Zone 3 Contract Revisions
September 20, 2022
By: Benjamin A. Fine, P.E. –Director of Public Works/City Engineer Item 12.B
Background
2 Zone 3 Agencies
•Arroyo Grande –2,290 AF
•Oceano CSD –303 AF
•Grover Beach –800 AF
•Pismo Beach –892 AF
•CSA 12 –245 AF
3 2,290
303
800
892
245
Allocation
Arroyo Grande Oceano CSD Grover Beach Pismo Beach CAS 12
Current Contract and “Issues”
•1966 –Original Contract
•2000 –Restated and Amended need for obtaining bonds
•2010 –Amended allow for bond refinancing
•“Surplus Water”
4 892 AF 100 AF
Surplus Water
5 50.60%
6.70%
17.70%
19.70%
5.40%
100 AF
19.7 AF50.6 AF
Surplus Water
6 19.7 AF 10 AF
District
0 200
400
600
800
1000
1200
Surplus Allocation
0 100
200
300
400
500
600
700
800
900
1000
Surplus Allocation
Surplus Water
7 100 AF
0 200
400
600
800
1000
1200
Surplus Allocation
892 AF
100 AF100 AF
792 AF892 AF
Revised Contract
•Provides for storage rights
•Improves flexibility of multi-year water planning
•Allows for enhanced conjunctive use/portfolio management •Provides incentive to import SWP and preserve Lopez
•Meets current requirements for re-financing of the bonds 8 Benefits of Storage
9 0
200
400
600
800
1000
1200
1400
Year 1 Year 2 Year 3 Year 4
Allocation Stored
100 AF 250 AF 350 AF
Benefits of Storage
10 2,100 AF (2017)
Significant Revisions
•Contractor Storage –added (Art. 4, 7, 9, 15, 21)
•Surplus Water cost calculations –modified (Art. 4)
•Storage of SWP –added (Art. 7)
•Evaporation losses for stored water –added (Art. 7)
•Address downstream release obligations –modified (Art. 4, 7, 17)
•Spill provisions for stored water –added (Art. 4, 7)
•Turnout delivery capacity limitations –modified (Art. 9) •Variable charges calculation changes –modified (Art. 14) •Bond re-financing legal language –added (Art. 34)
11 Environmental Considerations
•Negative Declaration adopted by District –August 23,
2022
12 Other Agency Involvement
•Reviewed by:
•Sub-committee of Zone 3 TAC
•Consultants
•County P/W Staff
•Legal Counsels
•Financial consultants
•Bond counsel
•Unanimously approved by Zone 3 Advisory Committee
on August 11, 2022
•Unanimously approved by County BOS on August 23,
2022
13 Conclusion and Recommendation
•Revised contract provides for storage rights in Lake Lopez •Encourages protection of our local resource
•Allows for better conjunctive use of other water supplies 14 Tree Wells Fiscal Impacts
No Direct Fiscal Impacts
Questions?
Zone 3 Contract Revisions Item 12.B