PISMO BEACH COUNCIL AGENDA REPORT

Transcription

1 PISMO BEACH COUNCIL AGENDA REPORT Agenda Item #8.E SUBJECT/TITLE: AGREEMENT FOR HYDROGEOLOGIC ANALYSIS FOR THE REGIONAL GROUNDWATER SUSTAINABILITY PROJECT (RGSP) AND REIMBURSEMENT AGREEMENT WITH THE SAN LUIS OBISPO COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT ZONE 3 RECOMMENDATION: 1. Adopt a Resolution authorizing the Mayor to execute a Reimbursement Agreement with the San Luis Obispo County Flood Control and Water Conservation District to fund a portion of the groundwater model to support the Regional Groundwater Sustainability Project (RGSP). 2. Adopt a Resolution authorizing the City Manager to enter into an agreement with GSI Water Solutions, Inc. (GSI) in the amount of $58,045 for technical advisory review for the Phase 1B Hydrogeologic Evaluation for the RGSP, and appropriating related budget adjustments. BACKGROUND: In April 2015, the City Council reviewed the City s Recycled Water Facilities Planning Study (RWFPS) and during this meeting the Council recommended moving forward with a potential recycled water project utilizing full advanced treatment with groundwater recharge with inland injection wells. The goals of this project were established as the following: Offset some potable water uses Further diversify the City s water supply portfolio Provide a new source of recharge to the groundwater basin Relieve possible future increased water demand Develop a viable recycled water project Secure outside funding and/or financing Once the RWFPS was adopted by the City Council, the City began working on a potable recycled water project. The preferred location for the advanced treatment facility (ATF) was at the City s wastewater treatment plant (WWTP) with a secondary location to be selected offsite. Working in a collaborative effort with the City's partner agencies, it became apparent that there were many advantages to pursuing one regional recycled water project using the flows from the City s WWTP as well as the South San Luis Obispo County Sanitation District (San District) WWTP. The project was redeveloped and branded as the Regional Groundwater Sustainability Project (RGSP), a collaborative project between the City of Pismo Beach and the Cities of Arroyo Grande and Grover Beach, the Oceano Community Services District (OCSD), and the San District. 8.E-1

2 There are upgrades to the San District s WWTP that need to be constructed before their effluent is of sufficient quality to be used in an advanced filtration process, so the project has been broken into two phases. Phase I will consist of an ATF, injection wells, and monitoring wells to treat and distribute the flows from the Pismo Beach WWTP only. Phase II will expand the treatment train and construct additional injection and monitoring wells (if they are needed) to be able to treat and distribute the flows from both WWTPs. It has also become apparent that because the two WWTPs share an ocean outfall line that converges at the San District s WWTP site, it is beneficial to have the preferred site for the ATF be located at or near the San District s WWTP. On June 20, 2017, Council awarded a contract to Rincon Consultants for the preparation of an Environmental Impact Report (EIR) for the RGSP. As part of their efforts, Rincon will prepare environmental studies and technical memoranda, coordination with regulatory agencies to obtain required consultation and permitting, production of environmental documentation that satisfies CEQA-Plus (expanded California Environmental Quality Act requirements for projects that utilize State Revolving Fund (SRF) funding) requirements, coordination of submittal of CEQA-Plus documentation for review, and production of environmental documentation that satisfies National Environmental Policy Act (NEPA) requirements so that Federal funding can be authorized for the project construction phase if it becomes available. The City has executed a Memorandum of Agreement with the Cities of Arroyo Grande and Grover Beach (authorized by Council August 1, 2017), as well as the San District (authorized by Council June 20, 2017) which allows for cost sharing of the EIR and related preliminary engineering. On August 1, 2017, the Council also approved Amendment #1 to the City's agreement with Water Systems Consulting (WSC) for RGSP engineering support services. Part of this amendment included the cost of Phase 1B Hydrogeologic Analysis. To fund the majority of the Phase 1B Groundwater Model, the City is entering into an agreement with the Regional Water Quality Control Board (RWQCB) to utilize funds identified in Stipulated Order No. R , Settlement Agreement and Stipulation for Entry of Administrative Civil Liability Order No. R from the San District settlement. These funds will cover $221,963 of the $281,177 required for Phase 1B Hydrogeologic Analysis and the remaining amount will be covered by a combination of Zone 3 Reserves (see below) and Prop 1 Groundwater Grant Program funds. On March 17, 2016, the County Flood Control and Water Conservation District Zone 3 Advisory Committee endorsed the FY County Budget which included a recommendation to earmark a portion of the Zone 3 District Funded Designated Reserves for specific projects and initiatives. One of the specific projects/initiatives identified was $250,000 for a Santa Maria Groundwater Basin Model. Accessing these funds requires a mid-year budget adjustment by the San Luis Obispo County Board of Supervisors (County BOS), and the execution of a Reimbursement Agreement between the County and City of Pismo Beach (Attachment 3). 8.E-2

