned by the County Treasurer's investment fund as provided in Government Code Section 16480 et seq. calculated monthly on the amount of such delinquent payment from and after the due date when the same becomes due until paid, and the Agency hereby agrees to pay such interest; provided, that no interest shall be charged to or be paid by the Agency unless such delinquency continues for more than thirty (30) days. The Agency hereby agrees to pay such interest to the District, whether or not the District shall pursue any of the remedies specified in this Article.

In no event shall default interest be compounded.

Article 18. Failure to Levy. Set or Collect Taxes. Rates and Charges: Establishment of Coverage Account. If the Agency for any reason shall fail or refuse to establish or levy taxes or Rates and Charges sufficient to satisfy the requirements of Article 16 hereof, or if the Agency shall be precluded from establishing rates and charges at the levels required in said Article 16, then the Agency shall promptly notify the District of such fact, in writing, and shall establish either (a) with the District; or (b) with a Depository designated by the Agency to the District in writing; a Coverage Account, into which the Agency shall deposit, from the first lawfully available funds therefor, an amount equal to one year's Coverage Factor for the Debt Service portion of the Agency's Contract Payments hereunder. The Coverage Account shall be invested

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in accordance with applicable provisions of the Government Code, subject to any limitations established pursuant to Section 148 of the Internal Revenue Code of 1986, as amended, applicable to surplus moneys of the Agency and shall be and remain available to the Agency and to the District as a source of funds to remedy any shortfall in the payment of Agency Contract Payments hereunder. The Coverage Account shall be pledged to the District for the purposes described herein, and the Agency covenants and agrees to execute such instruments as may be necessary in order to effect a pledge of amounts on deposit in the Coverage Account, acknowledging and agreeing as well to follow the advice of special tax counsel to the District in connection with the pledge and investment of the Coverage Account, as may be necessary or advisable in order to maintain the tax status of the Tax-Exempt Obligations.

If at any time following the establishment of the Coverage Account hereunder, the Agency shall again be able to and shall collect rates and charges as required under Article 16 hereof, the Coverage Account may be released to the credit and name of the Agency for any lawful purpose thereof, upon delivery to the District of evidence satisfactory to the District that (i) the Agency has successfully levied rates and charges for its Water Enterprise at the appropriate levels for at least one full Fiscal or Water Year since the Coverage Account was first created, and (ii) the Agency is then current on all payments due under the Contract; whereupon, the District shall either release the Coverage Account to the Agency or shall direct the Depository to do so, free from the lien described herein.

Article 19. Area Served by Agency. Water delivered to the Agency pursuant to the Contract shall not be sold or otherwise disposed of by the Agency for use outside the boundaries of Zone 3 as they may now or hereafter exist, without the prior written consent of the District.

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Article 20. Changes in Organization of Agency. The Agency will furnish the District with maps showing the territorial limits of the Agency and the service area or areas of its water distribution system. Throughout the term of the Contract, the Agency will promptly notify the District of any changes, either by inclusion or exclusion, in said territorial limits and service area or areas.

The Agency shall take no action to exclude any lands from the Agency or its service area or areas without the prior written consent of the District.

Article 21 . Agency's Obligations Several and Not !oint: Limited Step-up Provisions and Reimbursement.
(A) Except as provided in paragraph (B) of this Article, the Agency and the Other Agencies shall be solely responsible and liable for performance under the Contract or under the other Contracts, as applicable. Their obligations to the District to make payments under the Contract and the other Contracts are expressly recognized by the District as several, and not joint, and no default on the part of one of the Other Agencies shall, in and of itself, create an event of default hereunder. The Coverage Account of the Agency, if any is established hereunder, shall not be available for any shortfall in payments under any of the other Contracts, unless otherwise directed or approved in writing by the Agency. (B) In the event that the Agency or any Other Agency (each, a "Delinquent Agency") shall fail to pay its Contract Payments hereunder or under the Other Agency's Contract, as appropriate, for any reason, then the Contract Payments for each non-delinquent agency (each, a "Non-Delinquent Agency") then participating in the Project shall be increased for the particular Water Year by an amount equal to the sum of Contract Payments not paid in full by Delinquent Agencies (collectively, the "Shortfall"); provided, however, that Non-Delinquent Agencies shall contribute to the Shortfall in a

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proportion determined by dividing the Debt Service portion of the Contract Payments attributable to each particular Non-Defaulting Agency by the aggregate Debt Service portions of the Contract Payments attributable to all Non-Defaulting Agencies; and provided further, that the Agency in no event shall be required under this paragraph to contribute to the Shortfall by an amount in any Water Year exceeding the amount which is 20% of the portion of the Agency's Contract Payments representing Debt Service for that Water Year. (C) If payments are made by Non-Delinquent Agencies under the foregoing paragraph (B) during any Water Year, the District shall, beginning on the first date upon which payments are due from a Delinquent Agency and not paid in accordance with its Contract (each, a "Due Date"), declare a default as to such Delinquent Agency under its Contract and shall be entitled to curtail all deliveries of Project Water under such Contract and Delinquent Agency shall not be allowed to put water into storage in Lopez Reservoir but may keep any water already in storage; notwithstanding the foregoing, such Delinquent Agency shall nonetheless continue to be obligated under its Contract for amounts paid on its behalf by the Non-Delinquent Agencies, until it has reimbursed each Non-Delinquent Agency in full. Amounts advanced by the Non-Delinquent Agencies hereunder are immediately due and payable by the responsible Delinquent Agency, and, if not so paid, and notwithstanding the provisions of Article 17(C), incur interest on the unpaid portion until paid in full at a rate per annum equal to the average rate for the County Treasury Pool, plus two percent (2.0%) per annum, for the month for which the County Treasury Pool rate was most recently calculated, based on a 360-day year of twelve 30-day months; provided, however, that payments to be made as reimbursements under this paragraph (C) are deemed and understood to be subordinate to the obligations of the Delinquent Agencies to pay their Proportionate Shares of Debt Service.

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(D) Shortfalls in Total Contract Payments shall be remedied under this Article prior to the District's making any withdrawal from the debt service reserve fund established, or under the reserve surety bond posted, for the Tax-Exempt Obligations, if any, drawings on or under which shall be delayed until and unless insufficient moneys are available from Non-Defaulting Agencies hereunder.
(E) The District covenants and agrees to enforce the provisions of the Contract with due diligence, including, without limitation, the provisions of this Section for the benefit of the owners, from time to time, of the Tax-Exempt Obligations.

Article 22. Contracts to Be Uniform. The Contracts executed by the District with the Other Agencies shall be substantially uniform with respect to basic terms and conditions, when compared with the Contract, but shall provide for different dates, quantities of water to be delivered, water delivery points, Proportionate Shares and Percentage Shares and payment amounts.

Article 23. Amendments. The Contract shall be subject to amendment at any time by mutual agreement of the parties hereto, except insofar as any proposed amendments are in any way contrary to applicable law or would have a material adverse effect upon the owners of any of the Tax-Exempt Obligations. As a condition to any amendment to the Contract or to the other Contracts, the District shall first have received written confirmation from the rating agency or agencies then providing a rating for the Tax-Exempt Obligations, to the effect that the proposed amendments will not adversely affect the rating of the Tax-Exempt Obligations and, in the event that the Tax-Exempt Obligations, or any portion thereof, shall be covered by municipal bond insurance, the District shall have received prior written consent to such

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proposed amendments from the provider of such bond insurance. Amendments may be effected upon the following conditions:
(A) Amendments to the Contract or the other Contracts which have the effect of replacing the Agency's or any Other Agency's Proportionate Share of Project Water or Percentage Share of Total Contract Payments with water purchases by or revenues contributed from either (i) the Agency or some Other Agency or (ii) a new customer, shall be subject to the approval only of those entities whose Proportionate Shares or Percentage Shares will be affected, and the District.
(B) Upon the written request of the Agency or any Other Agency, the District may order the construction or equipping of any Type Ill Additional Project; provided, however, that the requesting Agency or Other Agency shall first demonstrate to the satisfaction of the District that either (i) the proposed Type Ill Additional Project will be economically feasible with the financial support of only the requesting Agency and/or Other Agencies who voluntarily participate (whose Percentage Shares will thereafter be appropriately adjusted); or (ii) the Agency and all of the Other Agencies will consent to the funding of the Type Ill Additional Project and will agree to increase Total Project Costs sufficiently to provide for the costs thereof. The financing of a Type Ill Additional Project may be accomplished through the levy of additional Capital Reserves, the issuance of additional bonds or other evidence of indebtedness or otherwise. The undertaking ofType I or Type 11 Additional Projects shall not require the consent of the Agency or any Other Agency nor the amendment of the Contract.

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(C) Amendments to the Contract and to the other Contracts other than those specified above shall be approved only upon the prior written and unanimous consent of the District, the Agency and all Other Agencies.

Article 24. Opinions and Determinations: Good Faith: Information to Be Provided to Zone 3 Advisory Committee.
(A) Where the terms of the Contract provide for action to be based upon opinion, judgment, approval, review or determination of either party hereto, such terms are not intended to and shall never be construed to permit such opinion, judgment, approval, review of determination to be arbitrary, capricious or unreasonable. The District and the Agency shall each act in good faith in performing their respective obligations as set forth in the Contract.
(B) The Zone 3 Advisory Committee, created by appointment of designated representatives made by the Agency, each Other Agency and the District, is hereby continued for the purpose of advising the District regarding administrative and operational concerns affecting the Project. The District covenants and agrees to present to the Zone 3 Advisory Committee, at its regularly scheduled or specially called meetings, the following items for advice and comment, in each case, prior to final presentation of the same item to the County Board:
i. the annual budgets for the District;
ii. the approval of each non-emergency Capital Project which has not theretofore been included in an annual budget of the District; it being understood and agreed that emergency repairs and improvements shall be exempt from any requirement for preview established hereby; and

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iii. the mid-year review of actual fiscal performance of the Project, provided for the then-current Fiscal Year, and in any event, prior to March 31 of each calendar year, which may, to the extent practicable, be combined with the review of the District's annual budget for the next Fiscal Year.
iv. any future Habitat Conservation Plan or implementing agreement for Arroyo Grande Creek that would affect operation of the Project. v. amendments to the methodology or formula established in County Board Resolution No. 2000-133, adopted April 4, 2000, with respect to the making of Recreational Budget Transfers.

Article 25. Waiver of Rights. Any waiver at any time by either party hereto of its rights with respect to a breach or default, or any other matter arising in connection with the Contract, shall not be deemed to be a waiver with respect to any other breach, default or matter hereunder, nor as to a breach or default occurring or having occurred under any other Contract.

Article 26. Notices. All notices that are required either expressly or by implication to be given by either party to the other under the Contract shall, if given in writing, be executed on behalf of the District or for the Agency by such authorized officers as they may each, from time to time, authorize in writing for such purposes. All notices shall be deemed to have been given and delivered if delivered personally or if deposited, postage prepaid, with the United States Postal Service for delivery. Unless and until formally notified otherwise, all notices shall be addressed to the parties at their addresses shown on the signature page of the Contract; provided, however, that either party may give written notice to the other of a change in such notice address.

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Article 27. Assignment: Pledge. The provisions of the Contract shall apply to and bind the successors and assigns of the respective parties, including any assignee hereof designated in connection with the execution and delivery of the Tax-Exempt Obligations, but no assignment or transfer of the Contract by the Agency, or any part hereof or interest herein, shall be valid until and unless approved by the District; provided, however, that no further assignment by the District shall be valid until and unless approved by the Agency and all of the Other Agencies; and provided further, that, so long as any Tax-Exempt Obligations are outstanding, no such assignment shall be effective until such time as the District has received assurances from each rating agency then rating the Tax-Exempt Obligations, to the effect that such transfer shall not adversely affect the rating on the Tax-Exempt Obligations, and, so long as any Tax-Exempt Obligations are then being insured by a municipal bond insurance company, until such time as the District has received the written consent from such bond insurer as to such assignment.

The Agency understands and acknowledges that the District intends to pledge amounts received and to be received hereunder and under the other Contracts to a financial institution and/or nonprofit corporation as further support for its obligations under the Tax-Exempt Obligations.

Article 28. Inspection of Books and Records. The authorized officers of the Agency shall have full and free access at all reasonable times to the account books and official records of the District insofar as the same pertain to the matters and services provided for in the Contract, with the right at any time during regular office hours of the District to make copies thereof at the Agency's expense, and the authorized officers of the District shall have similar rights with respect to the account books and records of the Agency for its Water Enterprise.

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Article 29. Severability. Any provision of the Contract that is prohibited, unenforceable or not authorized in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition, unenforceability, or non-authorization without invalidating the remaining provisions hereof or affecting the validity, enforceability of legality of such provision in any other jurisdiction.

Article 30. Water Rights. No provision of the Contract shall be considered to be in derogation of any existing waiver of right(s) or claim(s) to water right(s) by or any agreements concerning water rights of either party hereof, including but not limited to overlying, prescriptive, appropriative, riparian, or pueblo rights, nor shall it be construed to result in any relinquishment or adjustment of any such water rights or claims thereof; and, in particular, no provision of this Contract shall be considered to diminish, reduce or affect, in any way, either party's rights pursuant to California Water Code Section 1005.1 and/or Section 1005.2.

