PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #12.C
SUBJECT/TITLE:
PARTICIPATION IN THE COUNTY OF SAN LUIS OBISPO DESALINATED WATER STUDY
RECOMMENDATION:
Adopt a Resolution approving participation in the County of San Luis Obispo Desalination Executable Solution and Logistics (DESAL) Plan.
BACKGROUND:
The City of Pismo Beach has three sources of water: Lopez Lake, the California State Water Project, and the Santa Maria Groundwater Basin. While these sources have been historically reliable over the past twenty years, two historical droughts have occurred, and expectations have increased that longer dry periods will occur between wetter wet periods.
The City has considered a number of possible supplemental water supply sources to protect the City against prolonged drought and the impacts of such a drought, including possible seawater intrusion into the Santa Maria Groundwater Basin. These options include: desalination, connection to Diablo Canyon’s desalination plant, raising the Lopez Dam spillway, purchase of additional State Water and/or State Water Drought Buffer, and recycled wastewater. Of these, recycled wastewater has been identified as the most feasible, which led the City to develop a partnership with the Cities of Grover Beach and Arroyo Grande for the Central Coast Blue recycled water project. Central Coast Blue, for which the City is the lead agency, will bring a sufficient supply of recycled water to the region from a treatment facility in Grover Beach to provide supply reliability during extended drought and minimize the risk of seawater intrusion into the groundwater supply.
The participating cities approved a Joint Powers Authority agreement in 2022 and the project is expected to be operational by mid-2026 with additional groundwater supply available by late 2026.
While Central Coast Blue remains the City’s focus for the near and intermediate term, this project has demonstrated that supplemental water projects take a lot of time to move from planning to design to construction. The City began work on the Regional Groundwater Sustainability Project, now known as Central Coast Blue, in 2014 and expects to break ground on construction early next year, marking the project’s tenth year. With this in mind, the County of San Luis Obispo has taken the lead to start the initial phases of a desalinated water study now, in hopes that the project will be ready to construct, if feasible, within 15 to 20 years.
County Desalination Study
Due to proximity to the ocean, and future water supply quantity, quality and reliability needs, the 2019 San Luis Obispo County Integrated Regional Water Management Plan and 2012 Countywide Master Water Report identify desalination as a water resource
12.C-1Council Agenda 4-4-2023
management strategy to pursue. While desalination can provide a local, reliable, and sustainable water supply for decades to come, desalination projects take much longer to plan for, permit and construct than recycled water.
The San Luis Obispo County Flood Control and Water Conservation District intends to develop the Desalination Executable Solution and Logistics (DESAL) Plan, a study of the feasibility of developing a desalinated water supply over the next several years via a public process that, when complete, will ultimately contain balanced recommendations related to responsibly advancing the implementation of a regional desalination project.
The County of San Luis Obispo has commissioned a five-phased study to evaluate and plan for a potential desalination plant in the region. The DESAL Plan, during Phases 1 and 2, offers a no-cost, preliminary/exploratory process to incrementally evaluate a potential regional seawater desalination plant as well as examine associated factors, issues, technology, and budgetary components, thereby supplying the City Council with information to address long-term water sustainably.
Recognizing that a desalination project will take a long time to plan for, permit, and construct, staff recommends that the City Council authorize staff to participate in the initial phases of the plan as a very long-term option. The City has participated in the County coordinated Countywide Water Action Team (CWAT), an informal working group of staff from entities across the county with water supply planning responsibilities, to work together to ensure the region has a safe reliable source of water for generations to come.
CWAT has been working to develop a conceptual five-phase approach to developing a DESAL Plan and project. All phases, including an anticipated schedule for Phase 1, are described in the following table:
Phase 1: DESAL Plan Agreement Phase
The County of San Luis Obispo Flood Control and Water Conservation District Board gave direction to proceed on a path to desalination (Fall 2022; completed by County staff)
Get Resolutions from agencies agreeing to be evaluated in the DESAL Plan (Spring 2023; the current recommended action)
Develop and vet scope of work with participating agencies (Spring/Summer 2023)
Establish stakeholder and public engagement process (implement through all phases)
Seek/pursue grant opportunities (continue through all phases) Review scope of work/engagement process with Board/direction to proceed (Summer 2023)
12.C-2Council Agenda 4-4-2023
Phase 2: DESAL Plan Development Phase
District to procure consultant
Implement public engagement process
Identify project concept alternatives, vet, and analyze Rank and select preferred project
Phase 3: Project Development Agreement Phase
Commitment from project partners to pay for and proceed with the project development and all efforts necessary to get to the construction phase Phase 4: Project Development Phase
Detailed project design, permits and environmental processes, operations and distribution plans, right of way negotiations, water supply and Governance Agreement negotiations, Financing plan
Phase 5: Project Governance Agreement and Construction Phase Execute Governance agreement for construction and ongoing maintenance The San Luis Obispo County Flood Control and Water Conservation District will be the lead agency and contract administrator for the DESAL Plan and is requesting that water- purveying agencies that wish to be evaluated during the development of the DESAL Plan adopt resolutions approving participation.