3 On July 6th, 2017, the Zone 3 Technical Advisory Committee (TAC) recommended that $117,259 of the Zone 3 District Designated Reserves be earmarked for the Santa Maria Groundwater Basin Model be used to support the Phase 1B modeling for the RGSP. On July 20th, 2017, the Zone 3 Advisory Committee approved the Zone 3 TAC s recommendation. Final approval of the use of the Zone 3 District Designated Reserves to support the groundwater modeling effort and a reimbursement agreement between the County and the City is on the County BOS agenda for its October 17, 2017 Meeting. A key component of the planning and the design for the RGSP includes development of a groundwater model for the project area, which roughly corresponds with the Northern Cities Management Area (NCMA) and the Nipomo Mesa Management Areas (NMMA) of the Santa Maria Groundwater Basin (SMGB). As part of the RGSP, an initial groundwater model was developed (Phase 1A) to evaluate injection and extraction scenarios for flows from the City of Pismo Beach s WWTP. This model is now being expanded (Phase 1B) to include evaluation of additional flows from the San District WWTP. The Phase 1A and Phase 1B groundwater models are envisioned to be the building blocks for a larger regional (Phase 2) groundwater model that will be a comprehensive water resources management tool for the SMGB. The following graphic outlines the envisioned phased development of the NCMA/NMMA Groundwater Model. 8.E-3

4 Phase 1B Modeling The Phase 1B groundwater model includes two primary components: a) Hydrogeologic Evaluation and b) Technical Advisory Review. The Hydrogeologic Evaluation includes the development and calibration of the groundwater model and utilization of the model to evaluate injection and extraction scenarios. The Technical Advisory Review will include participation and peer review of all aspects of the groundwater model development and scenario evaluation by a third-party hydrogeology firm with extensive knowledge of local 8.E-4

5 hydrogeologic conditions. This peer review is a critical step in the development of the groundwater model to ensure the project is designed to best utilize the storage capacity and safe yield of the SMBG. Staff recommends that the Council authorize the City Manager to execute an agreement with GSI Water Solutions Inc. for this work. GSI's scope of work and fee estimates for both project components are included in Attachment 3 to this staff report. Council Action Staff recommends that the City Council adopt a Resolution authorizing the Mayor to sign a Reimbursement Agreement (Attachment 1) with the San Luis Obispo County Flood Control and Water Conservation District to fund a portion of the groundwater model to support the RGSP, and to adopt a Resolution authorizing the City Manager to enter into an agreement with GSI (Attachment 2) in the amount of $58,045 for Technical Advisory Review for the Phase 1B Hydrogeologic Evaluation for the RGSP, and appropriate related budget adjustments. FISCAL IMPACT: There is a net $0 fiscal impact to the City from staff s recommendation. The City of Pismo Beach will be the contracting agency for the Phase 1B Groundwater Model and, with Council approval, will enter into a reimbursement agreement with the District to obtain the requested Zone 3 District Designated Reserves to cover the remaining costs for Phase 1B groundwater model. Most of the Phase 1B groundwater model effort will be funded through a cooperative agreement with the Regional Water Quality Control Board (RWQCB), the San District, and the City of Pismo Beach. Included in the RWQCB s Stipulated Order No. R , Settlement Agreement and Stipulation for Entry of Administrative Civil Liability Order No. R with the San District is a provision for a Supplemental Environmental Project and allows San District to contribute $221, toward developing a groundwater basin model for the NCMA and the NMMA of the SMGB. To fund the remaining portions of the Phase 1B Model, the Zone 3 TAC is recommending utilizing $117, of the Zone 3 District Designated Reserves earmarked for the Santa Maria Groundwater Basin Modeling. The Table below outlines the costs associated with the Phase 1B Model, the proposed funding sources and the requested amount of Zone 3 Designated Reserve Funding. Phase 1B Model Contracts Phase 1B Hydrogeologic Evaluation Technical Advisory Review Estimated Costs Funding Sources SSLOCSD SEP Funds Zone 3 Reserves $281, $221, $59, $58, $58, Total $339, $117, E-5

