North Morro Bay Water Improvements
Department of Public Works
May 12, 2026
1 Project Background
2 Pre-2018 One Water Plan
3 Long History
• 1997 Water Master Plan identified need for more storage at Nutmeg tank site
• Project was taken to Planning Commission in early 2010s with two tank concept
• Planning Commission objected to construction of an
additional tank
2018 One Water Plan
4 2018 OneWater Plan clearly identified
• Fire flow deficiencies
• Fire storage deficiencies
• Low pressure areas (20 residual PSI)
• Aging infrastructure
• Limited connectivity between pressure zones in NMB
Hydraulic modeling showed portions of the Blanca, Elena, and Nutmeg zones dropped below minimum pressure targets during fire-flow conditions.
2018 OneWater Plan
5 Original improvement program included:
• Larger Nutmeg Tank (1M gallon)
• Elena Tank improvements
• Booster upgrades
• PRVs
• Multiple pipeline projects
Cannon brought project to 30% design. Staff and consultant estimated $19M project cost.
2018 OneWater Plan
6 Alternative Concept
7 Alternative Concept
8 As implementation advanced, utility operators encouraged evaluation of alternatives. Concerns included:
• Difficult access to the Nutmeg site
• Cost and complexity of major tank construction
• Potential water quality impacts from increased storage volume
In addition, there were concerns about disruption to
neighborhood.
Alternative Concept
9 Rather than focusing primarily on adding storage, the City explored whether pressure and fire flow issues could be addressed through improved system operations and
connectivity.
• Enabled opportunity to take advantage of fire storage surplus in Kings Tank
Revised Project
10 Revised Project
11 Cannon evaluated whether the north zones could function more efficiently as an interconnected system.
Revised approach focuses on:
• Increasing pressure in the Elena Zone
• Improving interconnections between zones
• Targeted pipeline upgrades
• Booster and PRV improvements
• Use of available Kings Tank storage
Revised Project
12 This strategy improves the system’s ability to move water into North Morro Bay during high-demand and fire-flow
conditions.
Modeling indicates the revised approach can significantly improve both pressure performance and fire flow reliability while eliminating several major projects from the original plan.
Expected cost savings by eliminating new water tank.
Project Scope and Improvements
13 Project Development
14 Phased Approach
• Budget and community impact advantages
• Future phase funding can be secured prior to work
• Each phase brings unique design challenges and construction needs
Project Phases
15 Phase 1 (current design contract) • Adjust/upsize PRV’s • Atascadero, Erroll, Sunset, and Sequoia
• Add/Upsize pipelines • Elena/Alder • Errol • Vashon Booster Station • Demo failing Elena Tanks • Nutmeg Tank investigation Project Phases
16 Phase 2
• Add or upsize pipelines
• Alder
• Main St
• Las Vegas
• Cloisters Bike Path near
Elena
Project Phases
17 Phase 3
• Add/upsize pipelines
• Main
• Under Hwy 1 at Atascadero
• Bike Path near Atascadero
• Upsize PRV
• Atascadero
Project Phases
18 Phase 4 • Add/Upsize Pipelines • Quintana Rd • Sunset St • Nutmeg tank fill lines • Blanca tank fill lines • Pump Station improvements • Nutmeg Tank rehabilitation • Decommission Vashon Booster Pump
Vashon Booster Station
19 Design Procurement
20 Procurement
21 Design services are needed prepare plans, specifications, estimates, and engineering services during construction.
Procurement
• Staff released RFP 12/16/25, proposals received 2/12/26 • Proposers: Cannon Corporation and MNS Engineers
• Qualifications based selection with Cannon selected
Selection of firms based on demonstrated competence and professional qualifications first, then negotiate a fair and reasonable fee. Based on Government Code § 4526.
Recommendation
22 Staff Recommendation
23 Staff recommends the City Council:
Award and authorize the City Manager to execute a professional services agreement with Cannon Corporation, for Design of Phase 1 and Environmental Permitting for all Phases of the North Morro Bay Water Improvements (Project) in the amount of $525,492 and authorize the City Manager to execute amendments if necessary not to exceed $52,549.00 for contingencies.
QUESTIONS
24