central coast blue cost sharing moa framework

Central Coast Blue Cost Sharing MOA Framework

Arroyo Grande City Council - August 11, 2020

Presentation Overview• MOA Framework Input and Modifications • Next Steps

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MOA Framework Input and ModificationsComment/Input Section

Modified/AddedMOA Framework Modification

Framework/Term Sheet Concept

Section 1 The term “Framework” was added to clarify that thisdocument is intended as framework document for aMOA not the actual MOA. Additional language wasadded to describe that the MOA Framework is notlegally binding, but the basis for developing the MOA.

Editorial Corrections

Section 2.f Minor editorial corrections made to correctly identifyfunding agencies for previously complete studies

SSLOCSD Contributions

Sections3.e.iii and8.c.ii

Modified language to reflect current negotiation statuswith SSLOCSD regarding Construction cost sharing.

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Governance Structure

Section 4.a.v Additional opt-out clause related to developing amutually agreeable governance/ownership structure

Opt-out provisions Sections 4.band 4.c

Additional clarification language regarding costobligations if an agency utilizes an opt-out clause

Over-pumping Restrictions

Section 7.a Addition of a penalty charge for over pumping, exceptduring emergency conditions

Unsubscribed Water Purveyor

Contribution Percentage

Section 8.a.ii Additional clarification regarding what happens ifanother agency is not identified for the Unsubscribed5% Water Purveyor Contribution Percentage

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Pre-Construction Cost Share

Reimbursement

Section 8.b.i Modification to starting point for the Pre-ConstructionCost Share Reimbursement to the first contract based onthe current vision for the project

Land Purchase Costs

Section 8.b.i Removal of land purchase costs from the Pre-Construction Cost Sharing to avoid issues regardingshared property ownership

Contract/Change Order Approval Requirements

Section8.b.iv.1

Modifications to provide specificity regarding contractapproval authority and cost control for eachContributing Water Purveyor

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SSLOCSD Pre-Construction Contributions

Section 8.b.v Modifications to clarify distribution of SSLOCSD pre-construction contribution credits to its Contributing WaterPurveyor Member Agencies

Initiation of Construction Cost

Accounting

Section 8.c.i Clarification regarding starting point of ConstructionCost accounting and cost sharing

Buy-In Costs Section 8.f.i Modification to “buy-in” cost calculations

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Prepare formal MOA for review and approval by the Cities of Arroyo Grande, Grover Beach and Pismo Beach

Develop Cost Share Agreements between Pismo and Arroyo Grande/Grover Beach to fund the next phase (Permitting and Final Design) to advance critical project components to position Central Coast Blue for grant and low interest financing to reduce project costs.

Update of the 2002 Management Agreement and governance/ownership structure for the Central Coast Blue for incorporation into the MOA

Continue negotiation with SSLOCSD regarding potential participation in the cost sharing for Central Coast Blue

Next Steps

FINANCIAL INFORMATION

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Modified Cost Share based on Water Demand

• 5% currently unsubscribed• Unsubscribed percentage to be shared

evenly until:• Additional project partners are

identified;• Or cost share percentages are re-

adjusted

Updated Cost Share PercentagesContributing Water Purveyors

Original Cost Share Percentage

Update Cost Share Percentage

Temporary Adjusted

Cost Share Percentage

Arroyo Grande39% 39% 40.67%

Grover Beach41% 36% 37.67%

Pismo Beach 20% 20% 21.67%

Unsubscribed5%

Total100% 100% 100%

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Pismo Beach led initial project efforts

• Anticipated Arroyo Grande and Grover Beach will contribute higher percentages until contributions match cost share percentages

• 50% Arroyo Grande; 50% Grover Beach, if funding is available

Reconciliation of Costs Spent To Date

City

Adjusted Cost Allocation

Preconstruction Costs

Contribution to Date

Contribution Remaining

GroverBeach 37.67% $816,887 $110,000 $706,887

ArroyoGrande 40.67% $881,948 $144,811 $737,137

PismoBeach 21.67% $469,890 $1,913,914 $(1,444,024)

TOTAL100% $2,168,725 $2,168,725

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Pre-Construction Tasks

• RWQCB & DDW Permitting• Final Design• Funding & Financing Support

• Prop 1 GWGP• Title XVI• CWSRF

• Program Management

Anticipated Remaining Pre-Construction Costs

1Includes usage of $800k in previously awarded Title XVI Grant to reduce costs in FY 2020/212Contributions may be higher to equalize cost spent to date w/ cost share percentages

Fiscal Year

City 2020-211 2021-22 2022-23 2023-24

GroverBeach2 $730,000 $720,000 $80,000 $80,000

ArroyoGrande2 $670,000 $670,000 $80,000 $80,000

PismoBeach

$390,000 $390,000 $40,000 $40,000

TOTAL $1,790,000 $1,780,000 $200,000 $200,000

FUNDING/FINANCING UPDATE

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Prop 1 Groundwater Grant Program • Round 1 Planning Grant (awarded $2M)

• Aerial Geophysics survey • Test Injection Design

• Round 3 Implementation Funding (50% of Capital Costs)

• Applications in Winter 2020/21• Cost Sharing Agreements, Permitting and

CEQA tasks critical to position for funding

Funding/Financing Update

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• USBR Title 16 Grant Funding (25% of total Project Costs)

• Project Award $800k • 2020 FY FOA anticipated in Summer 2020, if

released• Potent Infrastructure Stimulus Bill

• State Revolving Funding (Low Interest Financing)

• Targeting Certified EIR and complete application package by end of 2020

Funding/Financing Update

Program Schedule

Certified EIR &

CWSRF Application

Round 3 Prop 1 GWGP

Application

FY 2021 Title XVI

FOA

• Approximately 1.5 acres unpaved storage yard

• Located at southern end of Huber and Barca St.

• APN 060-543-016

Offsite ATF Location

Offsite ATF Location

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Environmental Impact Report

Jan Feb

Q1Mar Apr May

Q2Jun Jul Aug

Q3Sep Oct Now

Q4Dec

2020 2021Jan

Notice of Preparation

Admin Draft Public DraftFinal EIR, NOD &

MMRP

Public Hearings

Public Scoping Meeting

Updated EIR Transition

Planning Commission & City Council Meetings

Critical Milestone

for funding

central coast blue cost sharing moa framework

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