Article 31. Wheeling of Water. As used in this Article, the term "Existing Contractor" shall refer to the Agency and any Other Agencies presently having a contract with the District for the delivery of Project Water; any person other than an Existing Contractor which shall arrange for the delivery of water other than Project Water from the District under the terms hereof shall be described as a "Wheeling Customer." The Agency, as an Existing Contractor, shall be entitled to have additional water wheeled to it by the District through the various Units of the Project, at the actual cost of such wheeling, determined in accordance with the terms and conditions of the existing contracts by and between the District and the Agency or Other Agencies for the delivery of State Water Project Water to the Agency or Other Agencies through the Project.

If at any time during the term of the Contract, the District delivers water, other than Project Water, through any Unit of the Project to any Wheeling Customer, said Wheeling

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Customer shall be required to pay for such delivery service in a manner and at prices which will return to the District the largest net revenue practicable, but in no event shall such deliveries be effected at charges less than those applicable to the delivery of Project Water to the Agency through the same Unit or Units.

In determining the appropriate charges for water delivered to a Wheeling Customer hereunder, the District shall take into account the particular Unit or Units through which delivery of such water is made, shall compare the Operation and Maintenance Costs and Debt Service costs apportionable to such Unit or Units with Total Project Costs, and shall further compare the amount of water delivered to Wheeling Customers through such Unit or Units with the amount of Project Water delivered to Existing Contractors through such Unit or Units for the same period of time.

In calculating credits to the Existing Contractors from the delivery of water to Wheeling Customers under the Contract and the other Water Supply Contracts, the District shall apportion such credits according to the Unit or Units through which such water was in fact delivered, as described in the preceding paragraph.

The provisions of this Article shall be subject to any contracts which the District may execute with the United States of America for any grants from the Department of Housing and Urban Development.

Article 32. Execution in Counterparts. The Contract may be executed in several counterparts, each of which shall be regarded as an original and all of which shall constitute but one and the same document.

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Article 33. Governing Law. The Contract shall be interpreted, governed, and enforced in accordance with the laws of the State of California applicable to contracts made and performed in such State.

Article 34. Re-Funding Related Provisions. The Agency concurs with the recommendation of the District to effect a refunding of the Tax-Exempt Obligations and the General Obligation Bonds issued in connection with the SLO County Financing Authority Lopez Dam Improvement Revenue Bonds, 2000 Series A and agrees to take all appropriate action in support of the issuance of the Refunding Bonds, as recommended by the District, its Bond Counsel, being Fulbright &Jaworski L.L.P., and its Financial Advisor, being Public Financial Management. In particular, the Agency understands and agrees that it will have incurred additional continuing disclosure obligations with respect to the Refunding Bonds, as more particularly described in the Continuing Disclosure Agreement to be executed in connection with the Refunding Bonds, pursuant to Rule 1 Sc2-12 of the Securities and Exchange Commission. The Agency concurs with the recommendation of the District to effect a refunding of the Tax-Exempt Obligations and the General Obligation Bonds issued in connection with the SLO County Financing Authority Lopez Dam Improvement Refunding Revenue Bonds, 2011 Series A (the "2011 Series A Bonds") and agrees to take all appropriate action in support of the issuance of Refunding Bonds, as recommended by the District, its Bond Counsel, being Norton Rose Fulbright US LLP, and its Financial Advisor, being KNN Public Finance, LLC, provided, however, the Refunding Bonds shall result in a minimum 3% present value total debt service savings reduction and lower annual debt service payments in every year (inclusive of any costs associated with the refinancing and the term of the Refunding Bonds shall not extend beyond the term of

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the 2011 Series A Bonds of August 1, 2030. In particular, the Agency understands and agrees that it will have incurred additional disclosure obligations with respect to the Refunding Bonds; provided the disclosure obligations of the Agency shall be no more extensive than those in connection with the 2011 Series A Bonds under federal securities laws and Securities and Exchange Commission Rule 15c2-12.

In the event that Agency is unable to meet its obligation to provide certain financial and operating data relating to such Agency, and is therefore unable to meet all acts, conditions and things required by law to be done or performed in strict conformity with the laws authorizing the issuance of general obligation refunding bonds, then the District may provide an amount (the "Advance") necessary to effectuate a refunding of the installment purchase portion of the original Tax-Exempt Obligations attributable to the Agency (the "Agency's Installment Purchase Obligation") on the scheduled closing date for the refunding bonds. Such an Advance by the District shall be considered a loan to the Agency, and the Agency shall thereafter be obligated to continue to make payments to the ~·· .. 1 ' ,,~ f ... ,. • ' ' -I ' ~ ( . .. .,.. • ,. - -,f • • ..

District in accordance with the original Agency Debt Service schedul"e· r'elated to the Agency's Installment Purchase Obligation as though the original Tax-Exempt Obligation I ff' •.,. ' I :;.- "f '"• •~..._f
had never been refunded until such time as the Advance, plus interest accrued thereon at the interest rate applicable to the original Tax-Exempt Obligations, shall be repaid to the District in full.

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IN WITNESS WHEREOF, the parties hereto have executed this Contract on the dates set forth below.

APPROVED AS TO FORM :

County Counsel
BY: ~~Counsel
ATTEST:

SAN LUIS OBISPO COUNTY

FLOOD CONTROL AND WATER
CONSERVATION ~TRIY• 8
BY: 6 ' l, 1)M!-,tv--
Chair, Board of Supervisors
Date: li0tJ l.4Sf 2,:!>,t ZC't/l/
Address for Notices:

Department of Public Works
County Government Center
San Luis Obispo, California 93408
Attn: Director of Public Works
a.. -' -"' sa.--rvi.so't"'S County Clerk of 4+\e. ~d.'""' U"f -rBY: J 1 {UJ )1 1,l, /j(/),1 Deputy Cle""' of .ff,,ti &o.nl
The undersigned Deputy Clerk of the Board of Supervisors certifies that, pursuant to S~ction 25103 of the
Government Code, delivery of \~ts docua t has been
made on t\id~i4St 2'1, 2U

WADE HORTON
County Clerk of the Board and Ex~Officio Clerk
of the Board of Supervisors
ltw ,1uiliYi By, _ _J _ _J~~~- S ~k~ ..:----
Deputy Cler

THE CITY OF ARROYO GRANDE
BY: ________ _
Mayor
Address for Notices:
300 East Branch Street
Arroyo Grande, CA 93420
Attn: City Manager

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ATTEST:

BY: ________ _
APPROVED AS TO FORM:

City Attorney
BY: ------------
Timothy J. Carmel
L:\Utilities\2022\August\BOS\Zone 3 Amended Restated Contracts\Zone 3 Agency Contracts\Zone 3 2022 Contract_ The City of Arroyo Grande.docx.JO.sc

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EXHIBIT A- THE PROJECT
Alluvium Strengthening
A portion of the downstream shell of Lopez Dam will be removed temporarily to allow access for strengthening of the foundation with stone columns.' The area of alluvium to be excavated would extend about 150 feet downstream from the existing toe of the dam, and the excavation would be to approximately elevation 340 feet in the center and to 370 feet on the sides. The total volume of excavated materials to be temporarily stored is estimated to be 400,000 to 500,000 cubic yards (cy). This includes the topsoil, which will be salvaged and stored separately. During excavation of the alluvium and installation of the stone columns, groundwater will need to be lowered as much as 30 feet in the excavation area. In addition, the outlet control building, portions of the associated piping, and the outflow channels connecting to Arroyo Grande Creek will need to be relocated downstream prior to the excavation, or a temporary bypass will need to be constructed, so that the outlet works can remain operational during the work. The bypass flows could enter the creek either through an existing pipe that discharges at the County property line (about 1,000 feet downstream) or at a location developed by the construction contractor near the western edge of the abandoned trout farm ponds. The outlet control building will be moved approximately 300 feet west along the access road while the channels will be moved into either one or two new channels 50 to 200 feet downstream from the existing discharge location.

Stone columns will be installed using a crane-operated vibrating probe. The vibration acts to densify and strengthen the ground, and the stone columns provide additional strength.

Approximately 2000 columns, approximately 3 to 4 feet in diameter, will be installed in a triangular' pattern with the columns spaced at approximately 7 to 9 feet on centers. The area of installation will extend from abutment to abutment (approximately 570 feet) and be about 200 feet in width (upstream/downstream distance) under the existing berm of the downstream shell. Gravel material for the stone columns (65,000 to 75,000 cy) will be imported by truck throughout the process.

The downstream berm, including the fi lter/drain material, will be replaced after the columns are installed using the material removed and stored as well as additional filter/drain material imported from a commercial source. Additional buttress material will be placed over the downstream shell after the stone columns are installed and the alluvium and shell materials that were removed are replaced. As a result, the Dam crest would be widened by approximately 130 feet. The buttress may be extended if testing during stone column installation indicates that strengthening of the alluvium is less than predicted. This additional buttress would require 200,000 to 400,000 cy of material.

Water level in the reservoir will need to be maintained at or below the currently mandated level of 510 feet, possibly down to elevation 480 feet. Construction is estimated to take approximately 18 months.

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Dewatering will be necessary during excavation of the alluvium to elevation 340 feet, installation of the central stone columns, and replacement of the alluvium to maintain the ground water level approximately 10 feet below the excavated ground surface.

Dewatering may also be required during excavation ground surface. Dewatering may also be required during excavation of the borrow material for the buttress if groundwater is encountered.

Borrow areas for material needed in strengthening the dam can come from the Arroyo Grande Creek floodplain downstream of the dam that was excavated during the original construction of the dam. Approximately 25,000 to 35,000 cy of commercially obtained materials are expected to be required for "filter and drain" zones of the Dam. The materials will be needed at the beginning of backfill after the stone columns are completed.

Appurtenant Facility Improvements
The left abutment has been suspected of having seepage, and the spillway structure (on the right abutment) requires repairs to areas of the concrete floor and walls.

Construction activities will occur at the spillway and at the left abutment to correct these problems.

Seepage in the left abutment may have carried some abutment materials out though the drains in the dam, resulting in voids. Grouting will be used to reduce this seepage by filling any such voids. This work is independent of the remediation activities and could be performed in parallel with them.

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NOTICE OF INTENT TO ADOPT A NEGATIVE DECLARATION
Pursuant to the California Environmental Quality Act (CEQA) Who: County of San Luis Obispo Flood Control and Water Conservation District What: A Negative Declaration (ND) has been prepared and issued for the County of San Luis Obispo Flood Control and Water Conservation District (District) Lopez Water Project Contract Changes. The District is proposing to restate and amend the existing water supply contracts for the Lopez Water Project to allow the Contractors to store their unused annual water entitlement in Lopez Reservoir for future use. The purpose of the proposed change is to provide the Contractors greater flexibility to better manage their water supply portfolios, which may also include groundwater and allocations from the State Water Project. The project is expected to improve water supply resiliency for the region.

Where: Copies of the proposed ND and all the associated documents referenced in the ND are available for review at the County of San Luis Obispo Department of Public Works, 976 Osos Street, County Government Center Room 206, San Luis Obispo, CA 93408. The ND is also accessible on the Public Works website at https://slocounty.ca.gov/PW/Lopez-WaterProject-MND.

Comments: The 30-day review and comment period for the proposed ND begins on January 28, 2022, and ends on February 28, 2022. Written comments must be received by 5:00 p.m. on the last day of the review period and should be addressed to: Monica Stillman, Environmental Specialist, [email protected], County Government Center, Room 206, San Luis Obispo, CA 93408.

Public Hearing: The County of San Luis Obispo Board of Supervisors will hold a public hearing to consider the adoption of the Negative Declaration. The hearing is anticipated to be held in Spring, 2022. Interested persons can access the Board of Supervisor’s agenda at http://www.slocounty.ca.gov/bos/BOSagenda.htm to locate the date of the public hearing for this project.

Attachment 2 - page 1 of 96
ATTACHMENT 3

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Project Number Project Name
Initial Study - Environmental Checklist
PLN-2039
04/2019
Project Title & No. Lopez Water Project Contract Changes (ED20-210, 552R235020) ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED: The proposed project could have a "Potentially Significant Impact" for environmental factors checked below. Please refer to the attached pages for discussion on mitigation measures or project revisions to either reduce these impacts to less than significant levels or require further study.

D Aesthetics D Greenhouse Gas Emissions D Public Services D Agriculture & Forestry D Hazards & Hazardous Materials D Recreation Resources D Hydrology & Water Quality D Transportation D Air Quality D Land Use & Planning D Tribal Cultural Resources D Biological Resources D Mineral Resources D Utilities & Service Systems D Cultural Resources D Noise 0 Wildfire D Energy D Population & Housing D Mandatory Findings of D Geology & Soils Significance DETERMINATION: (To be completed by the Lead Agency)
On the basis of this initial evaluation, the Environmental Division Manager finds that ~ The proposed project COULD NOT have a significant effect on the environment, and a NEGATIVE DECLARATION will be prepared.

