AVILA BEACH COMMUNITY SERVICES DISTRICT Post Office Box 309, Avila Beach, CA. 93424 Meeting Room and Office - 100 San Luis Street, Avila Beach Telephone (805) 595-2664 FAX (805) 595-7623 e-mail: avilacsd@gmail.com BOARD MEETING 1 PM Tuesday, May 13th, 9 2025 STAFF AND PUBLIC MAY PARTICIPATE IN THIS MEETING IN PERSON AT THE ADDRESS ABOVE OR, VIA TELECONFERENCE AND/OR ELECTRONICALL. ZOOM MEETING: htps./us0/web.zoom.s411787571 Meeting ID: 411 178 7571 Password: No Password Required. BY PHONE: 1-669-900-9128 Director Najarian will be attending the meeting via Zoom from: 1441 Florida Ave, Modesto, CA In accordance with Government Code Section 54953(b), this agenda will be posted at the above teleconference location, and this location will be accessible to the public. 1. CALL TO ORDER: 1:00 P.M. 2. ROLL CALL: Board Members: Pete Kelley, President John Janowicz, Vice President Kristin Berry, Director Howie Kennett, Director Ara Najarian, Director 3. PUBLIC COMMENT Members of the public wishing to comment on or bring forward any items concerning District operations which do not appear on today's agenda may address the Board now. Please state your name and address before addressing the Board and limit presentations to 3 minutes. State law does not allow Board action on items not appearing on the agenda. 4. INFORMATION AND DISCUSSION ITEMS County Reports 1. SLO County Sheriff Department 2. CalFire/County Fire Department Reports on Attended Conferences, Meetings, and General Communications of District Interest 5. PUBLIC COMMENT ON CLOSED SESSION ITEM 6. CLOSED SESSION A. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2). Number of cases: One. REPORT ON CLOSED SESSION/ANNOUNCEMENT OF ACTION, IF ANY, TAKEN IN CLOSED SESSION 7. CONSENT ITEMS: These items are approved with one motion. Directors may briefly discuss any item, or may pull any item, which is then added to the business agenda. A. Minutes of April 8th, 2025, Regular Board Meeting B. Monthly Financial Review for March 2025 C. General Manager and District Engineer Report D. Water and Wastewater Operations Reports for March and April 2025 8. DISCUSSION OF PULLED CONSENT ITEMS At this time, items pulled for discussion from the Consent Agenda, if any, will be heard. 9. BUSINESS ITEMS: Items where Board action is called for. A. PUBLIC HEARING: Consider Adoption of Fiscal Year 2025/26 Budget (Action Required: Receive Report, Open Public Hearing; Consider Adoption ofResolution No. 2025- 03 Appropriations Limitations and Resolution No. 2025-04 Adopting a Final Fiscal Year 2025/26 Budget) B. District General Counsel Contract Review (Action Required: Receive Report, Consider rate increase.) C. Consider Awarding a Professional Services Contract for Installation of Water Meters (Action Required: Receive Report, Direct staff to Execute a Professional Services Contract or Provide Other Direction to Staff) D. Avila Valley Regional Wastewater Alternative Executive Summary Review (Action Required: Review Summary, Consider Creating an Ad Hoc Subcommittee, or Provide Other Direction to Staff) 10. COMMUNICATIONS CORRESPONDENCE At this time, any Director, or Staff, may ask questions for clarification, make any announcements, or report briefly on any activities or suggest items for future agendas. ADJOURN The Regular Board meeting has been canceled on June 10, 2025. The next Special Meeting is scheduled for Tuesday, June 24th, 2025, at 1:00 P.M. Any writing or document pertaining to an open session item on this agenda which is distributed to most of the Board after the posting of this agenda will be available for public inspection at thet time the subject writing or document is distributed. The writing or document will be available for public review in the District Administration Office, 100 San Luis Street, Avila Beach, CA during normal business hours. Consistent with the Americans with Disabilities Act and California Government Code Section 54954.2 requests for disability related modification or accommodation, including auxiliary aids or services may be made by aj person with a disability who requires the modification or accommodation in order toj participate at the above referenced public meeting by contacting the District at 805-595-2664. Item: 7.A. MINUTES OF SPECIAL BOARD OF DIRECTORS MEETING Avila Beach Community Services District Tuesday, April 8th, 2025 1:00 P.M. 1. CALLTO ORDER President Kelley called the special meeting of the Board of Directors of the Avila Beach Community Services District, to order at 1:01 P.M. on the above date, in the Avila Beach Community Services District Building, 100 San Luis Street, Avila Beach, California. 2. ROLLCALL Board Members Present Pete Kelley Howie Kennett John Janowicz Kristin Berry Ara Najarian Board Members Present via Zoom: None Board Members Absent: None Staff] Present: Brad Hagemann, General Manager Kristi Dibbern, Office Manager Operations: Shawn Powell, Chief Plant Operator Legal Counsel via Zoom: Craig Parton from Price, Postal, & Parma 3. PUBLIC COMMENTS - None 4. INFORMATION, AND DISCUSSION ITEMS A. County Reports Sheriff's Report: Sheriff. Abbas reported 86 calls for service during the month of March. Deputies conducted six preventive patrol stops, investigated five general disturbances & seven burglaries. Sheriff Abbas mentioned the Bob Jones Trailhead parking lot is a target for theft. He reminded the Board & public to please lock your vehicles and "hide" valuables in the trunk if you are not keeping them on your person as you hike the Bob Jones Trail. Cal Fire: Chief Paul Lee reported 48 calls for service this month, 29 were medically related. An unfortunate accident occurred on Avila Beach Drive involving a motorcycle going off the edge near the Cal Poly Pier and crashing into the rocks. Chief Lee believes the victim should make a full recovery. The Fire Safe Council will be awarding its grant money soon. These funds make it possible for Cal Fire to clear vegetation and build fire breaks in our area. Chief Lee announced that Captain Nicoli Mackiewicz has joined Station 62 in Avila Beach. 5. PUBLIC COMMENT ON CLOSED SESSION ITEM GM Hagemann announced that the Local California Special Districts Association San Luis Obispo chapter is holding its quarterly meeting at McPhee's s in Templeton on April 24th from 11:30 AM - 1:30 PM if anyone is interested in attending, please let Kristi know. Pre-registration is required to attend. 6. CLOSED SESSION The Board convened to closed session at 1:15 PM to discuss the following items: A. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Item: 7.A. Significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2). Number of cases: One. REPORT ON CLOSED SESSION/ANNOUNCEMENT OF ACTION, IF ANY, TAKEN IN CLOSED SESSION The Board returned to regular session at 1:46 PM. No reportable action was taken by the Board of Directors during the closed session. 7. CONSENT ITEMS: After Board discussion and no public comment, Director Janowicz made a motion to approve the Consent Items. Director Berry seconded the motion and the motion passed with a roll call vote 5-0. AYES: John Janowicz Kristin Berry Howie Kennett Ara Najarian Pete Kelley NOES: None ABSENT: None 8. PULLED CONSENT ITEMS. None. 9. BUSINESS ITEMS: A. Weed Abatement Program. Consider adoption of Resolution No. 2025-02 declaring weeds a nuisance and provide for abatement by June 24th, 2025. Each year the District coordinates an Annual Weed Abatement Program in the community to ensure that weeds, dry grass and trash are cleaned up and do not pose a fire hazard. Cal Fire will perform an inspection in mid-June for compliance. Property owners will have until June 24", 2025, to comply with the posting. Director Najarian made a motion to adopt Resolution No. 2025-02 declaring weeds a nuisançe. Vice President Janowicz seconded the motion, and it passed with a roll call vote 5-0. AYES: Ara Najarian John Janowicz Howie Kennett Kristin Berry Pete Kelley NOES: None ABSENT: None B. Presentation and Review of the Preliminary FY 2025/26 Budget. This was an informational only item. GM Hagemann summarized the preliminary budget staff report with a Power Point presentation. The Board directed staff to prepare the final draft of the budget consistent with the preliminary draft and to schedule the Budget Public Hearing for May 13th, 2025, at 1:00 PM with no rate increase for water and sewer customers. Item: 7.A. C. Consider Awarding a Contract to GSE Construction, Inc., for repairs and coating of the WWTP primary clarifier trough (launder). GM Hagemann summarized the