6 ALTERNATIVES: 1. Do not authorize the City Manager to enter into Reimbursement agreement with the County; provide staff on direction on how to proceed. 2. Do not award the contract to GSI; provide staff with direction on how to proceed. ATTACHMENTS: 1. Resolution authorizing the Reimbursement Agreement 2. Resolution authorizing the agreement with GSI Water Solutions, Inc. 3. Reimbursement Agreement including GSI Scope and Cost Prepared by: Meeting Date: October 3, 2017 Benjamin A. Fine, P.E., Director of Public Works/City Engineer City Manager Approval: 8.E-6

7 Attachment 1 RESOLUTION NO. R-2017-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH AUTHORIZING THE MAYOR TO EXECUTE A REIMBURSEMENT AGREEMENT WITH THE SAN LUIS OBISPO COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT TO FUND A PORTION OF THE GROUNDWATER MODEL TO SUPPORT THE REGIONAL GROUNDWATER SUSTAINABILITY PROJECT WHEREAS, the Regional Groundwater Sustainability Project Phase 1B groundwater model includes two primary components: a) Hydrogeologic Evaluation and b) Technical Advisory Review; and WHEREAS, an initial groundwater model was developed (Phase 1A) to evaluate injection and extraction scenarios for flows from the City of Pismo Beach s Wastewater Treatment Plant (WWTP); and WHEREAS, this model is now being expanded (Phase 1B) to include evaluation of additional flows from the South San Luis Obispo County Sanitation District WWTP; and WHEREAS, to fund the remaining portions of the Phase 1B Model, the San Luis Obispo County Flood Control and Water Conservation Zone 3 Technical Advisory Committee is recommending utilizing $117, of the Zone 3 District Designated Reserves be earmarked for the Santa Maria Groundwater Basin Modeling. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the Mayor to execute a Reimbursement Agreement with the San Luis Obispo County Flood Control and Water Conservation District to fund a portion of the groundwater model to support the Regional Groundwater Sustainability Project. 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 3 rd day of October 2017, by the following vote: AYES: NOES: ABSENT: ABSTAIN: RECUSED: Approved: Ed Waage, Mayor Attest: Erica Inderlied, City Clerk 8.E-7

8 Attachment 2 RESOLUTION NO. R-2017-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH GSI WATER SOLUTIONS, INC. (GSI) IN THE AMOUNT OF $58,045 FOR TECHNICAL ADVISORY REVIEW FOR THE PHASE 1B HYDROGEOLOGIC EVALUATION FOR THE RGSP, AND APPROPRIATING RELATED BUDGET ADJUSTMENTS WHEREAS, a key component of the planning and the design for the Regional Groundwater Sustainability Project (RGSP) includes development of a groundwater model for the project area, with two primary components: a) Hydrogeologic Evaluation and b) Technical Advisory Review; and WHEREAS, the Hydrogeologic Evaluation includes the development and calibration of the groundwater model and utilization of the model to evaluate injection and extraction scenarios; and WHEREAS, the Technical Advisory Review will include participation and peer review of all aspects of the groundwater model development and scenario evaluation by a thirdparty hydrogeology firm with extensive knowledge of local hydrogeologic conditions; and WHEREAS, this peer review is a critical step in the development of the groundwater model to ensure the project is designed to best utilize the storage capacity and safe yield of the SMBG. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the City Manager to enter into an agreement with GSI Water Solutions, Inc. (GSI) in the amount of $58,045 for Technical Advisory Review for the Phase 1B Hydrogeologic Evaluation for the RGSP. BE IT FURTHER RESOLVED that the City Council of the City of Pismo Beach hereby appropriates $58,045 in revenues and expenditures in the Water Enterprise Fund RGSP account in FY 2018 to support the reimbursement from Zone 3 Reserves and the Technical Advisory Review, respectively, and appropriate related transfers between funds. 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 3 rd day of October 2017, by the following vote: AYES: NOES: ABSENT: ABSTAIN: RECUSED: 8.E-8

9 Attachment 2 Approved: Ed Waage, Mayor Attest: Erica Inderlied, City Clerk 8.E-9

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