D Although the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because revisions in the project have been made by or agreed to by the project proponent. A MITIGATED NEGATIVE DECLARATION will be prepared. D The proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT is required.

D The proposed project MAY have a "potentially significant impact" or "potentially significant unless mitigated" impact on the environment, but at least one effect 1) has been adequately analyzed in an earlier document pursuant to applicable legal standards, and 2) has been addressed by mitigation measures based on the earlier analysis as described on attached sheets. An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to be addressed. D Although the proposed project could have a significant effect on the environment, because all potentially significant effects (a) have been analyzed adequately in an earl ier EIR or NEGATIVE DECLARATION pursuant to applicable standard_s, and (b) have been avoided or mitigated pursuant to that earlier EIR or NEGATIVE DECLARATION, including revisions or mitigation measures that are imposed upon the proposed project, nothing further is required.

Monica Stillman . ),:~ ~---u..- / -,.,:z Y- -20.--<"< Prepared by(Print) Signature// ----· ----------- Date . /__ Keith Miller ~- / d 1/ ~;)-. -R-ev-ie_w_e_d-by-(P-r-in-t) ___ Sig ature Da?e /
976 0505 STREET, ROOM 206 I SAN LUIS OBISPO, CA 93408 1(805) 781-5252 I TTY/TRS 7-1-1 [email protected] .us I www.slocounty.ca.gov
PAGE 1 OF 55
Attachment 2 - page 2 of 96 Page 100 of 514
Project Number Project Name PLN-2039
04/2019
Initial Study – Environmental Checklist
976 OSOS STREET, ROOM 206 | SAN LUIS OBISPO, CA 93408 |(805) 781-5252 | TTY/TRS 7-1-1 PAGE 2 OF 55 [email protected] | www.slocounty.ca.gov
Project Environmental Analysis
The County's environmental review process incorporates all of the requirements for completing the Initial Study as required by the California Environmental Quality Act (CEQA) and the CEQA Guidelines. The Initial Study includes staff's on-site inspection of the project site and surroundings and a detailed review of the information in the file for the project. In addition, available background information is reviewed for each project. Relevant information regarding soil types and characteristics, geologic information, significant vegetation and/or wildlife resources, water availability, wastewater disposal services, existing land uses and surrounding land use categories and other information relevant to the environmental review process are evaluated for each project. Exhibit A includes the references used, as well as the agencies or groups that were contacted as a part of the Initial Study. The County Public Works Department uses the checklist to summarize the results of the research accomplished during the initial environmental review of the project.

Persons, agencies or organizations interested in obtaining more information regarding the environmental review process for a project should contact the County of San Luis Obispo Public Works Department, 976 Osos Street, Rm. 206, San Luis Obispo, CA, 93408-2040 or call (805) 781-5252.

A. Project
DESCRIPTION: The San Luis Obispo County Flood Control and Water Conservation District (District) proposes to restate and amend its existing water supply contracts with the Zone 3 Lopez Dam water supply Contractors (project). The Contractors include the Cities of Arroyo Grande, Grover Beach and Pismo Beach, the Oceano Community Services District, and the County Service Area 12 (Avila Beach). This Initial Study provides a description of the project and expected outcomes. Hydrologic modeling was conducted to evaluate the expected outcomes of the project. Modeling results are summarized below and are described in more detail in Attachment A.

The District’s current water supply contracts with the Contractors provide an annual entitlement of water from the Lopez Reservoir (entitlement) and the option to purchase surplus water (if available), which consists of unused annual entitlements and unreleased downstream releases from the previous water year. Contractors have one year to use the surplus water and can only use it after they use their full entitlements. Any unused surplus water then reverts back to being water available to the District for annual entitlements and downstream releases in the subsequent year. This contractual structure creates a “use it or lose it” scenario and does not provide any direct incentive for the Contractors to limit their use of Lopez Water and preserve local water supplies.

The District, on behalf of the Contractors, is proposing to restate and amend its existing water supply contracts to allow the Contractors to store their unused annual water entitlement and any surplus water they receive in Lopez Reservoir, as well as allow for in-lieu storage of State Water Project (SWP) water. In other words, each Contractor would have a stored water account. The purpose of the proposed changes is to provide the five Contractors greater flexibility to better manage their water supply portfolios and incentivize conservation of water during emergencies and droughts. The project would provide the Contractors greater flexibility to use their water supplies conjunctively (i.e., to implement a balanced use of surface and groundwater supplies based on hydrologic conditions) and additionally allow Contractors to transfer stored Lopez and SWP water amongst themselves to improve water supply availability during drought conditions and water supply resiliency for the region.

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Project Number Project Name PLN-2039
04/2019
Initial Study – Environmental Checklist
976 OSOS STREET, ROOM 206 | SAN LUIS OBISPO, CA 93408 |(805) 781-5252 | TTY/TRS 7-1-1 PAGE 3 OF 55 [email protected] | www.slocounty.ca.gov
The project would increase the likelihood that Zone 3 Contractors with existing SWP water allocations will use their allocations more fully by either delivering to their customers or offsetting Lopez Water delivery requests from other Zone 3 Contractors. In this scenario, because there is no direct physical connection between Lopez Reservoir and the SWP, no actual SWP water would physically be in the reservoir. Rather, the exchange would be an in-lieu exchange that occurs on paper through the water accounting process.

Background: The Lopez Dam and water supply facilities (Lopez Project) are owned and operated by the District and located on Lopez Drive in unincorporated County land approximately seven miles east of Arroyo Grande, in the South County planning area (Huasna-Lopez sub area), in Supervisorial District 4 (Figure 1, Vicinity Map). The Contractors have service areas in the San Luis Obispo Planning Area (San Luis Bay Inland Sub Area North and Sub Area South), San Luis Bay Coastal Planning Area, and the South County Coastal Planning Area, and Supervisorial Districts 3 and 4. The Zone 3 boundaries are shown in Figure 1.

The proposed project would not affect the following existing (i.e. “baseline”) characteristics of the reservoir and District operations:
• The safe yield of the reservoir is recognized as 8,730 acre-feet per year (AFY) • The reservoir maximum capacity would remain 49,388 acre-feet (AF) • Entitlements for the Contractors total 4,530 AFY
• The District would maintain downstream releases of up to 4,200 AFY (3,800 AFY average) • The water level of the reservoir can fluctuate from year to year and/or within a given year, due to hydrologic cycles, Contractor demand, and downstream releases. • The reservoir is generally highest in late winter and lowest in late summer. • If the reservoir falls to 20,000 AF or less, and a drought emergency declared, the District would consider modifying operations as previously done through use of a Low Reservoir Response Plan (LRRP), or similar.

Additionally, the District relies on the Interim Downstream Release Schedule (IDRS), adopted by the District’s Board of Supervisors in 2007 (District 2007), to manage its downstream releases until such time as a more permanent operations plan and associated Habitat Conservation Plan (HCP) are completed. In the short term, the proposed contract changes would not affect the downstream releases or implementation of the IDRS, which is used to maintain baseline habitat conditions for environmental resources and provide water for downstream agricultural uses.

Modeling Methodology: The County developed a model to simulate operation of the Lopez Water Project.

This model was used to evaluate Contractor water availability and Lopez Reservoir conditions under two scenarios: 1) the existing (baseline) conditions, and 2) with the proposed contract changes (Project) in effect (Attachment A). The modeling used the previous 51 years of hydrology (i.e. daily rainfall and inflow from 1969 – 2020) as a baseline for the next fifty-one years. It should be noted that 1969 was a “wet year”, with 40.25 inches of rain falling – enough to fill the newly constructed reservoir.

The potential effects of climate change were included in both scenarios. The climate change adjustments were taken from the California Water Commission’s recommended approach for evaluating effects of climate change for Water Storage Investment Program applications (CWC 2021). It should also be noted that the climate change adjustments and all modeling results become increasingly speculative over the 51-year modeling period.

The modeling scenarios assumed that the District’s adopted IDRS would continue unchanged, that there would be no change in each Contractors’ entitlement, and no change in Contractors’ groundwater extraction targets. To be conservative, the modeling assumed that downstream releases would be 4,100 AFY, slightly Attachment 2 - page 4 of 96

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Project Number Project Name PLN-2039
04/2019
Initial Study – Environmental Checklist
976 OSOS STREET, ROOM 206 | SAN LUIS OBISPO, CA 93408 |(805) 781-5252 | TTY/TRS 7-1-1 PAGE 4 OF 55 [email protected] | www.slocounty.ca.gov
above recent average.

The model inputs for the baseline scenarios used year 2035 demands and assumed that water sources would be used in the following order to meet demands:
1) Lopez Entitlement Water
2) Imported State Water Project Water
3) Groundwater allocations in accordance with current limitations Under the proposed project, the County would not dictate how each Contractor should manage its water supplies. However, it is anticipated that the Contractors would manage water use to fulfill their service needs while maximizing conservation of supplies for later use and minimizing water losses. Therefore, for the project scenarios, two water management scenarios were modeled to compare project impacts. Those two scenarios as described in Attachment A are:
• Scenario E: Contractors maximize their Lopez water supply storage account. • Scenario F: Contractors who have an allocation of SWP water maximize their SWP storage account.

Differences between these two scenarios were minor (Table 12 in Attachment A, comparison of Scenarios E and F to baseline conditions with effects of climate change included). For simplicity, and to capture the worstcase low water scenario in the reservoir, this Initial Study presents potential impacts associated with Scenario F, which maximizes SWP storage. Under Scenario F Contractors would use the following order of water supply use to meet demands:
1) Lopez Entitlement Water
2) Groundwater allocations in accordance with current limitations 3) Imported State Water Project Water
4) Stored Lopez water
5) Stored SWP Water
Model Results: Attachment A provides scenario results related to:
• Annual Lopez Lake Levels
• Annual Downstream Releases
• Annual Evaporation
• Spill Events
• Spill Event Daily Peak Rates
• Contractor Storage, including amount stored, amount used, and lost during a spill These results are summarized in the text and tables that follow, with the exception of individual Contractor storage amounts. Attachment A provides modeled annual water deliveries for each Contractor in Tables 8 -

10. In general, it is expected that as a result of the project, modeled annual average water delivered and stored from existing sources would remain unchanged for CSA 12, would include increased use of the existing SWP water allocations by Pismo Beach and Oceano, and increased use of Lopez water by Arroyo Grande. The project would not change Contractor’s maximum entitlements to Lopez water or allocations of SWP water, or where the water is used in their service areas. This means that the physical effects of the project are fully addressed by evaluating the net Project effects. Therefore, the individual Contractor storage model results in Attachment A are not addressed in this CEQA document.

Due to the effects of climate change, even without the project, average annual inflows to Lopez Reservoir would potentially increase by 9.5% compared to the last 51 years (Table 7 in Attachment A), resulting in generally higher water levels in Lopez Reservoir during the modeling period (i.e., increase in Lopez Lake Attachment 2 - page 5 of 96

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Project Number Project Name PLN-2039
04/2019
Initial Study – Environmental Checklist
976 OSOS STREET, ROOM 206 | SAN LUIS OBISPO, CA 93408 |(805) 781-5252 | TTY/TRS 7-1-1 PAGE 5 OF 55 [email protected] | www.slocounty.ca.gov
Storage shown by comparing Attachment A Table 11 without climate change to Table 12 with climate change).

Project-related changes in how the Contractors use and store water are estimated to result in the following conditions in Lopez Reservoir:

1. The volume stored behind the dam would be incrementally greater on average than the baseline condition, meaning the reservoir would have, on average, higher water levels (Figure 2).

2. There would be an increase in spilled water. Over a 51-year period baseline total spill volume would be 290,711 AF. With the project, the total spill volume would be 317,520 AF, an increase of 26,809 AF.

3. Spills would occur in 20 out of 51 years without the project, and 21 out of the next 51 years with the project.

4. There would be an increase in evaporative loss due to slightly higher reservoir levels. The model predicts that baseline evaporation loss would be 137,545 AF. With the project, the estimated loss would be 140,792 AF, an increase of 3,247 AF.

5. Expected occurrence of low water limitations would decrease. The IDRS includes a Low Reservoir Response Plan, which is potentially placed into effect when the reservoir is at or below 20,000 AF. The model predicts that over a 51-year period without the project, the reservoir would drop below 20,000 AF in approximately 7 out of 51 years. With the project, this condition is predicted to occur in 5 out of 51 years.

Relative effects of the project on reservoir spills, evaporation and low water years are shown in Table 3.

Table 3. Predicted Project-Related Effects over 51 Years Baseline
(Scenario D)
Project
(Scenario F) Difference
Spill Events 20 21 +1
Spilled Water (AF) 290,711 317,520 +26,809 (9%)
Average Evaporation Loss
(AF)
137,545 140,507 +2,962 (2%)
# of Low Water Years 7 5 -2
Spills: Spilled water is that which exceeds the capacity of the reservoir and flows over the spillway. This water is no longer available for Contractor use but would periodically increase flows downstream in Arroyo Grande Creek.