While the City anticipates that Central Coast Blue can adequately address future water supply reliability, it may be valuable to develop a better understanding of the benefits and impacts of a regional desalination project to address long-range growth and possible unanticipated climate change impacts. There is only minimal cost to the City associated with developing the plan, in the form of staff time, and the City can opt out at any point in the development of the plan. Staff recommends participation to the point that information identifying the costs and benefits of this potential supply to the City can be determined.
All other water agencies in the county are initially participating in the plan.
Conclusion and Recommendation
Based on how long a regional desalination project will take to develop, and the long-term uncertainty in climate and water supply, staff recommends that the City Council adopt a Resolution (Attachment 1) approving participation in the County of San Luis Obispo DESAL Plan.
FISCAL IMPACT:
There is no direct fiscal impact to participation in the County DESAL Plan, however there will be a commitment of staff time associated with participation in meetings during the development of the plan.
12.C-3Council Agenda 4-4-2023
ALTERNATIVES:
1. Do not adopt the Resolution; provide staff with direction on how to proceed.
ATTACHMENTS:
1. Resolution
Submitted by: Meeting Date: April 4, 2023
Benjamin A. Fine, P.E.
Director of Public Work/City Engineer
City Manager Approval:
12.C-4Council Agenda 4-4-2023
RESOLUTION NO. R-2023-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH,
CALIFORNIA APPROVING PARTICIPATION IN THE COUNTY OF SAN LUIS
OBISPO DESALINATION EXECUTABLE SOLUTION AND LOGISTICS (DESAL) PLAN
WHEREAS, the City of Pismo Beach has three sources of water: Lopez Lake, the California State Water Project and the Santa Maria Groundwater Basin; and WHEREAS, these sources have been historically reliable over the past twenty years, two historical droughts have occurred, and expectations have increased that longer dry periods will occur between wetter wet periods; and
WHEREAS, Central Coast Blue remains the City’s focus, which has demonstrated that supplemental water projects take a lot of time to move from planning to design to construction; and
WHEREAS, the San Luis Obispo County Flood Control and Water Conservation District intends to develop the Desalination Executable Solution and Logistics (DESAL) Plan, a study of the feasibility of developing a desalinated water supply over the next several years; and
WHEREAS, the County of San Luis Obispo has commissioned a five-phased study to evaluate and plan for a potential desalination plant in the region; the DESAL Plan, during Phases 1 and 2, offers a no-cost, preliminary/exploratory process to incrementally evaluate a potential regional seawater desalination plant; and WHEREAS, the City has participated in the County coordinated Countywide Water Action Team (CWAT), an informal working group of staff from entities across the county with water supply planning responsibilities, to develop a conceptual five-phase approach to developing a DESAL Plan and project; and
WHEREAS, the San Luis Obispo County Flood Control and Water Conservation District will be the lead agency and contract administrator for the DESAL Plan and is requesting that water-purveying agencies that wish to be evaluated during the development of the DESAL Plan adopt resolutions approving participation; and WHEREAS, the City anticipates that Central Coast Blue can adequately address future water supply reliability, but it may be valuable to develop a better understanding of the benefits and impacts of a regional desalination project to address possible unanticipated climate change impacts; and
12.C-5Council Agenda 4-4-2023
Attachment 1
WHEREAS, there is only minimal cost to the City, in the form of staff time, associated with developing the plan, and the City can opt out at any point in the development of the plan.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby approves the inclusion of the City of Pismo Beach in the development of the DESAL Plan and wishes to be evaluated as a potential partner in such a regional desalination project in the future in order to inform decision-makers and constituents, and designates the Director of Public Works/City Engineer, or designee, to participate in the development of the DESAL Plan, and to bring forward related recommendations.
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 4th day of April 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
12.C-6Council Agenda 4-4-2023
Attachment 1