Staff Report. Recently, staff noted that the clarifier trough coating has deteriorated and needs to be re-coated. Staff requested quotes from three contractors and only one contractor (GSE Inc.) responded. GSE Construction is a relatively large firm that is working on a WWTP project at Cal Poly. Director Najarian made a motion to approve the bid from GSE, Inc. Vice President Janowicz seconded the motion, and it passed with a roll call vote 5-0. AYES: Ara Najarian John Janowicz Kristin Berry Howie Kennett Pete Kelley NOES: None ABSENT: None Staff reminded the Board that The NEXT MEETING will be held on Tuesday, May 13th, 2025, at 1:00PM. ADJOURNMENT: The meeting was adjourned at approximately 2:45 PM. These minutes are not official nor a permanent part of the records until approved by the Board of Directors at their next meeting. Respectfully submitted, Brad Hagemann, PE General Manager AVILA BEACH COMMUNITY SERVICES DISTRICT Post Office Box 309, Avila Beach, CA 93424 MEMORANDUM TO: Board of Directors FROM: Brad General Bu4 Hagemann, Managér DATE: May 13th, 2025 ITEM: 7.B Monthly Financial Review for March Recommendation: Receive and file report. Overall Monthly Summary During the month of March, the District deposited $106,252.99 and incurred $73,186.75 in expenses (cash basis). Water and sewer revenue for the month of March totaled $65,130,97 and the District received $35,648.02 in county tax revenue. Detailed financial reports including Balance Sheets, Profit and Loss, and Checks by Fund are provided for your information for March. Utility Service Billing The District billed approximately $64,347.86 in water and sewer service charges in March. Customer Rate Assistance reduced billing charges to the District in the amount of$708.11. April's financials were not available at the time of Board Packet production. They will posted to the website and available at the Board meeting on April 13th, 2025. 3:22 PM Avila Beach Community Services District 04/10/25 Balance Sheet Accrual Basis As of March 31, 2025 Mar 31, 25 ASSETS Current Assets Checking/Savings 1000 - Cash Summary 1005 . Customer Cash 140.35 1008 . Petty Cash 65.72 1010 . Pacific Premier Checking 147,082.77 1015 - Five Star Bank Checking 1,044,378.90 1017 . Five Star Bank MM 214,175.29 1050 - LAIF 4,251,615.25 Total 1000 . Cash Summary 5,657,458.28 Total Checking/Savings 5,657,458.28 Accounts Receivable 1200 . *Accounts Receivable 159,407.64 Total Accounts Receivable 159,407.64 Other Current Assets 1250 - Receivables 1255 . Interest Receivable 31,062.36 1270 . Taxes Receivable 30,262.00 1280 . Water & Sewer Billings 1281 . Other 1 El Dorado Billings -4,154.42 1282 - Other 2 El Dorado Billings -19,861.05 1280 . Water & Sewer Billings - Other 112,568.89 Total 1280 - Water & Sewer Billings 88,553.42 Total 1250 . Receivables 149,877.78 1400 . Prepaid Summary 1410 . Prepaid Insurance -14,694.94 Total 1400 . Prepaid Summary -14,694.94 Total Other Current Assets 135,182.84 Total Current Assets 5,952,048.76 Fixed Assets 1670 - Vehicles - Admin 1671 . 2023 Ford F150 Cost 53,960.62 1672 . 2023 Ford F150 Acc Depr -10,792.12 1670 . Vehicles - Admin - Other 286.40 Total 1670 . Vehicles - Admin 43,454.90 1600 . Fixed Assets & Acc. Depr. 1605 - Office Equipment 1606 - Copier Samsung 2012 8,233.58 Page 1 3:22 PM Avila Beach Community Services District 04/10/25 Balance Sheet Accrual Basis As of March 31, 2025 Mar 31, 25 1609 . Office Equipment Accum Depr -22,339.42 Total 1605 . Office Equipment -14,105.84 1610 . Fixed Asset -Office & Admin. 1612 . Office Furniture cost 4,526.21 1614 . Office Furniture Accum Dep. -4,526.21 Total 1610 . Fixed Asset -Office & Admin. 0.00 1620 - Fixed Assets - Sanitary 1622 . Land 60,314.10 1626 . Collection Assets 1627 . Collection Assets Cost 1,517,267.58 1628 . Collect Assets Accum Depr -593,752.02 Total 1626 . Collection Assets 923,515.56 1630 . Disposal Equipment 1631 : Disposal Equip Cost 611,174.66 1632 . Disposal Equip Accum Depr -376,478.88 Total 1630 . Disposal Equipment 234,695.78 1634 . Other Equipment 1634a . Other Equipment Cost 6,973.40 Total 1634 . Other Equipment 6,973.40 1635 . Treatment Plant 1636 . Treatment Plant Original 105,000.00 1637 . Treatment Plant Addition 2,049,098.30 1638 - Treatment Plant Accum Dep 1,740,709.80 Total 1635 . Treatment Plant 413,388.50 1642 . Treatment Equipment 1643 . Treatment Equip Cost 1,087,410.54 1644 . Treatment Equip Accum Depr -787,343.49 1642 . Treatment Equipment - Other 205,486.61 Total 1642 . Treatment Equipment 505,553.66 Total 1620 - Fixed Assets - Sanitary 2,144,441.00 1650 . Fixed Assets - Water 1652 . Equipment 1653 . Equipment Cost 21,136.28 1654 . Equipment Accum Depr -21,136.28 Total 1652 - Equipment 0.00 1656 . Distribuation Assets 1657 . Distribuation Assets Cost 1,270,572.25 Page 2 3:22 PM Avila Beach Community Services District 04/10/25 Balance Sheet Accrual Basis As of March 31, 2025 Mar 31, 25 1658 . Dist Assets Accum Depr 786,988.91 Total 1656 . Distribuation Assets 483,583.34 Total 1650 . Fixed Assets - Water 483,583.34 1680 . Structures - Fixed Asset 1681 . Structures GFAAG - Sani & FA 82,207.29 1682 . Gen / Fire Accum Dep -54,626.21 Total 1680 . Structures - Fixed Asset 27,581.08 1690 . Construction in Progress 4,475,390.83 Total 1600 - Fixed Assets & Acc. Depr. 7,116,890.41 Total Fixed Assets 7,160,345.31 Other Assets 1800 - Deferred Outflows of Resources 82,628.00 1900 . Due To / Due From General -318,131.76 Total Other Assets -235,503.76 TOTAL ASSETS 12,876,890.31 LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable 2100 . Accounts Payable 193,478.86 Total Accounts Payable 193,478.86 Credit Cards 2140 - Five Star MC Control x0557 2141 . FS MC BH x8624 70,616.71 2142 . FS o C SP x6340 30,881.60 2143 . FS MC KD x3018 6,076.76 2140 . Five Star MC Control x0557 - Other -105,306.24 Total 2140 . Five Star MC Control x0557 2,268.83 Total Credit Cards 2,268.83 Other Current Liabilities 2105 . Accrued Expense 193,478.86 2200 . Payroll Liabilities 2201 . Accrued Payroll 2,766.15 2240 . Health Insurance 2241 . Employee 12,600.00 Total 2240 . Health Insurance 12,600.00 2250 . PERS Liability 1,217.68 Page 3 3:22 PM Avila Beach Community Services District 04/10/25 Balance Sheet Accrual Basis As of March 31, 2025 Mar 31, 25 2255 . Accrued Interest FB Auditor 68,735.52 2260 . Vacation Payable 5,441.96 2262 . Sick Pay Accrued 2,818.66 Total 2200 - Payroll Liabilities 93,579.97 2300 . Deposits Held 2303 . Water Deposits Held 7,640.00 Total 2300 . Deposits Held 7,640.00 Total Other Current Liabilities 294,698.83 Total Current Liabilities 490,446.52 Long Term Liabilities 2400 - Net Pension Liability 149,160.00 2450 - U.S. Bank Loan WWTP 2,497,679.03 2500 . Deferred Inflows of Resources 22,819.00 2999 . Unbalanced Classes 60,023.34 Total Long Term Liabilities 2,729,681.37 Total Liabilities 3,220,127.89 Equity 3000 . Opening Bal Equity -17,611.15 3900 . Retained Earnings 7,620,312.04 3999 . Prior Period Adjustment FY 23 1,626,964.23 Net Income 427,097.30 Total Equity 9,656,762.42 TOTAL LIABILITIES & EQUITY 12,876,890.31 Page 4 3:17 PM Avila Beach Community Services District 04/10/25 Profit & Loss Accrual Basis March 2025 Mar 25 Ordinary Income/Expense Income 4000 . Income Summary 4010 . Operating Revenue 65,130.97 4012 . Solid Waste Franchise Fee 3,455.10 4020 . Contract Services-Ambulance 1,231.25 4030 . County Taxes 35,648.02 4600 . Interest Income 787.65 Total 4000 . Income Summary 106,252.99 Total Income 106,252.99 Gross Profit 106,252.99 Expense 5100 . Merchant Credit Card Fees 5110 . Amex 46.80 5120 . Chase Paymentech 142.49 5140 - Invoice Cloud 367.88 Total 5100 . Merchant Credit Card Fees 557.17 5200 . Payroll Expenses 5210 - Gross Wages 5211 . Regular Pay 14,067.24 5213 - Overtime Pay 49.61 5214 . Sick Pay 793.68 5216 . Vacation Pay 340.04 Total 5210 . Gross Wages 15,250.57 5230 - Payroll Taxes 220.09 5240 . Health & Medical Exp. 5242 . Health Ins / Other 7,321.60 Total 5240 . Health & Medical Exp. 7,321.60 5250 . PERS Company Pd Expense 5255 . PERS Co Pd Shawn 831.67 5256 . PERS Co Pd Kristi 350.25 5250 . PERS Company Pd Expense - Ot... 22.16 Total 5250 . PERS Company Pd Expense 1,204.08 5280 - Payroll Administration & Misc. 130.28 Total 5200 . Payroll Expenses 24,126.62 Page 1 3:17 PM Avila Beach Community Services District 04/10/25 Profit & Loss Accrual Basis March 2025 Mar 25 6000 . Administrative Overheads 6102 . Accounting 3,997.50 6120 . Dues & Subscriptions 197.98 6135 . Legal 6137 - Lopez Lake ESA Litigation 6,117.50 6135 . Legal - Other 805.00 Total 6135 . Legal 6,922.50 6140 - Office Supplies & Postage 6142 - Postage & Shipping 18.55 6143 . Supplies, Office 233.56 Total 6140 . Office Supplies & Postage 252.11 6145 . Public Notices 309.63 6150 . Rate Assistance 708.11 6167 . Uniforms 180.00 6170 . Website 249.00 Total 6000 . Administrative Overheads 12,816.83 6500 . Operating Expenses 6503 . Chemicals 1,462.78 6504 . Admin Contract Services 1,102.50 6506 . Contract Labor GM 4,640.00 6507 . Contract Labor Civil Engineer 3,200.00 6518 . Equipment Expense 215.71 6520 . Equipment Repair & Maint. 