The project-related increase of spill shown in Table 3 likely overstates actual spill amounts because the Contractors would have a financial incentive to prevent spill (i.e., preserve their stored water) through active management of their water portfolios. For example, given the high cost of State Water, Contractors will want to store it at Lopez reservoir when there is little risk of a spill and use it before that water is lost in a spill to avoid a financial loss. The modeling assumed that Contractors would store as much State Water as possible, which provides a reasonable worst-case scenario when it comes to spilled water.

The total predicted increased spill amount is 26,809 AF, which could occur during 21 spill events in the 51-year modeling period. This corresponds to an average of approximately 1,276 AFY increase in spill volume during each spill. Through analysis of historic SWP operations, it was determined that approximately 7,000 AFY of District water has been lost due to spill at the SWP’s San Luis Reservoir on average over the last 26 years.

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Project Number Project Name PLN-2039
04/2019
Initial Study – Environmental Checklist
976 OSOS STREET, ROOM 206 | SAN LUIS OBISPO, CA 93408 |(805) 781-5252 | TTY/TRS 7-1-1 PAGE 6 OF 55 [email protected] | www.slocounty.ca.gov
Because the project would encourage in-lieu exchanges of SWP water and Lopez water, the increased spill volume at Lopez should be balanced by a decrease in spill volume at San Luis Reservoir.

In terms of spill effects on Arroyo Grande Creek downstream of the dam, the majority of the predicted projectrelated spill events would result in incremental increases in volume that would be within the range of baseline spill magnitudes. This is discussed further in Section X – Hydrology and Water Quality. The effects of these incremental increases on peak flow rates in Arroyo Grande Creek are depicted graphically for three different locations along Arroyo Grande Creek shown in Figure 3: just below Lopez Dam (modeling results in Figure 4), the AG Stream Gage near Stanley Avenue in the City of Arroyo Grande (Figure 5), and the 22nd Street bridge in Oceano (Figure 6). These locations were selected because there are flow monitoring devices that have been in use at these sites for many years. Additionally, the 22nd Street location is in the District’s Zone 1/1A managed flood control channel, which consists of levees along the lower three miles of Arroyo Grande Creek.

Evaporation: The estimated project-related effects on evaporation constitute a 140,507 AF loss over the 51- year modeling period, or an average of 2,702 AFY more than baseline conditions (Table 16 in Attachment A).

Other Considerations: Physical conditions within the Contractors’ service areas in Zone 3 vary widely. The project would potentially alter how much of each Contractors’ Lopez supply is used each year, but the project would not alter how much water each Contractor provides to their customers or where/how that water is used. Further, the proposed project would not require any physical improvements to the Lopez Project, which includes the reservoir, water treatment and delivery infrastructure.

The Existing Setting section below focuses on the Lopez Reservoir and the downstream Arroyo Grande Creek channel, where direct physical impacts would be more likely to occur, rather than the entirety of the Zone 3 boundary.

ASSESSOR PARCEL NUMBER(S): multiple
Latitude: 35 º 11' 20.58" N Longitude: -120º 29' 21.63" W SUPERVISORIAL DISTRICT # 4 B. Existing Setting
Plan Area: South County Sub: Huasna-Lopez Comm: Rural
Land Use Category: Recreation Rural Lands Agriculture Residential, Urban Combining Designation: Sensitive Resource Area Flood Hazard Geologic Study Parcel Size: Varies
Topography: Nearly level to Very steeply sloping
Vegetation: Grasses Scattered Oaks Chaparral, Agriculture Existing Uses: Undeveloped recreation, agriculture, rural and suburban residential, urban Surrounding Land Use Categories and Uses – Lopez Reservoir:

North: Open Space; rural lands recreation East: Agriculture; recreation rural lands South: Agriculture; rural lands West: Agriculture;
Surrounding Land Use Categories and Uses – Arroyo Grande Creek:

Upstream: Agriculture, rural, rural residential
Downstream: Urban, rural and suburban residential, agriculture, recreation Attachment 2 - page 7 of 96

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Project Number Project Name PLN-2039
04/2019
Initial Study – Environmental Checklist
976 OSOS STREET, ROOM 206 | SAN LUIS OBISPO, CA 93408 |(805) 781-5252 | TTY/TRS 7-1-1 PAGE 7 OF 55 [email protected] | www.slocounty.ca.gov
C. Environmental Analysis
The Initital Study Checklist provides detailed information about the environmental impacts of the proposed project and mitigation measures, if applicable, to lessen the impacts.

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Project Number Project Name PLN-2039
04/2019
Initial Study – Environmental Checklist
976 OSOS STREET, ROOM 206 | SAN LUIS OBISPO, CA 93408 |(805) 781-5252 | TTY/TRS 7-1-1 PAGE 8 OF 55 [email protected] | www.slocounty.ca.gov
Figure 1. Lopez Project Vicinity Map
ZONE 3 WATER SYSTEM
CSA 1 ,
TU

I ' ' I I
. ~ Lopez
\ ,', " ... , ...

I •>
0 5,000 10,000

SAN LUIS OBISPO COUNTY/

CITY OF GROVER BE
TURNOµT

SAN LUIS OBISPO COUNTY FLOOD CONTROL
AND WATER CONSERVATION DISTRICT BOUNDARY _______ ,
',
I
OCEANO~fl.JRNOUT
.- _, I
I
'
Legend
- LOPEZ WATER TRANSMISSION LINE
: ___ :ZONE 3 BOUNDARY
JJCZ.3.POP' Pr.pared 11/15/200$ by O R:ao n SLO CCIU NTV AJBLIC Y<ORKS O!Pr Attachment 2 - page 9 of 96

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Project Number Project Name PLN-2039
04/2019
Initial Study – Environmental Checklist
976 OSOS STREET, ROOM 206 | SAN LUIS OBISPO, CA 93408 |(805) 781-5252 | TTY/TRS 7-1-1 PAGE 9 OF 55 [email protected] | www.slocounty.ca.gov
Figure 2. Predicted project-related increase in Lopez Reservoir water levels. 0 5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008 2012 2016 2020 Storage, Acre-Feet
Baseline (Scenario D) Maximize SWP Storage (Scenario F) Attachment 2 - page 10 of 96

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Project Number Project Name PLN-2039
04/2019
Initial Study – Environmental Checklist
976 OSOS STREET, ROOM 206 | SAN LUIS OBISPO, CA 93408 |(805) 781-5252 | TTY/TRS 7-1-1 PAGE 10 OF 55 [email protected] | www.slocounty.ca.gov
Figure 3. Locations analyzed for project-related increases in channel flow due to spill.

LOPEZ WATER PROJECT CONTRACT
CHANGES, San Luis Obispo County, CA
1: 117,796
0 2

COUNTY OF SAN LUIS OBISPO
DEPARTMENT OF PUBLIC \f\,ORKS
4 Miles
Map by: staff
Printed: 12/2/2021 0
Attachment 2 - page 11 of 96

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Project Number Project Name PLN-2039
04/2019
Initial Study – Environmental Checklist
976 OSOS STREET, ROOM 206 | SAN LUIS OBISPO, CA 93408 |(805) 781-5252 | TTY/TRS 7-1-1 PAGE 11 OF 55 [email protected] | www.slocounty.ca.gov
Figure 4. Annual peak spill rates downstream from Lopez Dam. 3000
2500
2000
~ u
s"' 1500
0 LL
1000
500
0 I
ro°' ~ ~'? {>} ~~ {>} 9:,~ {'i
■ Baseline (D)
I I 11 ~ {'i 9:,°' {') ?,'?
~ ?,~ ~ c~
~ c<-> ~ c°' ~ 'S' ~ ~ ~
■ Increase Due to Project, Maximize SWP Storage (F)
Attachment 2 - page 12 of 96

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Project Number Project Name PLN-2039
04/2019
Initial Study – Environmental Checklist
976 OSOS STREET, ROOM 206 | SAN LUIS OBISPO, CA 93408 |(805) 781-5252 | TTY/TRS 7-1-1 PAGE 12 OF 55 [email protected] | www.slocounty.ca.gov
Figure 5. Annual peak flow rates at the Arroyo Grande stream gage near Stanley Avenue. 6000
5000
4000
~ u
s' 3000
0 u..
2000
1000
0 ro°' ~
._.I --- C\'\,
~ C\<, ~ C\'o ~
9,",,
~
■ Baseline (D)
IJ --111 I I -- l_l_1 - - I •- ~
~ ~ ~ 0<::; ~ 0'» ~ 0'o ~ 0°' ~ o""' o<, o'o ~,.._,,
~ ~ ~ ~ ~ ~ ~ ~ ~ ~
■ Increase Due to Project, Maximize SWP Storage (F)
Attachment 2 - page 13 of 96

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Project Number Project Name PLN-2039
04/2019
Initial Study – Environmental Checklist
976 OSOS STREET, ROOM 206 | SAN LUIS OBISPO, CA 93408 |(805) 781-5252 | TTY/TRS 7-1-1 PAGE 13 OF 55 [email protected] | www.slocounty.ca.gov
Figure 6. Annual Peak flow rates at the 22nd Street Bridge in Oceano. 6000
5000 ----------- ------------------------------- ~ Capacity of AG Creek Flood Control Channel
4000
~ 3000
u
~~
0 LL. 2000
1000
0 ._.I - IJ - - 111
_ I ■ -- l_l_1 - I ■ - ro°' {» ~~
~ ~<, ~ ~'b ~ 9:,"Y
~ ~ {') !b' {') ?P {» PJ,,, {» PJ(o {» PJ°' {» c~
~ c"' ~ c'b ~ ~"Y ~ ~ ~ ~ ~ ~ ~
-1000
Baseline (D) Increase Due to Project, Maximize SWP Storage (F) - - - Channel Capacity Attachment 2 - page 14 of 96

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Project Number Project Name PLN-2039
04/2019
Initial Study – Environmental Checklist
976 OSOS STREET, ROOM 206 | SAN LUIS OBISPO, CA 93408 |(805) 781-5252 | TTY/TRS 7-1-1 PAGE 14 OF 55 [email protected] | www.slocounty.ca.gov
I. AESTHETICS
Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Incorporated
Less Than
Significant
Impact No Impact
Except as provided in Public Resources Code Section 21099, would the project:
(a) Have a substantial adverse effect on a
scenic vista?
☐ ☐ ☒ ☐
(b) Substantially damage scenic resources,
including, but not limited to, trees, rock
outcroppings, and historic buildings
within a state scenic highway?
☐ ☐ ☐ ☒
(c) In non-urbanized areas, substantially
degrade the existing visual character or
quality of public views of the site and its
surroundings? (public views are those
that are experienced from publicly
accessible vantage point). If the project
is in an urbanized area, would the
project conflict with applicable zoning
and other regulations governing scenic
quality?
☐ ☐ ☒ ☐
(d) Create a new source of substantial light
or glare which would adversely affect
day or nighttime views in the area?
☐ ☐ ☐ ☒
Setting
The Lopez Reservoir and surrounding hills have high scenic value. The setting is in undeveloped hills with scattered coastal oak woodland. Lopez Drive is the primary publicly accessible road in the vicinity and it follows the meandering south and southeastern shoreline of the reservoir with expansive views of the reservoir and surrounding hills. The Lopez Recreation Area at the north side of the reservoir supports recreational uses on land and on the water, for which the aesthetics of the reservoir and surrounding open space is an important component of the character of the park.

Arroyo Grande Creek downstream from the dam is bordered by a variety of land uses and settings, including open space, agricultural fields, vegetated riparian corridors, and residential and urban development.

Discussion
(a) Have a substantial adverse effect on a scenic vista? The project could result in changes in the water level in the reservoir, but these changes would be within the range of current water level fluctuations that result from changes in hydrology (e.g., rain, runoff), climate trends, and Contractor demand. The project would not result in a significant lowering of the reservoir levels, for example, which could impact the aesthetics of the reservoir when viewed from trails and the campground.

The small-scale changes in water levels (up or down) over time that could result from the project changes Attachment 2 - page 15 of 96

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Project Number Project Name PLN-2039
04/2019
Initial Study – Environmental Checklist
976 OSOS STREET, ROOM 206 | SAN LUIS OBISPO, CA 93408 |(805) 781-5252 | TTY/TRS 7-1-1 PAGE 15 OF 55 [email protected] | www.slocounty.ca.gov
would not impact scenic vistas at the reservoir. Similarly, project-related changes in flow in Arroyo Grande Creek would not affect the scenic character of the creek downstream from the dam. (b) Substantially damage scenic resources, including, but not limited to, trees, rock outcroppings, and historic buildings within a state scenic highway?
The project is not located on or near a designated state scenic highway and would not require construction or other activities that could damage scenic resources. The upper limit on reservoir water level is controlled by the spillway, so the project would not result in shoreline flooding in new areas. Project-related effects on flow in Arroyo Grande Creek are not expected to change existing channel or bank conditions. Therefore, the project is not expected to damage existing scenic resources such as trees. (c) In non-urbanized areas, substantially degrade the existing visual character or quality of public views of the site and its surroundings? (Public views are those that are experienced from publicly accessible vantage point). If the project is in an urbanized area, would the project conflict with applicable zoning and other regulations governing scenic quality?
Direct project effects in Lopez Reservoir are in a non-urbanized area. Potential indirect effects on flow conditions in Arroyo Grande Creek could affect a variety of land uses downstream from the dam, including non-urbanized and urbanized areas. The project would maintain the existing character and quality of public views from surrounding public roads and the Lopez Lake Recreation Area. The project may result in changes in the water level in the reservoir, but those changes would fall within the normal range of current reservoir conditions and operations. Project-related water levels in the creek would not be substantial enough to change the character of existing views or conflict with any regulations governing scenic quality. (d) Create a new source of substantial light or glare which would adversely affect day or nighttime views in the area?
The project would not introduce any new lighting or other sources of glare.

