Central Coast Blue Membership and
Related Actions
Item 12.B
Jorge E. Garcia, City Manager
May 21, 2024
South San Luis Obispo
County relies on three water
sources to meet the
community’s diverse needs.
HOW IT WORKS
Lopez Lake Storage
Source: SLO County Department of Water Resources
1969 2024
Th
o
u
s
a
n
d
A
c
r
e
F
e
e
t
Groundwater
Source: Northern Cities Management Area, GSI. 2003 DWL interpolated. 1986 2023
Ac
r
e
-Fe
e
t
Seawater Intrusion
Detected - 2009
State Water Project Allocations
Source: California Department of Water Resources; 2024 is current forecast. 1967 2024
Al
l
o
c
a
t
i
o
n
2014 2015 2016
Central Coast Blue Program Timeline
SLO County
Regional
Recycled Water
Strategic Plan
Pismo Beach
Recycled
Water
Facilities
Planning
Study
SSLOCSD Recycled
Water Facilities
Planning Study
•Final EIR
•Preliminary
Engineering
•Cost Share
Agreement
•Joint Powers
Authority
•Final Design and
Permitting
Groundwater
Modeling and
Project
Planning
2017 2020 2021 2022 2024
•Significant Cost
Escalation
•Project Pause
•Partner Agency
Withdrawals
What did we learn during CCB Development?
Groundwater Basin
Modeling
Construction
design to 90%
Evaluation and
testing of filtering
technology
Creation of a Joint
Exercise of Powers
Agreement and
governance
Acquisition of
land for the
project
State and
Federal Grant
funding
GRANT FUNDING
-State-wide budget cuts
-$10M reduction in Water Recycling Grant
Temporary Change in Conditions
PROJECT COST
-Post -COVID construction cost inflation
-$85 to $112M (2022); $134 to $159M (2024)
WATER SUPPLY CONDITIONS
-Lopez Reservoir full
-Groundwater basin recovery
Actions by CCB Regional Partners
City of Grover Beach- Approved Resolution to withdraw from JPA on May 13, 2024.
City of Arroyo Grande- Approved withdrawal from JPA Cost Sharing Agreement on May 14, 2024.
Where do we go from here
•Preserve option for future project
•Pismo Beach and the entire region need to identify future water resiliency options
•Evaluate future partnership opportunities
•Reduce costs while protecting investment into the JPA
•Consideration of adding the Pismo Beach Public Financing Agency (PFA2), to the JPA
•Eliminate hired staff for JPA positions, as well as assume finance and IT services
Adding PFA2 to JPA
KEEP THE JPA OPERATIONAL
WITHOUT THE NEED TO HASTILY
FIND OTHER PARTNERS
BE STRATEGIC ABOUT FUTURE
PARTNERSHIPS AND
OPPORTUNITIES
JPA COULD BE FURTHER
AMENDED TO ADD NEW
PARTNERS
CCBRRWA Membership Changes
JPA Amendments Necessary
1.Allow for a change in composition of the members to add PFA2, while simultaneously removing Arroyo Grande and Grover Beach from the JPA.
2.Change the water purveyor contributions from the existing percentages (39% Pismo Beach, 36% Grover Beach, and 25% Arroyo Grande) to a new contribution of 100% City of Pismo Beach.
3.Modify Section 4.3, which restricts the Attorney for the Authority, who may not be counsel to one of the Member Agencies. Staff recommends that the City’s City Attorney serve as the Authority Attorney.
Next Steps
•JPA would consider the membership changes and JPA Amendment at their June 3, 2024 meeting.
•City Council may consider the final amendments at the June 18, 2024, joint City Council/Agency Meeting.
Staff Recommendation
•Staff recommends that the City Council provide direction as outlined in the Staff Report. This consistent of:
•Requesting admittance of PFA2 into the CCB JPA
•Appointing a PFA2 representative contingent upon amendment of the JPA •Amending the JPA to remove Arroyo Grande and Grover Beach and adding PFA2, modifying Authority Attorney language, and modifying water purveyor agreements
•Appointing positions to the JPA, contingent on approval of the amendment •Directing the City Manager/Executive Director to necessary steps and actions •Assume finance and IT support for the JPA
•Pursue the viability of CCB on a mid-to-long term basis