6522 . Equip. Rep. & Maint-Avila & HD 5,614.68 6524 . Eqip. Rep. & Maint. Avila Only 225.00 6520 - Equipment Repair & Maint. - Other 98.91 Total 6520 . Equipment Repair & Maint. 5,938.59 6528 . Gas & Oil 408.08 6530 . Generator Maintenance 2,543.37 6535 . Insurance PIL 2,869.46 6540 . Lab Tests 2,103.00 6542 . Maintenance 403.00 6550 - Operating Supplies 348.28 6570 . Safety Gear 67.00 6572 . Security 363.10 6580 . Solids Handling 1,971.00 6585 - Telephone / Internet 259.98 6590 . Utilities 7,743.03 6591 - Yard Maintenance 47.25 Page 2 3:17 PM Avila Beach Community Services District 04/10/25 Profit & Loss Accrual Basis March 2025 Mar 25 Total 6500 . Operating Expenses 35,686.13 Total Expense 73,186.75 Net Ordinary Income 33,066.24 Other Income/Expense Other Expense 9990 . Refund 422.35 8200 - Non-Operating Expenses 8270 . Capital Purchases in Prog Water 8274 . Water Meter Replacement Project 2,000.47 Total 8270 . Capital Purchases in Prog Wat... 2,000.47 Total 8200 . Non-Operating Expenses 2,000.47 Total Other Expense 2,422.82 Net Other Income -2,422.82 Net Income 30,643.42 Page 3 AVILA BEACH COMMUNITY SERVICES DISTRICT Post Office Box 309, Avila Beach, CA. 93424 MEMORANDUM TO: Board of Directors FROM: Brad 7R Hagemann, General Manager DATE: May 13, 2025 Item 7.C.: General Manager Report Zone 3 Technical Advisory Committee (TAC) and Advisory Committee The Zone 3 Technical Advisory Committee is scheduled to next meet on May 14th. The agenda packet for the May 14th meeting is not yet available. As of this writing (May 7, 2025), the Lopez reservoir is at 93% of capacity with 45,860 AF in storage. Rainfall accumulation at the lake since July 1, 2024, is 15.1 inches, which is 74% of the average for this time ofyear. The Zone 3 Advisory Committee is scheduled to meet on May 15, 2025. The agenda for the Advisory Committee was not available at the time this report was prepared. State Water Project 2025 Allocation Increase - On April 29, 2025 the Department of Water Resources announced that they were increasing the State Water Table A allocation from 40 percent to 50 percent. This provides an allocation for San Luis Obispo County Flood Control District and the State Water Subcontractors of up to 12,500 AF ofState Water. The Memo is provided as an attachment to this staff report. State Water Subcontractors Advisory Committee Meeting - The Advisory Committee is scheduled to meet on May 9, 2025. The agenda packet for the May gth meeting is provided as an attachment to this report. The primary issue for the Committee is to provide advice to the Board of Supervisors regarding the proposed water transfer policy update. Status Report on the bacteria exceedance that caused the Boil Water Order First, I would like to thank Kristi and Shawn for working extra hours during the week and on the weekend to ensure the Boil Notice Order was sent to our customers, as well as, the Boil Notice Cancellation that was sent out on Saturday afternoon. County staff, in coordination with the State Division of Drinking Water (DDW) are investigating to try to determine the source of the bacteria in the Lopez water line. It is interesting that all the City and District sampling came up "clean" (no bacteria detection), yet the County line had "hits" on two consecutive days (which is what triggered the Boil Water Order). The County is required to submit a formal report the DDW within 30 days summarizing their findings and conclusions. Operations staff have modified our daily and monthly drinking water sampling program to ensure that we have representative and more frequent chlorine residual samples throughout the District's water distribution system. Docusign Envelope ID: ECF3AT60A92-251-8E281-8E253EID828D97EF State of California DEPARTMENT OF WATER RESOURCES California Natural Resources Agency CALIFORNIA STATE WATER PROJECT NOTICE TO STATE WATER PROJECT CONTRACTORS A à OF CAVES Date: April 29, 2025 Number: 25-05 Subject: Increase of State Water Project 2025 Allocation to 50 Percent DAYY4 From: John Yarbrough Deputy Director, State Water Project Department of Water Resources Moderate storm events of the last month led to improvements in snowpack and water supply runoff in the Northern Sierra. These conditions, along with a conservative forecast of conditions through the rest of the year, support the Department of Water Resources (DWR) in increasing the State Water Project (SWP) allocation from 40 percent to 50 percent of most State Water Project (SWP) contractors' requested Maximum Annual Table A Amounts for 2025, as shown in Attachment A = 2025 SWP Allocation. DWR may revise the SWP allocation if water supply conditions change. To determine the available SWP water supplies, DWR considers such factors as SWP contractors' 2025 demands, existing storage in SWP conservation facilities, estimates of future runoff, SWP operational and regulatory requirements from the Federal Endangered Species Act and California Endangered Species Act, and water rights obligations under the State Water Resources Control Board's authority. To schedule SWP water deliveries under this allocation, DWR will utilize the 50-percent water delivery schedules submitted by the SWP contractors in October 2024 (as part of initial requests) or as revised with any subsequent updates. If an SWP contractor foresees any changes to their water delivery schedule, please communicate such changes to DWR in a timely manner. If you have any questions or need additional information, please contact me at John. Yatbougheatercasow Attachment A: 2025 State Water Project Allocation, updated April 29, 2025 DWR 9625 (Rev. 3/12) Page 1 of 1 Docusign Envelope D: ECF3A760A242818E28:8E253E1D82SD9TEF Attachment A 2025 STATE WATER PROJECT ALLOCATION Updated April 29, 2025 Maximum Annual Approved Table A Approved Table A Amount Allocation Allocation as a (Acre-Feet) (Acre-Feet) Percentage of SWP Contractors Maximum Annual Table A. Amount (1) (2) (3) = (2)/(1) FEATHER RIVER County of Butte 27,500 22,000 80% Plumas County FC&WCD 2,700 1,350 50% City of Yuba City 9,600 6,720 70% Subtotal 39,800 30,070 NORTH BAY Napa County FC&WCD 29,025 20,318 70% Solano County WA 47,756 33,430 70% Subtotal 76,781 53,748 SOUTH BAY Alameda County FC&WCD, Zone 7 80,619 40,310 50% Alameda County WD 42,000 21,000 50% Santa Clara Valley WD 100,000 50,000 50% Subtotal 222,619 111,310 SAN JOAQUIN VALLEY Oak Flat WD 5,700 2,850 50% County of Kings 9,305 4,653 50% Dudley Ridge WD 41,350 20,675 50% Empire West Side ID 3,617 1,809 50% Kern County WA 982,730 491,365 50% Tulare Lake Basin WSD 86,854 43,427 50% Subtotal 1,129,556 564,779 CENTRAL COASTAL San Luis Obispo County FC&WCD 25,000 12,500 50% Santa Barbara County FC&WCD 45,486 22,743 50% Subtotal 70,486 35,243 SOUTHERN CALIFORNIA Antelope Valley-East Kern WA 144,844 72,422 50% Santa Clarita Valley WA 95,200 47,600 50% Coachella Valley WD 138,350 69,175 50% Crestline-Lake Arrowhead WA 5,800 2,900 50% Desert WA 55,750 27,875 50% Littlerock Creek ID 2,300 1,150 50% Metropolitan WDSC 1,911,500 955,750 50% Mojave WA 89,800 44,900 50% Palmdale WD 21,300 10,650 50% San Bernardino Valley MWD 102,600 51,300 50% San Gabriel Valley MWD 28,800 14,400 50% San Gorgonio Pass WA 17,300 8,650 50% Ventura County WPD 20,000 10,000 50% Subtotal 2,633,544 1,316,772 TOTAL 4,172,786 2,111,922 -50% SWSAC MEMBER. AGENCIES: SLOCFC&WCD, CSA 16 (SHANDON), CMC, COUNTY OPS CENTER, CUESTA COLLEGE, CITY OF MORRO BAY, CITY OF PISMO BEACH, OCEANO CSD, AVILA VALLEYMWG, AVILA BEACH CSD, SAN MIGUELITO MWC, SAN LUIS COASTAL USD ATROL ND Notice of Meeting STATE WATER SUBCONTRACTORS ADVISORY COMMITTEE SAN LUIS OBISPO COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT County Gov/t. Center, Rm. D361 - 1055 Monterey Street, San Luis Obispo, CA 93408 Friday, May 9, 2025 - 10:00 - 11:30 AM For agenda packet attachments and more information: https/www.slocounty/cagov/Departments/Publice MasuCoaREgENSuhassedm.ds,asN Chair: Brad Hagemann (Avila Beach CSD) Vice Chair: Courtney Howard (District) AGENDA 1. CALL TO ORDER - Roll Call & Quorum Count 2. PUBLIC COMMENT - For matters not on the agenda, within the Committee's jurisdiction. Limited to 3 minutes each. 3. MEETING MINUTES Staff Recommendation: Approve the Minutes from Feb. 2025 (Regular) & Mar. 2025 (Special) meetings. 