Conclusion/Mitigation
Aesthetic impacts of the project would be limited to potential changes in reservoir water level and Arroyo Grande Creek flow that are within the historic and current range of water levels resulting from existing reservoir conditions and operations. As such, the project would have no significant adverse aesthetic impacts and no mitigation measures are required.

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Project Number Project Name PLN-2039
04/2019
Initial Study – Environmental Checklist
976 OSOS STREET, ROOM 206 | SAN LUIS OBISPO, CA 93408 |(805) 781-5252 | TTY/TRS 7-1-1 PAGE 16 OF 55 [email protected] | www.slocounty.ca.gov
II. AGRICULTURE AND FORESTRY RESOURCES
Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Incorporated
Less Than
Significant
Impact No Impact
In determining whether impacts to agricultural resources are significant environmental effects, lead agencies may refer to the California Agricultural Land Evaluation and Site Assessment Model (1997) prepared by the California Dept. of Conservation as an optional model to use in assessing impacts on agriculture and farmland. In determining whether impacts to forest resources, including timberland, are significant environmental effects, lead agencies may refer to information compiled by the California Department of Forestry and Fire Protection regarding the state’s inventory of forest land, including the Forest and Range Assessment Project and the Forest Legacy Assessment project; and forest carbon measurement methodology provided in Forest Protocols adopted by the California Air Resources Board. Would the project:
(a) Convert Prime Farmland, Unique
Farmland, or Farmland of Statewide
Importance (Farmland), as shown on the
maps prepared pursuant to the
Farmland Mapping and Monitoring
Program of the California Resources
Agency, to non-agricultural use?
☐ ☐ ☐ ☒
(b) Conflict with existing zoning for
agricultural use, or a Williamson Act
contract?
☐ ☐ ☐ ☒
(c) Conflict with existing zoning for, or
cause rezoning of, forest land (as
defined in Public Resources Code
section 12220(g)), timberland (as defined
by Public Resources Code section 4526),
or timberland zoned Timberland
Production (as defined by Government
Code section 51104(g))?
☐ ☐ ☐ ☒
(d) Result in the loss of forest land or
conversion of forest land to non-forest
use?
☐ ☐ ☐ ☒
(e) Involve other changes in the existing
environment which, due to their location
or nature, could result in conversion of
Farmland, to non-agricultural use or
conversion of forest land to non-forest
use?
☐ ☐ ☒ ☐
Setting
The reservoir is surrounded by agricultural land uses to the east and west of the recreational lands bordering the reservoir, the outlet to the dam, and Arroyo Grande Creek downstream to the coast. These include vineyards, ranches, and row crops.

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Project Number Project Name PLN-2039
04/2019
Initial Study – Environmental Checklist
976 OSOS STREET, ROOM 206 | SAN LUIS OBISPO, CA 93408 |(805) 781-5252 | TTY/TRS 7-1-1 PAGE 17 OF 55 [email protected] | www.slocounty.ca.gov
The reservoir is in the Arroyo Grande Valley Arroyo Grande Preserve Area. Surrounding agricultural lands downstream along the Arroyo Grande Creek corridor to Oceano include numerous parcels that are under Williamson Act contract and/or have prime farmland soils. These agricultural operations have generally been active for decades, are commonly developed with high value row crops and related infrastructure, and are highly productive.

There are no managed forest lands or timberland at or near the reservoir or along Arroyo Grande Creek downstream of the dam. The reservoir is predominantly surrounded by central coast scrub and scattered oak woodlands.

Discussion
(a) Convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to the Farmland Mapping and Monitoring Program of the California Resources Agency, to non-agricultural use?
The project would not have any direct physical effects on any farmland in the vicinity. The project would not change the baseline dam releases that provide water for downstream agricultural use. Project-related increases in spill have the potential to incrementally increase downstream flow conditions, which could have minor beneficial effects for irrigation. Any such increases are predicted to be within the existing range of channel flow volumes and are not expected to increase the frequency or severity of flooding of agricultural lands (refer to discussion in Hydrology and Water Quality Section). As such, the project is not expected to result in any conversion of farmland to non-agricultural use. (b) Conflict with existing zoning for agricultural use, or a Williamson Act contract? The project would not affect access to or use of nearby agricultural lands including Williamson Act contract properties.
(c) Conflict with existing zoning for, or cause rezoning of, forest land (as defined in Public Resources Code section 12220(g)), timberland (as defined by Public Resources Code section 4526), or timberland zoned Timberland Production (as defined by Government Code section 51104(g))? There are lands meeting the definition of 12220(g) (i.e., land that can support 10-percent native tree cover of any species, including hardwoods, under natural conditions, and that allows for management of one or more forest resources, including timber, aesthetics, fish and wildlife, biodiversity, water quality, recreation, and other public benefits) around Lopez Reservoir and bordering portions of Arroyo Grande Creek. However, the project would not affect the maximum water level in the reservoir, which is controlled by the spillway.

Therefore, there would be no direct or indirect effects on forest lands around the reservoir. Project-related changes in flows in Arroyo Grande Creek downstream of the dam would be within the current range of flows and are not expected to increase the frequency or duration of flood conditions to an extent that could adversely affect forest lands.

There are no known timberland production zones meeting the definition of 51104(g) in the project vicinity (i.e., an area which has been zoned pursuant to Section 51112 or 51113 and is devoted to and used for growing and harvesting timber, or for growing and harvesting timber and compatible uses). (d) Result in the loss of forest land or conversion of forest land to non-forest use? See above. The project would not directly or indirectly affect forest land or require conversion of any forest land to non-forest use.

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Project Number Project Name PLN-2039
04/2019
Initial Study – Environmental Checklist
976 OSOS STREET, ROOM 206 | SAN LUIS OBISPO, CA 93408 |(805) 781-5252 | TTY/TRS 7-1-1 PAGE 18 OF 55 [email protected] | www.slocounty.ca.gov
(e) Involve other changes in the existing environment which, due to their location or nature, could result in conversion of Farmland, to non-agricultural use or conversion of forest land to non-forest use? As stated in (a), the project would not adversely affect existing downstream releases that support agricultural irrigation, and is not expected to have a material effect on downstream flooding. Therefore, the project would not result in changes that have the potential to convert farmland or forest land from existing uses.

Conclusion/Mitigation
The project would have no direct effects on agriculture operations, agricultural land, or forest land. Potential indirect effects on agricultural land due to project-related changes in Arroyo Grande Creek flows during high flow events are not expected to be of a magnitude that would result in adverse effects to forest land, farmland, or agricultural operations. No mitigation measures are required.

III. AIR QUALITY
Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Incorporated
Less Than
Significant
Impact No Impact
Where available, the significance criteria established by the applicable air quality management district or air pollution control district may be relied upon to make the following determinations. Would the project:
(a) Conflict with or obstruct implementation
of the applicable air quality plan?
☐ ☐ ☐ ☒
(b) Result in a cumulatively considerable net
increase of any criteria pollutant for
which the project region is nonattainment under an applicable federal or state ambient air quality standard?
☐ ☐ ☐ ☒
(c) Expose sensitive receptors to substantial
pollutant concentrations?
☐ ☐ ☐ ☒
(d) Result in other emissions (such as those
leading to odors) adversely affecting a
substantial number of people?
☐ ☐ ☐ ☒
Setting
San Luis Obispo County is in non-attainment status for ozone and particulate matter 10 micrometers in size and smaller (PM10) under the California standards. This means that the state air quality standards for ozone and PM10 are not being met. The County’s Clean Air Plan describes strategies to reduce emissions of these pollutants with the goal of improving air quality to meet the state standards by the earliest possible date. For project-specific emissions analyses, the current guidance is the County APCD CEQA Air Quality Handbook (2012) and permits may be required from APCD for certain activities that affect emissions.

Typical sources of emissions of particulate matter include excavation and soil grading activities. Typical sources of emissions that contribute to ozone levels include fossil fuel burning, such as by vehicle and equipment engines and generators.

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Project Number Project Name PLN-2039
04/2019
Initial Study – Environmental Checklist
976 OSOS STREET, ROOM 206 | SAN LUIS OBISPO, CA 93408 |(805) 781-5252 | TTY/TRS 7-1-1 PAGE 19 OF 55 [email protected] | www.slocounty.ca.gov
Additional air quality concerns include lead and asbestos either occurring in soil or in structures to be demolished. The Lopez dam and portions of the reservoir and downstream environment are within the APCD’s mapped naturally occurring asbestos buffer, meaning there may be natural sources of asbestos in the soil that could be exposed through grading activities.

The APCD responded to early consultation on the project by email dated November 3, 2020. Because there is no proposed construction, the APCD has no concerns with the project.

Discussion
(a) Conflict with or obstruct implementation of the applicable air quality plan? The source control measures in the Clean Air Plan are not directly applicable to the project. The project will not require or affect vehicle, equipment, or generator use such as by construction activities or generating new traffic. Accordingly, the project does not conflict with the Clean Air Plan. (b) Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is non-attainment under an applicable federal or state ambient air quality standard? The project will not result in any temporary or permanent emissions that would affect ozone or PM10 (dust) levels.
(c) Expose sensitive receptors to substantial pollutant concentrations? In accordance with the APCD Handbook, sensitive receptors are people that have an increased sensitivity to air pollution or environmental contaminants. Sensitive receptor locations include schools, parks and playgrounds, day care centers, nursing homes, hospitals, and residential dwelling units.

Sensitive receptors in the vicinity of the project include recreational users at Lopez Lake Recreation Area, and agricultural workers and residents in close proximity to any of the Lopez Project Facilities. The project would not require any construction or operational air emissions or any demolition, so there is no potential for adverse effects to sensitive receptors from diesel emissions, naturally occurring asbestos, or asbestos, lead, or other contaminants in soil or in structures to be demolished. (d) Result in other emissions (such as those leading to odors) adversely affecting a substantial number of people?
The project would not require construction or operational changes that would produce any other emissions.

Conclusion/Mitigation
The project would have no effect on air emissions or air quality and no mitigation measures are required.

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Project Number Project Name PLN-2039
04/2019
Initial Study – Environmental Checklist
976 OSOS STREET, ROOM 206 | SAN LUIS OBISPO, CA 93408 |(805) 781-5252 | TTY/TRS 7-1-1 PAGE 20 OF 55 [email protected] | www.slocounty.ca.gov
IV. BIOLOGICAL RESOURCES
Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Incorporated
Less Than
Significant
Impact No Impact
Would the project:
(a) Have a substantial adverse effect, either
directly or through habitat
modifications, on any species identified
as a candidate, sensitive, or special
status species in local or regional plans,
policies, or regulations, or by the
California Department of Fish and Game
or U.S. Fish and Wildlife Service?
☐ ☐ ☒ ☐
(b) Have a substantial adverse effect on any
riparian habitat or other sensitive
natural community identified in local or
regional plans, policies, regulations or by
the California Department of Fish and
Game or US Fish and Wildlife Service?
☐ ☐ ☒ ☐
(c) Have a substantial adverse effect on
state or federally protected wetlands
(including, but not limited to, marsh,
vernal pool, coastal, etc.) through direct
removal, filling, hydrological
interruption, or other means?
☐ ☐ ☒ ☐
(d) Interfere substantially with the
movement of any native resident or
migratory fish or wildlife species or with
established native resident or migratory
wildlife corridors, or impede the use of
native wildlife nursery sites?
☐ ☐ ☒ ☐
(e) Conflict with any local policies or
ordinances protecting biological
resources, such as a tree preservation
policy or ordinance?
☐ ☐ ☐ ☒
(f) Conflict with the provisions of an
adopted Habitat Conservation Plan,
Natural Community Conservation Plan,
or other approved local, regional, or
state habitat conservation plan?
☐ ☐ ☒ ☐
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Project Number Project Name PLN-2039
04/2019
Initial Study – Environmental Checklist
976 OSOS STREET, ROOM 206 | SAN LUIS OBISPO, CA 93408 |(805) 781-5252 | TTY/TRS 7-1-1 PAGE 21 OF 55 [email protected] | www.slocounty.ca.gov
Setting
Lopez Reservoir
The description of biological resources in and around Lopez Reservoir is based on the Lopez Drive Bridge Seismic Retrofit Project Natural Environment Study (SWCA, 2019).

