Central Coast Blue
Regional Recycled
Water Authority/
Joint City Council
Meeting
WELCOME
3 1
2 3
4 5
Central Coast Blue Regional Recycled
Water Authority Status Report
Project Update
Council Q&A
Local Hiring Alternatives for Central
Coast Blue Construction Contracts
Council Q&A and Public Comment
AGENDA
CENTRAL COAST BLUE
REGIONAL RECYCLED
WATER AUTHORITY
STATUS REPORT
5 CCBRRWA Update
Staffing/Contract Services
Interim Secretary/Clerk
Interim Attorney
Treasurer
Financial Services/IT
Funding/Financing
Bank Account Established
Operational Expense Billing &
Reimbursement
Adopted Preliminary FY 23/24
Budget
Other
Adopted Conflict of Interest Code
Grover Beach Office Space
Website Updates
Governance Page
Subscription Feature
PROJECT
UPDATE
PAGE 7
Central
Coast Blue
ONE COMMUNITY.
ONE WATER.
ONE FUTURE.
Central Coast Blue is a regional water
reuse project that will create a new, local
water supply and protect the Santa Maria
Groundwater Basin from seawater intrusion.
A partnership between the cities of Arroyo
Grande, Grover Beach, and Pismo Beach,
this collaborative, multi-phase effort will
benefit Southern San Luis Obispo County
for generations to come.
8 HOW IT WORKS
PAGE
9 Project
Location
PAGE 10
Project
Location
11 Design Progress
60% Design Completed
90% Design • Summer 2023
PG&E Service
Application Submitted
AWPF
12 Design Progress
Geotechnical Investigation
Completed
Pipeline Alignments Finalized
UPRR Crossing Application
Submitted
Caltrans Permit Application • June 2023
60% Design • September 2023
DISTRIBUTED INFRASTRUCTURE
13 Permitting Progress
EIR Addendum • Scheduled for Release 6/7
EIR Addendum Public
Workshop • Special JPA Meeting 6/19
Consolidated Coastal
Development Permit
Application
14 25%
50%
25%
Financing Plan
$93M
Planned LowInterest Loans
$47M
Planned
Federal Grants
$23M
Central Coast Blue will be
funded by a combination
of grants, low-interest loans
and ratepayer revenues.
Planned State
Grants
$23M
15 Funding Update
$14 million
Title XVI WIIN Act
Program
$1 million
Proposition 1 IRWM
Grant Program
$23 million
Water Recycling Funding Program
$15M
Prop 1 Groundwater Grant
Program
$8M
16 Funding Update
$0M
$5M
$10M
$15M
$20M
$25M
Federal Grants State Grants
$14M
$24M
$9M
$23M
17 Project Schedule
FUNDING/FINANCING
FINAL DESIGN
CONSTRUCTION
CONTRACT BID
AND AWARD
CONSTRUCTION PERMITTING
START-UP
2023 2024 2025 2026
COUNCIL Q&A
LOCAL HIRING
ALTERNATIVES FOR
CENTRAL COAST BLUE
CONSTRUCTION
CONTRACTS
20 Recommendation
Receive a report on alternatives and
considerations to advance local hiring for
construction of the Central Coast Blue Project.
No formal action will be taken.
Objective
Prioritize employment of local workers
on the Central Coast Blue Project
22 Local Hiring Alternatives
Local Hire
Good-Faith
Effort Program
Project Labor
Agreement
Local Hiring
Mandate
23 Local Hire Good-Faith Effort Program
Establishes process project
contractors must follow to
employ local workers
Can include local worker
participation goal
Contractors required to
document “good-faith” efforts
made to meet program
requirements
24 Project Labor Agreement
Pre-hire collective bargaining
agreement between project
owner and construction trades
Establishes terms and conditions
of employment
Can include local worker
participation goals
25 Local Hire Mandate
Mandates the use of local
workers
Must be justified with
substantial reason for local
hiring preference
Susceptible to legal
challenges
26 Local Agency Experience
CITY OF SAN LUIS OBISPO
WRRF Project CWA
• 30% local hire goal
• 83% local hire thru March
2023
• Local defined as SLO, SB,
Monterey & Ventura County
Residents
City-Wide CWA Analysis
• Extensive stakeholder outreach
& historical local hire review
• 90% of hours on 14 projects
by local workers
• CWA for three large projects
with 50% local hire goal
27 WWTP Redundancy Project
• CWA negotiated in August 2019
• 30% local hire goal
• 62% local hire thru December 2022
• Local defined as SSLOCSD service area,
SLO, SB, Monterey & Ventura County
Residents
Local Agency Experience
SOUTH SAN LUIS OBISPO COUNTY SANITATION DISTRICT
28 Water Reclamation Facility Project
• Local-Hire Good Faith Effort Program
• Limited to distributed infrastructure
• Local hire and subcontractor outreach
during bidding
• Continued outreach during construction
Local Agency Experience
CITY OF MORRO BAY
29 CIP Project Local Hire Evaluation
Local Agency Experience
CITY OF PISMO BEACH
Project Name Local Worker Participation
Shell Beach Streetscape 100%
Pier Plaza 95%
Five Cities Lift Station 95%
Shell Beach Reservoir No. 1 100%
Heights Water System 0%
Pismo Pier 100%
LOCAL HIRE GOOD-FAITH EFFORT
PROGRAM PROJECT LABOR AGREEMENT LOCAL HIRING MANDATE
BENEFITS
• Establishes local worker participation
goal
• Consistent with Cost Share Agreement
• Does not impose limitations on
employment of craft workers
• Establishes local worker participation goal
• Work stoppages prohibited
• Prescriptive dispute resolution procedures
• Mandates local worker participation
requirement
RISKS
• Failure to meet local worker goals
• Failure to meet local worker goals
• Reduced competition
• Limits utilization of non-union contractor
existing workforce
• Time required to negotiate agreement prior
to bid phase could impact schedule
• Failure to meet local worker requirement
• Legal challenges
• Potential lack of significant justification for
implementation
• Time required to implement prior to bid
phase could impact schedule
COSTS
• Lowest implementation cost
• Development & adoption of program by
Pismo Beach
• Incorporation of program into
construction contracts
• Contractor implementation
• Ongoing monitoring & oversight during
construction
• Moderate implementation cost
• Legal counsel & consultant costs to negotiate
agreement
• Potential double-payment of fringe benefits
to offset union trust fund benefits
requirements
• Contractor implementation
• Ongoing monitoring & oversight during
construction
• Fewer competitive bids
• Highest implementation cost
• Economic analysis to justify implementation
of mandate
• Legal fees to craft ordinance
• Contractor implementation
• Ongoing monitoring & oversight during
construction
POTENTIAL BENEFITS, RISKS & COSTS
COUNCIL Q&A
AND PUBLIC
COMMENT
THANK YOU