4. PROPOSED 2025 CALENDAR UPDATE Staff Recommendation: Approve the Proposed 2025 SWSAC Calendar Update. 5. REPORTS FROM THE DISTRICT A. Water Supply & Delivery Operations Staff Recommendation: Informational Item Only. B. DCP Planning Update Staff Recommendation: Informational Item Only. C. Water Management Working Group Update Staff Recommendation: Informational Item Only. D. Potential 2025 Water Transfer Staff Recommendation: Informational Item Only. 6. DISCUSSION: PROPOSED SWP WATER TRANSFER POLICY UPDATE (ACTION ITEM) Staff Recommendation: Recommend that the District staff present the proposed draft. SWP Transfer Policy to the District Board for consideration, with the understanding that Subcontractors may continue to provide comments or suggest refinements prior to or during the Board's adoption process. 7. REPORTS FROM SUBCONTRACTORS (FOR INFORMATION ONLY) 8. FUTURE AGENDA ITEMS 9. DATE OF NEXT MEETING (Friday, Aug. 8, 10:00-11:30a) 10. ADJOURNMENT Attachments 1. Agenda Item 3 - Draft Minutes, Feb./Mar. 2025 (handout) 2. Agenda Item 4 - Proposed 2025 Calendar (5/9/25) 3. Agenda Item 6 - Policy References CONTACT: Please contact SWSAC Secretary, Wes Thomson, with any questions: wthomsonecosiocaus or (805) 781-5252. All Americans with Disabilities Act (ADA) accommodations shall be promptly reviewed and resolved. SAN LUIS OBISPO COUNTY FLOOD CONTROL & WATER CONSERVATION DISTRICT STATE WATER SUBCONTRACTORS ADVISORY COMMITTEE INITIAL 2025 CALENDAR APPROVED 12/6/2024. (PROPOSED REVISIONS 5/9/25) 2025 SWSAC CALENDAR State Water Subcontractors Advisory Committee (SWSAC) & Water Management Working Group (WMG) SWSAC (Public Meetings): Dates as shown, from 10:00-11:30 AM - quarterly meetings in San Luis Obispo, downtown at the dyCounylibragyComterence-comcoauny Government Center (Rm. D361) (unless noticed otherwise). WMG (District & Subcontractor Staff): Technical review/coordination as needed; dates/times TBD. JAN FEB MAR SWSAC - Dark Regular SWSAC - Feb 7 (Fri.) SWSAC = Dark Special SWSAC - Mar 7 (Fri.) (1), Annual election of Chair & Vice Chair; (2). Approval of 2025 Calendar. APR MAY JUN SWSAC - Dark Regular SWSAC - May 9 (Fri.) SWSAC - Dark JUL AUG SEP SWSAC - Dark Regular SWSAC - Aug (Fri.) SWSAC - Dark Subcontractors submit SWP water delivery request for 2026 (on or before 9/1/25). OCT NOV DEC SWSAC - Dark Regular SWSAC - Nov (Fri.) SWSAC - Dark District submits SWP water (1) DWR issues Initial SWP delivery request for 2026 to Allocation for 2026 (on or before DWR (on or before 10/1/25). 12/1/25); (2) District furnishes 2026 delivery schedule to Subcontractors (on or before 12/75/25); (3) Distribution of draft proposed calendar for 2026. *Meeting logistics are subject to change. Please contact County Public Works at 805-781-5252 or pwd@coslo.ca.usfor confirmation of date, location & time. TO: State Water Subcontractors Advisory Committee FROM: Wes Thomson, Supervising Engineer, Water Utilities DATE: May 9, 2025 SUBJECT: Item 6: PROPOSED SWP WATER TRANSFER POLICY UPDATE (PRIORITIES & CRITERIA) Staff Recommendation: Recommend that the District staff present the proposed draft. SWP Transfer Policy to the District Board for consideration, with the understanding that Subcontractors may continue to provide comments or suggest refinements prior to or during the Board's adoption process. Summary As discussed at the February 7 and March 7, 2025, SWSAC meetings, District staff are preparing to bring a proposed update to the SWP Policies to the District Board for consideration. The target date is June 17, 2025. The objective of the policy update is to clarify District priorities and criteria for SWP water supply contracting conditions - whether those are temporary (short-term; multi-year) or permanent (long-term) agreements that will serve as a framework for developing program or contracts that align with the District Board's goal of maximizing the SWP water supply benefit for the County and reducing the cost burden on the county taxpayers and Subcontractors. As such, the policies would be used to (1), guide the District staff as it works to improve SWP water management and consider cost recovery opportunities, and (2) develop related contract provisions and administrative program procedures. District staff intend to take the attached version to the District Board for consideration but acknowledge that Subcontractors may continue to provide comments or suggest refinements prior to or during the Board's adoption process. Staff also anticipates also returning to the WRAC on June 4 for them to consider an advisory vote to the Board on the proposed policy update. Attachments 1. Proposed Draft SWP Transfer Policies with Exhibit A Map (dated 4/18/25) 2. 2003 Excess Entitlement Policies (for reference) SWP Water Transfer Policies San Luis Obispo County Flood Control and Water Conservation District 4/18/2025, DRAFT State Water Project Water Transfer Policies I. INTRODUCTION A. Background The State Water Project (SWP) Water Supply Agreement (Master Contract) is a long-term contract between the Department of Water Resources (DWR) and the San Luis Obispo County Flood Control and Water Conservation District (District) which provides fort the annual purchase and delivery of up to 25,000 acre-feet (AF) of SWP water (Project Water) to San Luis Obispo County. The District, as a wholesaler of Project Water, has in turn contracted with local public water agencies and others for delivery of Project Water within its service area (each a Subcontractor and collectively, the Subcontractors) pursuant to certain agreements (collectively, the SWP Subcontracts). Additionally, the District has a side agreement with the Central Coast Water Authority (CCWA) for annual treatment of up to 4,830 AF of Project Water (CÇWA Agreement), and coordinates delivery operations with DWR and CCWA for the delivery of Project Water to the District's turnouts within the DWR-owned SWP Coastal Branch pipeline. One of the primary purposes of these Policies is to establish a framework for the District and Subcontractors that promotes flexibility and cost recovery to minimize the long-term financial burden on county taxpayers and ratepayers. B. Description of the Coastal Branch System In the 1990s, the District (on behalf of its Subcontractors) and CCWA (on behalf of its Santa Barbara County members) partnered with DWR to plan and design "Phase II" of the SWP Coastal Branch Aqueduct ("Phase !" was completed in 1968). This extension of the SWP brought Project Water supplies into San Luis Obispo and Santa Barbara counties starting in 1997. The DWR-owned pipeline (with pumping plants and storage tanks) and CCWA treatment plant (collectively, the Coastal Branch System) were developed to provide supplemental water for municipal use. For the District, the facilities were sized to deliver up to 4,830 AF annually based on its SWP Subcontracts at the time. The Coastal Branch System delivers treated water to three turnouts in San Luis Obispo County - Shandon, Chorro Valley, and Lopez - before continuing south to serve communities in Santa Barbara County (see Exhibit A). Once the water passes through these District turnouts, it enters local distribution systems and becomes subject to local agreements, policies, and oversight. In some areas, the District or County may continue to have responsibilities either as a water service provider or in their role as a land use and permitting authority - depending on local governance. C. SWP Allocation The "SWP Allocation" is the Annual Table A Amount" of 25,000 acre-feet (AF) available to the District under the Master Contract and represents the maximum annual amount of Project Water Page 1 of 6 SWP Water Transfer Policies San Luis Obispo County Flood Control and Water Conservation District 4/18/2025, DRAFT that can be delivered to the District under certain conditions. A portion of the District's SWP Allocation is committed to the Subcontractors (the Subcontracted Amount) for municipal (domestic) supply use. The Subcontractors' annual Water Supply Agreements total 4,830 AF, and Drought Buffer Water Agreements total 5,747 AF (for a combined total Subcontracted Amount of 10,577 AF). The Subcontractors Water Supply Agreements are long-term "take-or-pay" arrangements (i.e., for annual delivery of up to 4,830 