Habitat types present around the Lopez Reservoir shoreline include primarily live oak woodland and Central Coast scrub. These habitat types extend from the reservoir shoreline up to the Los Padres National Forest lands to the north and east. Ruderal habitats are present along the roadsides and in disturbed lakeshore locations. Ruderal habitats may have invasive plant species, including non-native grasses such as red brome and pampas grass.

The lake shoreline experiences water level fluctuations in response to seasonal climatic conditions and Contractor demand. Central Coast scrub or wetland communities (e.g., mulefat) may develop during periods of low water and subsequently become inundated when the reservoir level rises.

Jurisdictional waters present include the open water area of Lopez Reservoir. Vegetated wetlands are only present as ephemeral features in response to water level fluctuations.

During preparation of the Natural Environment Study for the bridge project (2019), search of a five-mile radius around the reservoir resulted in 19 special-status plant species, 16 special-status wildlife species, and no Natural Communities of Concern. Special-status wildlife species with potential to occur at Lopez Reservoir include bald eagle, western pond turtle, California red-legged frog, nesting migratory birds, and roosting bats.

Sport fish in the lake include red-ear sunfish, crappie, largemouth bass, smallmouth bass, and catfish. Nonnative wildlife species that may be present in the lake include bullfrogs and crayfish.

Arroyo Grande Creek Corridor
The Arroyo Grande Creek corridor environment downstream from Lopez Reservoir is approximately 13 miles long and highly variable. Habitat types include, for example, central coast scrub, non-native annual grassland, chaparral, coast live oak forest, willow riparian, riparian woodland, open water, and agricultural and urban land. In many locations, these habitats intergrade due to local topographic changes as well as the intensity and type of historic development. Wetlands, beach and dune habitats, including the Meadow Creek and Arroyo Grande Creek Lagoons, are present at the creek outlet at the Oceano Dunes State Vehicular Recreation Area.

The entire creek corridor is designated critical habitat by the National Marine Fisheries Service (NMFS) for the South-Central California Coast Steelhead (steelhead). The most downstream extent of the creek corridor is partially within critical habitat for the La Gracisoa thistle by the United States Fish and Wildlife Service (USFWS).

As part of its long-term planning for the Lopez Dam, the District is in the process of developing a Habitat Conservation Plan (HCP) for the purpose of protecting and enhancing habitat conditions in Arroyo Grande Creek for steelhead and California red-legged frog (CRLF) pursuant to the federal Endangered Species Act.

The HCP will address the operation of Lopez Dam (for example, storage and downstream release scenarios) along with potential habitat restoration activities downstream of the dam. HCP goals include maintaining sufficient attractant flows for migrating adult steelhead, and maintaining sufficient wetted pools for juvenile steelhead and CRLF during low flow conditions. The HCP may result in modifications to dam releases and/or downstream flow conditions. Implications of the HCP for the Lopez water supply contracts would be evaluated through development of the draft and final HCP. The contracts would be amended, if necessary, after completion of the HCP process. The proposed contract provisions include clarifying that an HCP downstream release plan is a legally required water release and has priority over other Lopez water distributions.

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Project Number Project Name PLN-2039
04/2019
Initial Study – Environmental Checklist
976 OSOS STREET, ROOM 206 | SAN LUIS OBISPO, CA 93408 |(805) 781-5252 | TTY/TRS 7-1-1 PAGE 22 OF 55 [email protected] | www.slocounty.ca.gov
Other special-status species that are known to occur or could be present at times within the creek corridor include coast range newt, coast horned lizard, western pond turtle, California legless lizard, numerous bird species, bats, and plant species including Pismo clarkia and Santa Margarita manzanita, among others.

California Department of Parks and Recreation (State Parks) is currently preparing an HCP for multiple species that exist in the Oceano Dunes State Vehicular Recreation Area (California State Parks 2020). Species covered in the HCP include California least tern, tidewater goby, western snowy plover, CRLF, and six plant species.

Approximately the lower half mile of Arroyo Grande Creek is in the draft HCP coverage area. This area is monitored quarterly by State Parks for tidewater goby, steelhead, and CRLF.

Discussion
(a) Have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special-status species in local or regional plans, policies, or regulations, or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? While not protected as special-status species, CDFW manages the sport fish populations in the reservoir.

Project-related changes in Lopez Reservoir water levels would not adversely affect sport fish in the reservoir and may provide incremental benefits for fisheries habitat through increased water levels and surface area of Lopez Reservoir.

The project would not change the volume or timing of the downstream release schedules described in the adopted IDRS for protection of low-flow habitat conditions in Arroyo Grande Creek.

The project could result in periodic increases in flow in Arroyo Grande Creek due to a nominal increase in occurrence and magnitude of downstream spill events (Figures 4, 5, and 6). The majority of the project-related increases in spill volume would occur in the winter and spring months when reservoir levels are higher and flows downstream are already high. The incremental increases in spill volumes would potentially improve downstream flows for adult and juvenile steelhead, which rely on sufficient creek flow for migration and deepwater refugia.

At the downstream locations analyzed for spill effects, project-related increases in spill would not increase the magnitude of flow in the creek during the maximum spill event. For all smaller spill events, the projectrelated increases would be infrequent and would not approach the magnitude of the highest expected spillor non-spill related flows in the creek. As such, the project is not expected to have adverse effects on existing habitat conditions in the creek or riparian zones that support special-status species of wildlife and plants.

The project would not require any physical improvements and is not expected to have indirect effects that would affect special-status species.
(b) Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, regulations or by the California Department of Fish and Game or US Fish and Wildlife Service?
The Project could result in higher water levels in the Lopez Reservoir, but high-water conditions would be limited to the existing reservoir area which is limited by the existing height of the dam spillway. An increased frequency or duration of higher water levels in the reservoir would affect shoreline habitat areas that are already subjected to wide fluctuations in water level resulting from seasonal and long-term climatic conditions. As such, no adverse effects to riparian areas or other habitats are anticipated.

Riparian habitat is widespread downstream of the Lopez Reservoir. Under existing conditions, the creek generally flows higher in the winter due to rainfall and reduced agricultural demand, and lower during the Attachment 2 - page 23 of 96

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Project Number Project Name PLN-2039
04/2019
Initial Study – Environmental Checklist
976 OSOS STREET, ROOM 206 | SAN LUIS OBISPO, CA 93408 |(805) 781-5252 | TTY/TRS 7-1-1 PAGE 23 OF 55 [email protected] | www.slocounty.ca.gov
summer months. Portions of the creek routinely go dry in the drier months. The proposed project would not result in changes to the current IDRS or quantity of downstream releases. The frequency and magnitude of project-related increases in spill, if realized, are not substantial enough that riparian habitats would be adversely affected (e.g., through increased scour or sediment deposits). (c) Have a substantial adverse effect on state or federally protected wetlands (including, but not limited to, marsh, vernal pool, coastal, etc.) through direct removal, filling, hydrological interruption, or other means? Lopez Reservoir has relatively steep shorelines. Wetlands may be present as temporary features that develop during low water conditions and that are submerged during high water conditions. The proposed project would not change that condition.

The Arroyo Grande Creek corridor downstream from the dam generally consists of unvegetated channel and vegetated riparian banks constrained by flood control levees, providing limited space for development of wetlands. The downstream portion of Arroyo Grande Creek includes a wetland and lagoon complex known as Arroyo Grande Lagoon. Due to (1) the distance from the reservoir to this area, (2) that average downstream releases would not change under the proposed project, and (3) that project-related increases in spill would be relatively infrequent and within the range of existing, typical flow conditions, the proposed project is not expected to result in impacts to state or federal wetlands. (d) Interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites?
Project-related increases in reservoir water levels would not interfere with aquatic species movements, wildlife corridors, or nursery sites compared to existing conditions. Project-related effects on downstream conditions would be limited to relatively infrequent, incremental increases in flow due to spill. The project would not decrease downstream releases/flows during low flow conditions that would otherwise have the potential for adverse effects to aquatic species movement and nursery sites in Arroyo Grande Creek. The project-related short-term increases in downstream flows due to additional spill events would be well within the existing range of flow conditions in Arroyo Grande Creek; are expected to incrementally improve fish passage conditions; and are not expected to have material adverse effects on habitat conditions through increased channel scour, bank erosion, or related sediment deposits. (e) Conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or ordinance?
The project would not have any upstream watershed effects beyond the reservoir shoreline and downstream effects would be limited to infrequent, incremental increases in streamflow due to spill events. No construction, ground disturbance, or tree removal is proposed. (f) Conflict with the provisions of an adopted Habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, regional, or state habitat conservation plan? There are two HCPs currently in development – the Oceano Dunes State Vehicular Recreation Area HCP and the Arroyo Grande Creek HCP. A draft Oceano Dunes HCP is currently available for public review. The Arroyo Grande Creek HCP is in earlier development stages, with modeling and in-stream habitat surveys conducted throughout 2021. Neither has been adopted at this point. The District anticipates the Arroyo Grande Creek HCP could result in the need for revisions in operation of the dam, particularly in regard to the timing and Attachment 2 - page 24 of 96

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Project Number Project Name PLN-2039
04/2019
Initial Study – Environmental Checklist
976 OSOS STREET, ROOM 206 | SAN LUIS OBISPO, CA 93408 |(805) 781-5252 | TTY/TRS 7-1-1 PAGE 24 OF 55 [email protected] | www.slocounty.ca.gov
volume of the downstream releases. The operations identified in the HCP would replace those currently implemented in the IDRS.

The Oceano Dunes HCP includes coverage of the lower portion of Arroyo Grande Creek at the coast. The project-related effects on flow in Arroyo Grande Creek are expected to be infrequent and within the existing range of flow conditions. As such, they are not expected to conflict with the management objectives in the Oceano Dunes HCP.

Conclusion/Mitigation
The project would not result in adverse effects to biological resources. The HCP may result in future modifications to dam releases and/or downstream flow conditions. The environmental impact of those changes would be evaluated during subsequent environmental review. No mitigation measures are necessary.

V. CULTURAL RESOURCES
Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Incorporated
Less Than
Significant
Impact No Impact
Would the project:
(a) Cause a substantial adverse change in
the significance of a historical resource
pursuant to § 15064.5?
☐ ☐ ☒ ☐
(b) Cause a substantial adverse change in
the significance of an archaeological
resource pursuant to § 15064.5?
☐ ☐ ☐ ☒
(c) Disturb any human remains, including
those interred outside of dedicated
cemeteries?
☐ ☐ ☐ ☒
Setting
No historical buildings, structures or sites listed in the California Register of Historical Resources are located in or near the reservoir (California Office of Historic Preservation 2021). One historical landmark on the State Register occurs in close proximity to Arroyo Grande Creek downstream of the dam: the Independent Order of Odd Fellows (IOOF) Lodge 258 building at 127 Bridge Street, Arroyo Grande. The building housed the lodge and the South Historic Society, but is now closed. It is separated from the creek riparian zone by a paved parking lot.

With respect to archaeological resources, the project site lies within a region historically occupied by the Chumash. The Chumash occupied the coast between San Luis Obispo and northwestern Los Angeles County, inland to the San Joaquin Valley. They were divided into two broad groups, of which the Obispeño were the northern group. The Salinan were northern neighbors of the Chumash, and although the presence of a firm boundary between the Chumash and the Salinan is uncertain, ethnographic accounts have placed Salinan territories in the northern portion of the County. Neither tribal group has recognized tribal lands in the project area. For purposes of CEQA compliance, the County solicits and considers input from all interested tribal members through the Assembly Bill (AB) 52 Tribal Consultation process.

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Project Number Project Name PLN-2039
04/2019
Initial Study – Environmental Checklist
976 OSOS STREET, ROOM 206 | SAN LUIS OBISPO, CA 93408 |(805) 781-5252 | TTY/TRS 7-1-1 PAGE 25 OF 55 [email protected] | www.slocounty.ca.gov
Both tribes have a rich and complex history dating back as much as 10,000 years before present. The material culture and lifeways of the Northern Chumash appear to have been similar in many ways to their northern neighbors, the Salinan. The Northern Chumash had a complex system of social organization. They were hunter-gatherer-fishers and resided in numerous permanent villages and temporary camps, following annual cycles of hunting and gathering. Acorns provided a main staple of the diet.

The Arroyo Grande Creek corridor and other creeks in the region are considered archaeologically sensitive because they provided access to water, fish, and a diversity of plants and animals associated with the riparian zones.

A number of archaeological reports have been completed for past projects at or in the vicinity of Lopez Reservoir, including archival research of the entire Lopez Reservoir area (SWCA, 2018). Many of the archaeological investigations in the region resulted in significant archaeological finds. Consultation with Native American tribes for previous projects confirm the archaeological sensitivity of the area and the potential to encounter archaeological resources during ground disturbance activities.