AF) and provide them with the first right each year to schedule monthly Project Water deliveries to the three existing SWP turnouts within the District. Under certain conditions, this benefit means the Subcontractors may decide to utilize 100% of the District's conveyance capacity within the Coastal Branch in a given month or "delivery year" (Jan. 1 to Dec. 31). However, the take-or-pay condition means that regardless of whether the Subcontractors use 100% of the available Coastal Branch capacity needed to take delivery of the subcontracted amount under their Water Supply Agreements (i.e., the 4,830 AF), they are still obligated to pay 100% of the annual DWR Coastal Branch and CCWA treatment plant costs that are allocated to the District. Accordingly, Subcontractors shall have the first right to utilize all Project Water and Coastal Branch System capacity (conveyance and treatment) made available to the District under the Master Contract and CCWA Agreement. The remaining portion of the 25,000 AF of SWP Allocation not subcontracted is held in reserve by the District, and totals 14,423 AF (the District's Reserve Amount). Consistent with the requirements of the Master Contract the District's Reserve Amount is paid for primarily by property tax revenue which enables the District to maintain the balance of its contracted SWP water supply from DWR for the long-term benefit ofthe County. When there is available Project Water in a given year that is not needed by the District to fulfill the Subcontractors Water Supply Agreements, then that water is considered surplus Project Water (the District's Surplus Water). II. GENERAL A. Relationship. to Previously Adopted Policies These Policies replace / supersede the District's 2003 Excess Entitlement Policies approved by the Board of Supervisors sitting as the District Board (Board) on January 14, 2003. B. Application and Interpretation These Policies apply to all of the District's Project Water. The purpose of these Policies is to establish a framework that will guide District staff, the Board and its Subcontractors in maximizing the Project Water supply. The goal is to fully utilize the District's Surplus Water within the County, and develop opportunities to optimize the Subcontracted Amount with a recognition that water transfers/exchanges (on an annual, multi-year, or permanent basis) are going to be one oft the primary water management tools to achieve these objectives. Page 2 of 6 SWP Water Transfer Policies San Luis Obispo County Flood Control and Water Conservation District 4/18/2025, DRAFT These Policies are intended to apply and be limited to water management decisions concerning water delivery contracts within DWR's SWP conveyance facilities, primarily those within the Coastal Branch, as shown in Exhibit A. Although these policies apply to the entire annual SWP water supply available to the District, the District is only a wholesaler of the Project Water, and sO the Policies are limited to SWP water transfers within the District's contracted share of the DWR- owned part of the SWP system. The District is a separate legal entity from the County of San Luis Obispo, and recognizes that other laws, regulations, and policies may govern how, where, or under what conditions the Project Water can be used locally. As such, these policies are not intended to address water management decisions about Project Water once that water is within local systems, that is, once that water has passed through the DWR-owned turnout (i.e., Shandon, Chorro Valley, Lopez, etc.). Water management actions for the water at that point are subject to the respective policies and contractual arrangements of the local systems (e.g., Chorro Valley Pipeline, Zone 3/Lopez, etc.). However, these policies shall not be deemed to limit future discretionary actions by the District Board. C. SWP is a Supplemental Supply = Primarily for Urban Water Needs (But Not Exclusively) Given that SWP water is an imported supply and subject to extended delivery interruptions (annually, for up to several weeks at a time) for operations maintenance, it is to be integrated into local systems without becoming the primary supply necessary for a public water system serving domestic needs. For the County of San Luis Obispo, SWP water supply was developed as a supplemental supply to meet municipal water needs. Domestic use shall be considered the highest priority use of all SWP water made available for local use ini the County under the Master Contract. Domestic use is needed for sustenance, public health and safety, and welfare. State Water shall be used first to address public health, ensure reliable access to safe, affordable drinking water and sanitation. It recognizes that domestic use occurs both within the public water supply system service areas and outside ofi those areas in the rural areas of the County where domestic water supplies are from individual water supply wells. As part of a future program, the District will incorporate a reserve of 5,000 acre-feet (20% of its 25,000 AF SWP allocation) for short-term use only. This reserve is intended to help meet Subcontractor obligations and support countywide water resiliency and response needs. It will not be available for long-term contracts. III. PRIORITIES (GUIDING PRINCIPLES FOR HOW THE DISTRICT'S SWP ALLOCATION SHOULD BE PRIORITIZED) A. FIRST - Prioritize Needs of Subcontractors. The Subcontractors shall have first rights to Project Water. The District will prioritize meeting the needs of its Subcontractors before making Project Water available to third parties. If any Subcontractor plans to acquire additional supplies or to sell surplus supplies, the District will attempt to meet the needs of the Subcontractors first, before entering into transactions with third parties. In addition: Page 3 of 6 SWP Water Transfer Policies San Luis Obispo County Flood Control and Water Conservation District 4/18/2025, DRAFT District Surplus Water made available to third parties must not harm the District's ability to meet its obligations to the existing Subcontractors. Transferslexchanges of the District's Surplus Water with third parties can only be considered - whether temporary shor-termsingleyear or multi-year) or permanent (long- term) - under a secondpriorty/standby basis in which the Subcontractors' first right of refusal to use the District's Surplus Water is preserved, and they retain the first priority option for delivery scheduling. Financial considerations shall be provided to Subcontractors providing capacityto deliver second-priority water. This ensures deliveries of transferred water do not detrimentally impact the ability of the District to fulfill existing delivery contracts for the other subcontractors. B. SECOND - Prioritize Local Public Water Agencies and Purpose of Use. After all Subcontractors' Project Water needs are met, the District will give preference to local Public Water Agencies (within San Luis Obispo County), with water allocated according to the purpose of use (via direct delivery, in-lieu, or groundwater recharge): 1st Order - Emergency Use: Project Water needed for emergency use to ensure public safety and well-being. The intention is to give priority to transfers that address a public health need or a water shortage emergency pursuant to Water Code Section 350. 2nd Order - Domestic Use: Use of Project Water as a supplemental supply to improve water system resiliency and reliability for drinking, sanitation, and fire protection for urban and rural water users. 3rd Order - Agricultural Use: Use of Project Water for production agricultural irrigation or other farm and ranch purposes. 4th Order. Non-Domestic Use: Water allocated for non-domestic, non-agricuitural purposes such as industrial, commercial, recreational or other non-essential uses. C. THIRD = Prioritize Place of Use. The original delivery location established under each of the Subcontractors' Water Supply Agreements is considered the preferred place of use. However, when capacity allows, requests for emergency or domestic use at other locations should take precedence over requests for agricultural or non-domestic use at a preferred place of use. Among requests of the same priority (e.g., two domestic use requests), preference is given to those uses within the same/upstream financial reach - to minimize the "allocation without capacity" issue. Downstream deliveries (including transfers or new water supply agreements involving turnout locations beyond the financialconveyance reaches with dedicated capacity for that allocation) can be considered only under short-term (single-year) or on a second-prionty/standby basis in which the Subcontractors' first right of refusal is preserved, and they retain priority for delivery scheduling. Page 4 of 6 SWP Water Transfer Policies San Luis Obispo County Flood Control and Water Conservation District 4/18/2025, DRAFT D. FOURTH - Prioritize Internal Temporary Transfers/Exchanges within the District. (Temporary reallocation to balance supply among local entities.) If water remains available after meeting the needs described in Orders 1-4, the District will consider transfers or exchanges of District Surplus Water between local entities within the District, to balance out the supply. E. FIFTH - Consider External Temporary Transfers/Exchanges. Consider only after internal priorities are met; temporary transfers only, for achieving water management objectives and/or cost recovery. F. SIXTH - Additional Considerations. Additional consideration should be given to uses that: Help the District manage the District's Surplus Water to better match the variation in local domestic need that varies from year-to- -year and seasonally. Store available and/or unscheduled water deliveries for later use during times of water shortages to support municipal, groundwater basin replenishment, and agricultural benefits provided these uses are integrated with domestic or other priority uses. Complement demonstrated efforts to maximize the efficiency and beneficial use of locally available supplies. Solve or mitigate water supply problems in key wateranedsgfoundwate: basins identified by the Board. Support SWP supply planning objectives and create opportunities for the District and Subcontractors to benefit from revenue-generating water market activities that offset or recover costs. Align with State, District, or County water management plans, strategies, and priorities. IV. CRITERIA FOR USE Requests for use of the District's Surplus Water must meet the following Board-established criteria: A. Eligible Users - Subcontractors, public water agencies, special districts, and groundwater sustainability agencies established to serve municipaldomestic, agricultural, or basin water management needs. B. Restrictions on Contracting - Water cannot be contracted to non-public water agencies, or private individuals, private organizations, or institutions; the District will not establish new agreements for delivery of Project Water to entities whose primary mission is not focused on water supply management or water delivery operations for domestic, agricultural, or basin management needs. Page 50 of 6 SWP Water Transfer Policies San Luis Obispo County Flood Control and Water Conservation District 4/18/2025, DRAFT C. Approval Requirements - The County or a designated public water agency / special district must request and approve the contract for supplemental use - whether for domestic, agricultural, or non-domestic use. D. Emergency Use - Allowed if both County Board and requesting agency declare an "Emergency Condition"; use is subject to emergency declarations and all costs at that time. E. System Reliability - Use of the District's Surplus must not compromise the SWP system reliability or reduce delivery capabilities to the Subcontractors. F. Financial Considerations - All costs must be paid by the water user. Uses shall not detrimentally impact existing subcontractors from a financial standpoint. There shall be no increase in administrative costs to the Subcontractors. G. Investment Recovery - An investment recovery program is necessary to recover current and past costs. An amendment(s) to the SWP Subcontracts is anticipated to be the mechanism by which the investment recovery program is created and implemented, the development of which will necessitate the involvement of the Subcontractors. H. Regional Water Collaboration - Requests should demonstrate howthe proposed use of Project Water supports regional water supply reliability and maintains or strengthens existing partnerships that improve regional water resilience for the County. I. Compliance with Obligations and Laws - Transfers and exchanges shall be carried out consistent with all applicable requirements and obligations, including but not limited to these policies, Master Contract, Subcontracts, and all applicable laws and regulations, including the California Environmental Quality Act (CEQA). V. IMPLEMENTATION The District Board acknowledges that the existing SWP Subcontracts do not provide for a water transfer program. These Policies are intended to guide the District staff and Board in considering transfer requests and in preparing amendments to the SWP Subcontracts that would make implementation of said requests possible by creating a defined process fori temporary and permanent transfers; and it is not anticipated that any new long-term contracts will be established between the District and others for use of the District's Surplus Water until the updated SWP Subcontracts are in place. Notwithstanding, as indicated above, these Policies shall not be deemed to limit future discretionary actions by the District Board, including, without limitation, approval of a permanent transfer of existing water supply amounts under the SWP Subcontracts while the amendments needed to provide for the program contemplated herein are completed. Page 6 of 6 A RAVP AVAL - @ - 0 <: e ai 9 - 5 9 o e S 5 $ 6 N: 139 2 B 8 1 88 & e € 9 E Nr E n 9 o E o M a 8 s e a aun State Water Project Excess Entitlement Policies Approved by Board of Supervisors January 14, 2003 Excess Entitlement - Definition The District State Water Project "Excess" Entitlement is the portion of the District's total entitlement that is not contraçted to others for their deliverable or drought buffer uses. Priority of Use 1. Prior to transferring the excess entitlement for any other use, contractors of state water entitlement with capacity in Phase II of the Coastal Aqueduct shall have the first right to utilize the excess entitlement for drought buffer" (reliability) purposes under the terms of a drought buffer agreement. 2. Preference shall be given to local agencies and water purveyors regardless of whether a transfer is on an annual, multi-year, or a permanent basis. 3. No permanent transfer of the excess entitlement for use outside District boundaries shall be made prior to a final update of the District's Master Water Plan adopted by the Board of Supervisors, and then only if the transfer is consistent with the then adopted Master Plan. (See Note' below) 4. No multi-year transfer for use outside District boundaries shall be made with a term in excess of five years prior to a final update to the District's Master Water Plan adopted by the Board of Supervisors, and then out of District transfers can only take place if the transfer is consistent with the adopted Master Plan. 5. On any out -of-District transfer, preference shall be given to those that provide: a) revenues that recover current costs and some or all of the District's past costs, b) maintain the District's right to use the water in the future, or c) which are used for environmental mitigation. 6. The Public Works Director is authorized to determine the annual amount of the excess entitlement to transfer to the State Water Project "Tumback Pools" established under the existing terms of State Water Agreements. In making that determination, the Public Works Director shall first consider local needs and how the use of the Turnback Pool might impact other potential transfers. Note: These policies were adopted by the Board of Supervisors "with the understanding there will be no permanent sales outside the District." AVILA BEACH COMMUNITY SERVICES DISTRICT ESTABLISHED FEB.1997 ITEM 7.D: May 2025 Operations and Maintenance Report Compliance There were no compliance issues for the month of April. The April 2025 Self-Monitoring Reports and associated data tables & graphs will be provided in the May 13th Board meeting packet. Wastewater Treatment Plant An emergency response to a pump fail alarm at the plant revealed a mophead stuck in thei impellers ofone of the raw sewage pumps that delivers the wastewater to the plant. District staff requested outside contractor assistance to pull the pump, clear the debris and re-install the pump. District Staff also retained contractor assistance to conduct annual wet well inspections. All wet wells in the WWTP were cleaned out, pumps pulled for visual inspection, and wet well controls and lineri inspected. Everything appeared