Discussion
(a) Cause a substantial adverse change in the significance of a historical resource pursuant to § 15064.5? (b) Cause a substantial adverse change in the significance of an archaeological resource pursuant to § 15064.5?
(c) The project would not result in new inundation areas or other physical impacts that could affect cultural resources.
(d) Disturb any human remains, including those interred outside of dedicated cemeteries? In regard to (a) through (d), project effects would be limited to changes in the frequency and duration of water levels in currently managed surface waters, namely Lopez Reservoir and Arroyo Grande Creek. The project is not expected to result in new inundation areas, exposed areas, or physical improvements that could affect cultural resources. Periodic, incremental increases in flow in Arroyo Grande Creek due to project-related spill increases are expected to be well within the range of existing spill and storm flows in the Creek and are therefore not expected to adversely affect the building at 127 Bridge Street in Arroyo Grande.

Conclusion/Mitigation
The project would have no adverse effect on cultural resources and no mitigation measures are required.

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Project Number Project Name PLN-2039
04/2019
Initial Study – Environmental Checklist
976 OSOS STREET, ROOM 206 | SAN LUIS OBISPO, CA 93408 |(805) 781-5252 | TTY/TRS 7-1-1 PAGE 26 OF 55 [email protected] | www.slocounty.ca.gov
VI. ENERGY
Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Incorporated
Less Than
Significant
Impact No Impact
Would the project:
(a) Result in a potentially significant
environmental impact due to wasteful,
inefficient, or unnecessary consumption
of energy resources, during project
construction or operation?
☐ ☐ ☐ ☒
(b) Conflict with or obstruct a state or local
plan for renewable energy or energy
efficiency?
☐ ☐ ☐ ☒
Setting
Energy considerations under CEQA are intended to evaluate projects with respect to the goals of decreasing energy consumption and reliance on fossil fuels, and increasing reliance on renewable energy sources (CEQA Guidelines Appendix F). Relevant factors for consideration can include energy consumption required for the project, compliance with energy standards, and effects of the project on local and regional energy supplies, electricity demand, and transportation energy requirements.

Discussion
(a) Result in a potentially significant environmental impact due to wasteful, inefficient, or unnecessary consumption of energy resources, during project construction or operation? The project would not change operation of the Lopez Project in a way that would materially affect energy consumption for project operation, including water filtration and conveyance to the Contractors. The project would not require new construction.
(b) Conflict with or obstruct a state or local plan for renewable energy or energy efficiency? County energy efficiency programs are focused on building codes, construction workforce training, and residential energy efficiency assistance programs. These County efforts are not directly relevant to the project.

Additionally, the project would not conflict with or obstruct any plans to develop renewable energy resources or increase energy efficiency.

Conclusion/Mitigation
The project would have no effect on energy resources and no mitigation measures are required.

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Project Number Project Name PLN-2039
04/2019
Initial Study – Environmental Checklist
976 OSOS STREET, ROOM 206 | SAN LUIS OBISPO, CA 93408 |(805) 781-5252 | TTY/TRS 7-1-1 PAGE 27 OF 55 [email protected] | www.slocounty.ca.gov
VII. GEOLOGY AND SOILS
Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Incorporated
Less Than
Significant
Impact No Impact
Would the project:
(a) Directly or indirectly cause potential
substantial adverse effects, including the
risk of loss, injury, or death involving:
☐ ☐ ☐ ☒
(i) Rupture of a known earthquake
fault, as delineated on the most
recent Alquist-Priolo Earthquake
Fault Zoning Map issued by the
State Geologist for the area or
based on other substantial
evidence of a known fault? Refer
to Division of Mines and Geology
Special Publication 42.
☐ ☐ ☐ ☒
(ii) Strong seismic ground shaking? ☐ ☐ ☐ ☒
(iii) Seismic-related ground failure,
including liquefaction?
☐ ☐ ☐ ☒
(iv) Landslides? ☐ ☐ ☐ ☒
(b) Result in substantial soil erosion or the
loss of topsoil?
☐ ☐ ☒ ☐
(c) Be located on a geologic unit or soil that
is unstable, or that would become
unstable as a result of the project, and
potentially result in on- or off-site
landslide, lateral spreading, subsidence,
liquefaction or collapse?
☐ ☐ ☐ ☒
(d) Be located on expansive soil, as defined
in Table 18-1-B of the Uniform Building
Code (1994), creating substantial direct
or indirect risks to life or property?
☐ ☐ ☐ ☒
(e) Have soils incapable of adequately
supporting the use of septic tanks or
alternative waste water disposal systems
where sewers are not available for the
disposal of waste water?
☐ ☐ ☐ ☒
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04/2019
Initial Study – Environmental Checklist
976 OSOS STREET, ROOM 206 | SAN LUIS OBISPO, CA 93408 |(805) 781-5252 | TTY/TRS 7-1-1 PAGE 28 OF 55 [email protected] | www.slocounty.ca.gov
Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Incorporated
Less Than
Significant
Impact No Impact
(f) Directly or indirectly destroy a unique
paleontological resource or site or
unique geologic feature?
☐ ☐ ☐ ☒
Setting
The project area has very steeply sloping terrain around the shoreline of Lopez Reservoir, with gently sloping and level land bordering Arroyo Grande Creek downstream from the dam. The reservoir is not in the County’s geologic study area and is not in a mapped zone for landslide risk. There are potentially active faults trending northwest to southeast immediately downstream from the dam.

Bedrock geology in the vicinity of the reservoir includes the Monterey Formation and the Santa Margarita Sandstone, which have high sensitivity for paleontological resources. There are Quaternary sedimentary formations in alluvial channels such as Arroyo Grande Creek. The soils map for the region indicates many different soil units, with variable characteristics.

The entire county is mapped as a seismically active area. The bulk of the reservoir and the downstream area is mapped as a D2 hazard zone based on the USGS Seismic Design Standards. A seismic retrofit of the dam was completed in 2006.

Discussion
(a) Directly or indirectly cause potential substantial adverse effects, including the risk of loss, injury, or death involving:
(a-i) Rupture of a known earthquake fault, as delineated on the most recent Alquist-Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on other substantial evidence of a known fault? Refer to Division of Mines and Geology Special Publication 42. (a-ii) Strong seismic ground shaking?
(a-iii) Seismic-related ground failure, including liquefaction? (a-iv) Landslides?
In regard to seismic hazards, including (a-i) through (a-iv), the project would not alter operation of the Lopez Project, including the dam, spillway, and downstream channel, in a manner that would alter the seismic susceptibility of these project features. The project would not require construction of new infrastructure that would be subject to seismic design codes.
(b) Result in substantial soil erosion or the loss of topsoil? The project would not result in Lopez Reservoir water level fluctuations or Arroyo Grande Creek flows that exceed existing conditions. The frequency and duration of high-water conditions in the reservoir may increase. This is not expected to result in an increase in shoreline instability or erosion.

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Project Number Project Name PLN-2039
04/2019
Initial Study – Environmental Checklist
976 OSOS STREET, ROOM 206 | SAN LUIS OBISPO, CA 93408 |(805) 781-5252 | TTY/TRS 7-1-1 PAGE 29 OF 55 [email protected] | www.slocounty.ca.gov
The quantity of water lost over the dam due to spill events may increase slightly (an estimated additional 26,809 AF or 9.2% increase over 51 years) from existing conditions. Based on modeling, spill events are estimated to occur 21 times over the next 51 years compared to 20 times if the project is not implemented.

Project-related increases in spill quantities would be within the range of the existing flow conditions in the creek downstream of the dam, including the gage downstream from the dam, the Arroyo Grande stream gage near Stanley Avenue, and at the 22nd Street Bridge (Figures 4, 5, and 6). As such, they are not expected to significantly increase channel scour or bank erosion or otherwise alter existing sediment transport processes in the creek.
(c) Be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the project, and potentially result in on- or off-site landslide, lateral spreading, subsidence, liquefaction or collapse?
(d) Be located on expansive soil, as defined in Table 18-1-B of the Uniform Building Code (1994), creating substantial direct or indirect risks to life or property? (e) Have soils incapable of adequately supporting the use of septic tanks or alternative waste water disposal systems where sewers are not available for the disposal of waste water? In regard to (c) through (e), these conditions are not applicable because the project does not include new construction, installation of new septic tanks, or alternative wastewater disposal systems. (f) Directly or indirectly destroy a unique paleontological resource or site or unique geologic feature? While extensive areas around Lopez Reservoir are underlain by geologic units with high sensitivity for paleontological resources, the project would not require any ground disturbance or rock removal. Therefore, the project would not affect paleontological resources.

Conclusion/Mitigation
The project would not involve new construction or alteration of existing facilities that would trigger concerns related to seismic risk or disturbance of paleontological resources. The changes in water operations proposed for the project could result in changes in water levels in Lopez Reservoir and periodic, incremental increases in flow in Arroyo Grande Creek channel during spill events. Such changes are expected to be within the range of existing conditions and are not expected to result in an increase in sedimentation or erosion. No mitigation measures are necessary.

VIII. GREENHOUSE GAS EMISSIONS
Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Incorporated
Less Than
Significant
Impact No Impact
Would the project:
(a) Generate greenhouse gas emissions,
either directly or indirectly, that may
have a significant impact on the
environment?
☐ ☐ ☐ ☒
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Project Number Project Name PLN-2039
04/2019
Initial Study – Environmental Checklist
976 OSOS STREET, ROOM 206 | SAN LUIS OBISPO, CA 93408 |(805) 781-5252 | TTY/TRS 7-1-1 PAGE 30 OF 55 [email protected] | www.slocounty.ca.gov
Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Incorporated
Less Than
Significant
Impact No Impact
(b) Conflict with an applicable plan, policy or
regulation adopted for the purpose of
reducing the emissions of greenhouse
gases?
☐ ☐ ☐ ☒
Setting
Greenhouse Gas (GHG) Emissions are broadly recognized as contributing to an increase in the earth’s average surface temperature and long-term changes in climate. From the perspective of Public Works’ typical projects, the most common GHG emissions occur from burning fossil fuels, such as from vehicle exhaust. Additional sources include methane and nitrous oxide from agricultural activities, ozone that forms from precursors in vehicle emissions, and CFCs and hydrofluorocarbons in aerosols, building insulation, and fire suppression and, refrigeration materials.

Discussion
(a) Generate greenhouse gas emissions, either directly or indirectly, that may have a significant impact on the environment?
The project would not change Lopez Project operations in a material way that would affect energy use or associated emissions. The project would not change the extent to which water from Lopez Reservoir is used for agricultural irrigation and would not result in a change in existing agricultural uses. The project would not require construction, so would not generate construction emissions. (b) Conflict with an applicable plan, policy or regulation adopted for the purpose of reducing the emissions of greenhouse gases?
The project would not increase transportation-related emissions and would not affect other sources of greenhouse gas emissions. Accordingly, the project would not conflict with any applicable plans, policies, or regulations intended to reduce greenhouse gas emissions.

Conclusion/Mitigation
The project would not alter existing GHG emissions or generate new sources of emissions. No mitigation measures are necessary.

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Project Number Project Name PLN-2039
04/2019
Initial Study – Environmental Checklist
976 OSOS STREET, ROOM 206 | SAN LUIS OBISPO, CA 93408 |(805) 781-5252 | TTY/TRS 7-1-1 PAGE 31 OF 55 [email protected] | www.slocounty.ca.gov
IX. HAZARDS AND HAZARDOUS MATERIALS
Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Incorporated
Less Than
Significant
Impact No Impact
Would the project:
(a) Create a significant hazard to the public
or the environment through the routine
transport, use, or disposal of hazardous
materials?
☐ ☐ ☐ ☒
(b) Create a significant hazard to the public
or the environment through reasonably
foreseeable upset and accident
conditions involving the release of
hazardous materials into the
environment?
☐ ☐ ☐ ☒
(c) Emit hazardous emissions or handle
hazardous or acutely hazardous
materials, substances, or waste within
one-quarter mile of an existing or
proposed school?
☐ ☐ ☐ ☒
(d) Be located on a site which is included on
a list of hazardous materials sites
compiled pursuant to Government Code
Section 65962.5 and, as a result, would it
create a significant hazard to the public
or the environment?
☐ ☐ ☐ ☒
(e) For a project located within an airport
land use plan or, where such a plan has
not been adopted, within two miles of a
public airport or public use airport,
would the project result in a safety
hazard or excessive noise for people
residing or working in the project area?
☐ ☐ ☐ ☒
(f) Impair implementation of or physically
interfere with an adopted emergency
response plan or emergency evacuation
plan?
☐ ☐ ☐ ☒
(g) Expose people or structures, either
directly or indirectly, to a significant risk
of loss, injury or death involving wildland
fires?
☐ ☐ ☐ ☒
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Project Number Project Name PLN-2039
04/2019
Initial Study – Environmental Checklist
976 OSOS STREET, ROOM 206 | SAN LUIS OBISPO, CA 93408 |(805) 781-5252 | TTY/TRS 7-1-1 PAGE 32 OF 55 [email protected] | www.slocounty.ca.gov
Setting
Based on a 2021 review of the Envirostor database, there are no documented hazardous storage or release sites in the vicinity of Lopez Reservoir.

The site is not in close proximity to serpentinite or ultramafic rock outcrops known to contain naturally occurring asbestos. The closest such rock formations are approximately 10 miles west of the project location.