in good working order. Annual electrical inspections are underway and should be completed in May. Staff continues to work with Cloacina to address the remaining punch list items for the MBR Warranty. The MBR unit was supposed to be taken offline in April, but there was an issue with the parts on hand. That project has been delayed. Wastewater Collection System During annual inspections, the First St Lift Station was cleaned out and pumps pulled for visual inspection. Theyhad al lot of debris in theimpellers and volute. Staffdetermined that those pumps should be pulled at least twice a year (once before Memorial Day and once after Labor Day) as a preventative measure to ensure there aren't any obstructions or other issues. Water System Staff worked with the County during the Lopez water line, Boil Water Notice. At no time during the County's compliance issues did the ABCSD water system have any presence of coliform bacteria. The disinfectant residuals were maintained at a strong and safe level. Considering the County's unprecedented boil water event, staff has changed its disinfectant monitoring routine from 2-3 times per week to 51 times per week. The permit only requires a monthly check. Finally, staff retained a landscape contractor to clear vegetation around the fire hydrants on San Miguel St and Front St. The Fire Dept now has full access to the hydrants. DISCHARGER SELF-MONITORING Califomia Regional Water Avila Beach CSD ORDER R3-2017-0025 Quality Control Board, NPDES CA0047830 Central Coast Region Wastewater Treatment WDID: 3 400101001 Monthly report due last day of following month Facility Month: MARCH 2025 Annual report due January 30 Effluent and Influent Monitoring Daily Flow (MGD) Effluent Monitoring Weekly Weekly Weekly Weekly Monthly Biweekly Biweekly Daily Date Effluent Effluent Influent Influent Effluent Date Total Max Avg Total Fecal Chlorine BOD TSS BOD TSS Oil & Grease (gpm) (gpm) Coliform Coliform Residual (24HC) (24HC) (24HC) (24HC) (Grab) 1 0.053989 102 37 0.00 3/6/25 4.1 <5.0 260 220 2 0.050148 114 35 0.00 3/10/25 7.2 <5.0 200 130 <5.0 3 0.043802 82 30 2.0 <1.8 0.00 3/20/25 9.3 5.1 260 220 4 0.041519 103 29 0.00 3/27/25 9.2 7.0 230 110 5 0.053533 94 37 0.00 6 0.040271 87 28 <1.8 <1.8 0.00 Min 4.1 <5.0 200 110 <5.0 7 0.047810 92 33 0.00 Mean 7.5 <5.0 237.5 170.0 <5.0 8 0.058049 115 40 0.00 Max 9.3 7.0 260 220 <5.0 9 0.057971 109 40 0.00 BOD Removal: 96.9% TSS Removal: 100.0% 10 0.044120 85 31 <1.8 <1.8 0.00 Effluent Monitoring 11 0.040092 83 28 0.00 Weekly Weekly Weekly Weekly Date Set. Solids Turbidity pH Temp oF 12 0.043779 105 30 0.00 (Grab) (Grab) (Grab) (Grab) 13 0.053171 106 37 4.5 <1.8 0.00 3/6/25 <0.1 1.7 7.22 63.3 14 0.063469 116 44 0.00 3/13/25 <0.1 8.2 7.06 61.2 15 0.066007 107 46 0.00 3/20/25 <0.1 2.7 7.09 63.1 16 0.059666 116 41 0.00 3/27/25 <0.1 2.6 7.31 66.7 17 0.055123 105 38 21 <1.8 0.00 18 0.048411 95 34 0.00 Min <0.1 1.7 7.06 61.2 19 0.045480 87 32 0.00 Mean <0.1 3.8 7.17 63.6 20 0.035798 60 25 <1.8 <1.8 0.00 Max <0.1 8.2 7.31 66.7 21 0.049171 116 34 0.00 22 0.058434 114 41 0.00 Influent Brine Received Sludge Removal 23 0.061243 111 43 0.00 Date Volume (Gallons) Date Gallons 24 0.054091 94 38 2.0 <1.8 0.30 N/A NIA NIA N/A 26 0.049894 93 35 0.00 26 0.048069 99 33 0.00 27 0.047032 77 33 <1.8 <1.8 0.00 Effluent Limits 28 0.055042 106 38 0.00 Parameter Units Monthly Avg Weekly Avg Daily Max 29 0.059272 98 41 0.00 BOD mg/L 40 60 90 30 0.060641 112 42 0.00 Suspended Solids mg/L 40 60 90 31 0.053252 90 37 0.00 Oil and Grease mg/L 25 40 75 Min 0.035798 60 25 <1.8 <1.8 0.00 Turbidity NTU 75 100 225 Mean 0.051560 99.1 35.8 3.7 <1.8 0.01 75 Sample Median: 23 MPN/ Max 0.066007 116 46 21 <1.8 0.30 Total Coliform More than once in 30 days: 240 100 mL Total 1.598349 Effluent daily (dry weather) flow NTE 0.2 MGD (mean). Daily Maxiumum: 2,400 Chlorine Residual mg/L 6Month Median: 0.3 1.2 pH pH units Between 6.0 9.0 Icertify under penalty of perjuryt that the foregoing is true anda accurate and that Settleable Solids mL/L 1.0 1.5 3.0 thes sampling procedure and analysis useda are as. specifiedi in the Waste Discharge Order for this facility. BODITSS Removal % 275% *** *** SIGNATURE: DATE: PRINTED NAME: TITLE: AVG dEd SNOTTVS - NOW dEd SNOTTVS - - C - VS 8 1/6u 0 9 6 00 6 & 9 3 7/bw 0 Vs - SNOT7V5 DISCHARGER SELP-MONITORING Callfornia Regional Water Avila Beach CSD ORDER R3-2017-0025 Quality Control Board, NPDES CA0047830 Central Coast Region Wastewater Treatment WDID 34 400101001 Monthly report due last day of following month Facility Month: APRIL 2025 Annual report due January 30 Effluent and Influent! Monitoring Daily Flow (MGD) Effluent Monitoring Weekly Weekly Weekly Weekly Monthly Biweekly Biweekly Daily Effluent Effluent Influent Influent Effluent Max Avg Date Date Total Total Fecal Chlorine BOD TSS BOD TSS Oil8 & Grease (gpm) (gpm) Coliform Coliform Residual (24 HC) (24 HC) (24 HC) (24 HC) (Grab) 1 0.048213 95 33 0.00 4/3/25 9.8 6.5 250 220 2 0.050763 88 35 0.00 4/10/25 10 6.1 290 230 <5.0 3 0.046843 92 33 <1.8 <1.8 0.00 4/17/25 15 11 270 260 4 0.054121 98 38 0.00 4/24/25 10 17 240 300 5 0.061493 111 43 0.00 6 0.061375 110 43 0.00 Min 9.8 6.1 240 220 <5.0 7 0.053539 94 37 <1.8 <1.8 0.00 Mean 11.2 10.2 262.5 252.5 <5.0 8 0.054003 98 38 0,00 Max 15 17 290 300 <5.0 9 0.054903 119 38 0.00 BOD Removal: 95.7% TSS Removal: 96.0% 10 0.058372 108 41 13 <1.8 0.13 Effluent Monitoring 11 0.060593 113 42 0.00 Weekly Weekly Weekly Weekly Date Set. Solids Turbidity pH Temp F 12 0.065448 111 45 0.00 (Grab) (Grab) (Grab) (Grab) 13 0.072467 123 50 0.00 4/3/25 <0.1 2.2 7.25 64.7 14 0.065606 115 46 2.0 <1.8 0.00 4/10/25 <0.1 4.8 7.11 68.3 15 0.057574 130 40 0.00 4/17/25* <0.1 1.0 7.11 68.9 16 0.069103 146 48 0.00 4/24/25* <0.1 2.5 7.34 68 17 0.064401 139 45 2.0 <1.8 0.00 18 0.054290 139 38 0.10 Min <0.1 1.0 7.11 64.7 19 0.065566 110 46 0.00 Mean <0.1 2.6 7.20 67.5 20 0.058474 94 41 0.00 Max <0.1 4.8 7.34 68.9 21 0.056858 109 39 0.00 "Effluent pH samples were collected on 4/18 and 4/25. 22 0.056892 128 40 4.0 <1.8 0.00 Influent Brine Received Sludge Removal 23 0.047261 93 33 0.00 Date Volume (Gallons) Date Gallons 24 0.033688 58 23 2.0 <1.8 0.00 N/A N/A 4/11/25 4,000 25 0.046830 93 33 0.00 4/15/25 4,000 26 0.062012 105 43 0.00 27 0.062036 114 43 0.00 Effluent Limits 28 0.052848 108 37 32 <1.8 0.00 Parameter Units Monthly Avg Weekly Avg Daily Max 29 0.044866 90 31 0.00 BOD mg/L 40 60 90 30 0.043978 83 31 0.00 Suspended Solids mg/L 40 60 90 31 Oil and Grease mg/L 25 40 75 Min 0.033688 58 23 <1.8 <1,8 0.00 Turbidity NTU 75 100 225 Mean 0.056147 107.1 39.1 6.9 <1.8 0.01 7 Sample Median: 23 Max 0.072467 146 50 32 <1.8 0.13 Total Coliform MPN/ More than once in 30 days: 240 100 mL Total 1.684416 Effluent daily (dry weather) flow NTE 0.2 MGD (mean). Daily Maxiumum: 2,400 Chlorine Residual mg/L 6 Month Median: 0.3 1.2 pH pH units Between 6.0 9.0 Icertify under penalty of perjury that the foregoing is true and accurate and that Settleable Solids mL/L 1.0 1.5 3.0 the sampling procedure and analysis used are as specified in the Waste Discharge Order for this facility. BOD/TSS Removal % 275% : *** SIGNATURE: DATE: PRINTED NAME: TITLE: DISCHARGER SELF-MONITORING California Regional Water Avila Beach ORDER R3-2017-0025 Quality Control Board, CSD NPDES CA0047830 Central Coast Region Wastewater Treatment WDID 3 400101001 Monthly report due last day of following month Facility Month: APRIL 2025 Annual report due January 30 Process Sampling MBR MBR Parameter Influent Aeration (mg/L) (24HC) (grab) Date 4/10/25 4/10/25 BOD 180 (mg/L) Total Suspended Solids 120 9,800 (mg/L) Volatile Suspended Solids 8,600 (mg/L) The process sampling results attached were required by the manufacturer for the firsty year of operation of the WWTP. Avila Beach CSD staff have elected to continue monthly process sampling beyond this requirement to monitor plant performance. The constituents/requency. may change at the discretion of Avila Beach CSD. AVI d3d SNOTTVS HLNOW dEd SNOTTVS - I - 0 1/6u 00 ? 