The project is within a ‘very high’ Fire Hazard Severity Zone and is in a State (California Department of Forestry and Fire Protection, CalFire) fire responsibility area. CalFire’s Airport Station is located approximately 11 miles from the project site and response time is in the range of 10 to 20 minutes.

The Arroyo Grande Creek corridor downstream from Lopez Dam is a mapped dam inundation zone. Property within the inundation zone include for example, agricultural land, residential areas as well as portions of the community of Oceano and the City of Arroyo Grande.

Discussion
(a) Create a significant hazard to the public or the environment through the routine transport, use, or disposal of hazardous materials?
(b) Create a significant hazard to the public or the environment through reasonably foreseeable upset and accident conditions involving the release of hazardous materials into the environment? (c) Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste within one-quarter mile of an existing or proposed school? (d) Be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code Section 65962.5 and, as a result, would it create a significant hazard to the public or the environment?
In regard to (a) through (d), the project would not require any construction, demolition, ground disturbance, or any other activity requiring the transport, use, or disposal of any hazardous materials. (e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project result in a safety hazard or excessive noise for people residing or working in the project area? Lopez Reservoir is not located in an airport review area. The San Luis Obispo airport review area is over five miles to the west, and the Oceano Airport review area is roughly 8 miles to the southwest of Lopez Reservoir.

The downstream portions of Arroyo Grande Creek are in the Oceano airport review area. The project-related increases in flow in Arroyo Grande Creek would be within the range of existing flows, are separated from the Oceano Airport by the existing levees, and are not expected to result in a safety hazard for the airport. (f) Impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan?
The project would not require any transportation-related actions, road closures, or changes in land use and would not alter or interfere with emergency response or emergency evacuation plans.

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Project Number Project Name PLN-2039
04/2019
Initial Study – Environmental Checklist
976 OSOS STREET, ROOM 206 | SAN LUIS OBISPO, CA 93408 |(805) 781-5252 | TTY/TRS 7-1-1 PAGE 33 OF 55 [email protected] | www.slocounty.ca.gov
(g) Expose people or structures, either directly or indirectly, to a significant risk of loss, injury or death involving wildland fires?
The project would not require any physical actions that would increase the risk of wildland fires, increase exposure of people or structures to wildland fires, or interfere with wildland fire response.

Conclusion/Mitigation
The project would not have any effects related to hazards or hazardous materials and no mitigation measures are necessary.

X. HYDROLOGY AND WATER QUALITY
Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Incorporated
Less Than
Significant
Impact No Impact
Would the project:
(a) Violate any water quality standards or
waste discharge requirements or
otherwise substantially degrade surface
or ground water quality?
☐ ☐ ☐ ☒
(b) Substantially decrease groundwater
supplies or interfere substantially with
groundwater recharge such that the
project may impede sustainable
groundwater management of the basin?
☐ ☐ ☒ ☐
(c) Substantially alter the existing drainage
pattern of the site or area, including
through the alteration of the course of a
stream or river or through the addition
of impervious surfaces, in a manner
which would:
☐ ☐ ☒ ☐
(i) Result in substantial erosion or
siltation on- or off-site;
☐ ☐ ☒ ☐
(ii) Substantially increase the rate or
amount of surface runoff in a
manner which would result in
flooding on- or off-site;
☐ ☐ ☒ ☐
(iii) Create or contribute runoff water
which would exceed the capacity
of existing or planned stormwater
drainage systems or provide
substantial additional sources of
polluted runoff; or
☐ ☐ ☒ ☐
(iv) Impede or redirect flood flows? ☐ ☐ ☒ ☐
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Project Number Project Name PLN-2039
04/2019
Initial Study – Environmental Checklist
976 OSOS STREET, ROOM 206 | SAN LUIS OBISPO, CA 93408 |(805) 781-5252 | TTY/TRS 7-1-1 PAGE 34 OF 55 [email protected] | www.slocounty.ca.gov
Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Incorporated
Less Than
Significant
Impact No Impact
(d) In flood hazard, tsunami, or seiche
zones, risk release of pollutants due to
project inundation?
☐ ☐ ☒ ☐
(e) Conflict with or obstruct implementation
of a water quality control plan or
sustainable groundwater management
plan?
☐ ☐ ☒ ☐
Setting
Water Quality
Lopez Reservoir supplies freshwater to the Lopez Water Treatment Plant. The watershed is surveyed and assessed on a regular basis for potential water quality impacts. Lopez Lake is vulnerable to contamination from wastewater generation at the Lopez Lake Recreation Area and livestock near the reservoir. The Lopez Water Treatment Plant water quality is also rigorously tested before being supplied to Contractors. The treated drinking water is monitored for a wide range of naturally occurring and anthropogenic contaminants.

Water monitoring results are available for review at https://www.slocounty.ca.gov/Departments/PublicWorks/Forms-Documents/Water-Resources/Water-Quality-Reports.aspx.

The Arroyo Grande Creek below Lopez Reservoir is on the state’s federal Clean Water Act Section 303(d) list (SWRCB 2021) of impaired water bodies for Escherichia coli and fecal coliform (bacterial contaminants indicative of human and animal fecal waste). Proposed water quality impairment additions for the same reach include nickel, nitrate, toxicity, and benthic community effects.

Reservoir and Surface Hydrology
Lopez Reservoir has a capacity of 49,388 AF and when near capacity, a surface area of nearly 1,000 acres.

Water levels can fluctuate in response to seasonal precipitation, long-term climatic conditions, and Contractor demand.

Based on decades of supply and demand, the District has determined that the safe yield of the reservoir is 8,730 AFY. The “safe yield” is the maximum amount of water that can be consistently extracted from the reservoir on an annual basis without the reservoir reaching minimum pool or other limiting constraints.

Currently, the safe yield represents 4,530 AFY of Contractor entitlements and 4,200 AFY of downstream releases. Downstream releases have averaged approximately 3,640 AFY for the past 10+ years from 2007 to the present. The District generally relies on post-2007 volumes as that is representative of the Lopez Project operations since a seismic retrofit of the dam was completed (2002) and the adoption of an Interim Downstream Release Schedule (IDRS) in 2007.

In 2015 due to intense drought conditions, the reservoir volume dropped below 20,000 AF. The District’s Board of Supervisors, following the State’s drought declaration, declared a water emergency related to Zone 3. In response, the District implemented a Low Reservoir Response Plan (LRRP). In August 2021 the District declared a local drought emergency and enacted the LRRP. The purpose of the plan is to limit municipal and downstream releases to preserve and extend water supplies in the reservoir for a 3- to 4-year period during intense drought conditions.

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Project Number Project Name PLN-2039
04/2019
Initial Study – Environmental Checklist
976 OSOS STREET, ROOM 206 | SAN LUIS OBISPO, CA 93408 |(805) 781-5252 | TTY/TRS 7-1-1 PAGE 35 OF 55 [email protected] | www.slocounty.ca.gov
Groundwater
The reservoir is not located in an identified groundwater basin. However, Arroyo Grande Creek from the dam to where the creek flows under Highway 101 overlies the Santa Maria River Valley Groundwater Basin (SMRVGB), Arroyo Grande Subbasin. Arroyo Grande Creek from Highway 101 to the coast overlies the SMRVGB Santa Maria Subbasin. The service areas of the Lopez Contractors, with the exception of portions of Pismo Beach and all of CSA-12 (Avila), overlay the SMRVGB. Arroyo Grande, Grover Beach, Oceano Community Services District and Pismo Beach are the Contractors currently relying on groundwater from the SMRVGB.

The California Department of Water Resources 2019 groundwater basin categorization identified the Santa Maria and Arroyo Grande Subbasins as very low priority. Prioritization is based on, among other factors, the degree to which the groundwater serves as a primary source of water, and identified impacts such as saline intrusion or overdraft. The County is nonetheless preparing a Groundwater Sustainability Plan for the Arroyo Grande Subbasin to better understand the system and to support the HCP under development.

Additionally, the communities that rely on the Santa Maria subbasin (Pismo Beach, Grover Beach, Arroyo Grande, and Oceano, referred to as the North Cities Management Area) have been monitoring conditions in order to manage their water supply. A series of five coastal area monitoring well clusters showed evidence of seawater intrusion of the basin in 2009 (Central Coast Blue 2018). In response, the local water users entered into an agreement to limit municipal groundwater pumping to reduce the threat of intrusion. Target withdrawal amounts for each user were set to limit groundwater use to roughly a quarter of the total entitlements (GSI Water Solutions, Inc. 2021). On-going monitoring is used to track the condition of the aquifer, using the five “sentry wells” along the coast as indicators of potential intrusion. The goal is to maintain groundwater gradients (i.e., flow) from east (where municipal withdrawal wells are located) to west (the coastline) to minimize the potential for seawater intrusion. Groundwater quality monitoring is focused on indicators of seawater intrusion.

Based on the State Water Quality Control Board’s GeoTracker, the project is not in or near any sites that require groundwater remediation or permitted facilities that could impact groundwater.

Discussion
(a) Violate any water quality standards or waste discharge requirements or otherwise substantially degrade surface or ground water quality?
Project-related changes in water levels in Lopez Reservoir are not expected to result in adverse effects to surface water or groundwater quality. No construction activities, new land uses, or other changes are proposed that could introduce new sources of contaminants in the project area. Project-related changes to Lopez Reservoir water levels and downstream flows would constitute relatively minor changes compared to existing conditions and would not change existing circulation or flushing conditions to an extent that would have the potential to affect water quality. As such, the project is not expected to result in changes to the existing water quality conditions in the reservoir or downstream water, including groundwater conditions that are managed with downstream releases.
(b) Substantially decrease groundwater supplies or interfere substantially with groundwater recharge such that the project may impede sustainable groundwater management of the basin? The project would not change existing downstream releases or the Contractors’ maximum annual groundwater withdrawal amounts. As such, the project would not decrease groundwater supplies or interfere with any existing groundwater management programs. The project-related increases in spill have the potential to incrementally increase groundwater recharge.

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Project Number Project Name PLN-2039
04/2019
Initial Study – Environmental Checklist
976 OSOS STREET, ROOM 206 | SAN LUIS OBISPO, CA 93408 |(805) 781-5252 | TTY/TRS 7-1-1 PAGE 36 OF 55 [email protected] | www.slocounty.ca.gov
(c) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river or through the addition of impervious surfaces, in a manner which would:
(c-i) Result in substantial erosion or siltation on- or off-site? (c-ii) Substantially increase the rate or amount of surface runoff in a manner which would result in flooding onor off-site? (c-iii) Create or contribute runoff water which would exceed the capacity of existing or planned stormwater drainage systems or provide substantial additional sources of polluted runoff? (c-iv) Impede or redirect flood flows?
In regard to (c-i) through (c-iv), the project would not require construction of new facilities that could alter existing drainage patterns or increase impervious surfaces or stormwater runoff. Project-related hydrologic changes in reservoir levels and downstream flows would be within the range of existing conditions; as such, the project would not alter existing conditions regarding reservoir storage and downstream passage of flood flows.

As described in the introduction section (pages 5 - 6), the effects of project-related increases on peak flow rates in Arroyo Grande Creek resulting from spill over the dam are depicted graphically for three different locations along Arroyo Grande Creek shown in Figure 3: just below Lopez Dam (modeling results in Figure 4), the AG Stream Gage near Stanley Avenue in the City of Arroyo Grande (Figure 5), and the 22nd Street bridge in Oceano (Figure 6). These locations were selected because there are flow monitoring devices that have been in use at these sites for many years. Additionally, the 22nd Street location is in the District’s Zone 1/1A managed flood control channel, which consists of levees along the lower three miles of Arroyo Grande Creek.

At all three locations, project-related increases in spill are not predicted to increase the magnitude of flow in the creek during the maximum spill event. For smaller spill events, the project-related increases would be infrequent and would not approach the magnitude of the highest expected spill- or non-spill related flows in the creek.

For example, at the 22nd Street location the channel capacity is 5,000 cfs, which is indicated with the dashed line in Figure 6. The figure shows that one existing spill event during the 51-year modeling period is predicted to exceed the channel capacity (i.e., has the potential to overtop the levees). All other predicted channel flows resulting from spill events, including the project-related increases (orange section of bars labeled “difference”) would be well below that magnitude and would be expected to be contained within the flood control channel.

For reference, the 100-year discharge event in Arroyo Grande Creek is 19,500 cfs (SLO Watershed Project, undated). Additionally, because reservoir water levels are generally higher in winter and spring when rainfall is highest and demand is lowest, most spill events are expected to occur during this timeframe. (d) In flood hazard, tsunami, or seiche zones, risk release of pollutants due to project inundation? The project would not alter existing flood hazard zones or increase the areas of inundation associated with the reservoir or the Arroyo Grande Creek corridor. As discussed in (c), the project-related increases in spill are not expected to result in a material increase in the frequency or magnitude of flood conditions. Therefore, the project is not expected to increase the risk of flood damage or pollutant release due to flooding.

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Arroyo Grande City CouncilSeptember 27, 2022

Arroyo Grande City Council
September 27, 2022