9 6 0 4 & 5 0 5 bw - 1 V SNOT7VS AVILA BEACH COMMUNITY SERVICES DISTRICT Post Office Box 309, Avila Beach, CA. 93424 TO: Board of Directors FROM: Brad Hagemann, General Managér. AW DATE: May 13, 2025 ITEM 9A: Consider Adoption of the FY 2025-26 Annual Budget including: Resolutions No.'s 2025-03, a Resolution for Determination of Appropriation Limitation for the FY 2025-26 and Resolution No. 2025-04 Adopting the FY 2025-26 Budget. Recommendation: 1. Receive Staff Report and Board Comment on the Proposed FY 2025/26 Budget 2. Open Public Hearing and Receive any Public Comment 3. Close the Public Hearing 4. Consider any further changes to the proposed budget 5. Adopt as Final, the Proposed Budget for FY 2025-26, by adopting Resolution Nos. 2025-03 and 2025-04, or if necessary, continue this item to a date certain for further consideration. Discusson/Backgound: Each year the District prepares and adopts an operating and capital projects budget for the coming Fiscal Year. The budget preparation process typically includes any adjustments to the water and/or sewer fee schedules. In late 2019 the Board retained a consultant to prepare a Cost of Services and Rate Study. In May 2020, the Board concluded the Prop 218 Hearing process and adopted a 5-year rate schedule that included a maximum 3% increase in both water and wastewater rates each year. At the Board's direction, staff1 held off the on conducting a new rate study until late 2025 or early 2026. Rates for FY 2025/26 will remain the same until the Board approves a new Rate Study and completes the Prop 218 rate hearing process. Staff presented the FY 2025/26 Preliminary Budget to the Board at the April 8, 2025, Board meeting. The Board reviewed the estimated FY 2024/25 year-end revenues and expenses; the projected FY 2025/26 revenues and expenses, and the proposed FY 2025/26 Capital Improvement Program. The Board also provided an opportunity for public comment. The Board directed staff to prepare the Draft Final FY 2025/26 Budget with no water or sewer rate increase and to schedule a Public Hearing Notice for consideration of the Draft Final FY 2025/26 budget for the May 13th, 2025, Board meeting. A formal Public Hearing Notice for the budget adoption was published on April 24, 2025. Attached is the Draft Final FY 2025/26 Budget for the Board's review and approval. The Draft Final budget anticipates: No rate increases for both the Water and Sewer rates 4% increase in county tax revenue; Slight increase in interest revenue; - $40,000 - $60,000 in Connection Fee revenue; 5% - 8% increase in utility expenses, a 5% increase in most O & M expenses and a 20% increase in Lopez water purchase costs due to the Lopez litigation; and A 10% increase to the Cal Fire annual contract, with a budget total of $240,000 The Capital Improvement Program includes the following projects: Wastewater The annual WWTP project loan payment of approximately $206,000; Continued work on the sewage collection system to minimize/eliminate inflow and infiltration; Staffis targeting a project to replace the San Miguel Street gravity sewer line from First St. to the WWTP Staff is also planning a project to paint the exterior of the WWTP Water Continued work on the water meter replacement project; Implement the recommendations from this year's water tank #1 inspection to include minor repair, and re-coating ofthe exterior on Water Tank #1 Admin Staff has initiated a project to repair/replace the fascia and paint the District Admin building. Staff intends to complete that project during FY 2025/26. Following the Board's review of the staff report and any staff": S response to Board comments or questions, the Board should: receive any public comment, close the Public Hearing, consider any changes to the Draft Budget; and then consider adoption of Resolution No. 2025-03, (which increases the District's Appropriation Limitations) and Resolution No. 2025-04 which formally adopts the FY 2025/26 District Budget. Attachments: 1. Resolution No. 2025-03 2. Resolution No. 2025-04 3. Final Draft oft the FY 2025-26 Budget AVILA BEACH COMMUNITY SERVICES DISTRICT RESOLUTION NO. 2025-03 A RESOLUTION FOR DETERMINATION OF APPROPRIATION LIMITATION FOR THE 2025-2026 FISCAL YEAR AND REQUESTING DISTRIBUTION OF SPECIAL DISTRICT AUGMENTATION FUNDS WHEREAS, Article XIII B of the California Constitution specifies that appropriations made by governmental entities may increase annually by the change in population and the change in either the California Per Capita Personal Income or the change in the local assessment roll due to local residential construction; and WHEREAS, the State Department of Finance has determined that the percent change in the California Per Capita Personal Income (CPCPI) is 1.0644 and the percent change in the population (POP) ofthe unincorporated areas of San Luis Obispo County is 0.25 and, WHEREAS, the appropriation, subject to limitation (estimated net tax proceeds excluding Augmentation Funds) for FY 2024/25 was been determined to be $7,486,919; and WHEREAS, the appropriation limit exceeds the appropriation subject to limitation; and, NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED by the Board of Directors, of the Avila Beach Community Services District, San Luis Obispo County, California, as follows: 1. That the ratio of change is and is determined as follows: 1.0644 X 1.0025 = 1.0671 2. That the 2025-2026 Appropriation Limit is and is determined as follows: 2024-2025 Limitation $ 7.486.919 2025-2026 Ratio of Change X 1.0671 2025-2026 Appropriation Limitation $7,988.999 3. That the Appropriation Limitation ($7.988.999) exceeds the Appropriation subject to Limitation ($478,389) by $7,510,610. 4. No further adjustment to the FY 2025-2026 Appropriation Limitation has been made for mandated costs. However, any new mandated costs or increases in existing mandated costs would increase the limitation by the amount of "Proceeds from Taxes" used to finance mandates in fiscal year 2025-2026. 5. That the County of San Luis Obispo distribute to the District, the District's share of the Special District's Augmentation Funds, if any, as determined by the Board ofSupervisors. Upon motion of Director seconded by Director and on the following roll call vote to wit: AYES: NOES: ABSENT: The foregoing Resolution is hereby adopted this 13th day of May 2025. Peter Kelley, President ATTEST: Secretary to the Board of Directors AVILA BEACH COMMUNITY SERVICES DISTRICT RESOLUTION NO. 2025-04 A RESOLUTION ADOPTING THE 2025-2026 FISCAL YEAR BUDGET WHEREAS, The District is required, pursuant to state codes to designate a custodian for its monies; and, WHEREAS, such custodianship requires that proper methods be used for the acquisition and disbursement of District monies; and, WHEREAS, the District desires to make known its planned activities and associated costs for the 2025-2026 fiscal year. NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED by the Board of directors, Avila Beach Community Services District, San Luis Obispo County, California, as follows: 1. That the proposed budget entitled, "Avila Beach Community Services District 2025/26 Fiscal Year Budget, 99 be adopted as submitted or amended. 2. That the budget be administered as established by past policies and practices. ON MOTION of Director seconded by Director and on the following roll call vote to wit: AYES: NOES: ABSENT: The foregoing resolution is hereby adopted this 13th day of May 2025. Peter Kelley, President ATTEST: Secretary to the Board of Directors ESTABLISHED FEB.1997 Avila Beach Community Services District FINAL 2025/26 Fiscal Year Budget Presented to the Board of Directors May 13, 2025 Peter Kelley, President Ara Najarian, Vice President Kristin Berry Howie Kennett John Janowicz Proposed by: Brad Hagemann General Manager/District Engineer Avila Beach Community Services District 2025-26 Fiscal Year Budget Fund Balances AVILA BEACH COMMUNITY SERVICES DISTRICT Cash Account Balances Estimated FY. 2024/25 Ending Balances General Checking- Five Star Approx Ending Balance 06/30/25 500,000 Pacific Premier Approx Ending Balance 06/30/25 $ 145,000 Money Market Approx Ending Balance 06/30/25 $ 800,000 LAIF - Account Balance Beginning Balance 06/30/24 $ 4,107,000 Transfer In/Out $ 0.00 Interest earned $ 191,000 LAIF Approx Ending Balance 06/30/25 $ 4,298,000 Reserve Account Balances Water Operating Reserve $ 425,000 Capaital Replacement Reserve $ 275,000 Emergency Capital Reserve $ 125,000 Rate Stabilization $ 100,000 Total Water $ 925,000 Wastewater Operating Reserve $ 525,000 Capaital Replacement Reserve $ 1,500,000 Emergency Capital Reserve $ 225,000 Rate Stabilization $ 100,000 Total Wastewater $ 2,350,000 Unallocated General Reserves $ 1,023,000 Total Approx Ending Cash Balance 06/30/25 $ 5,743,000 Total Approx Ending Cash Balance 06/30/24 $ 5,376,000 Approximate Net Difference (unaudited) $ 367,000 Avila Beach Community Services District 2025-26 Fiscal Year Budget Budget Summary ) 00000 00000000000 0 0 00000 00000 000000000 00 0 00000000 Avila Beach Community Services District 2025-26 Fiscal Year Budget Administrative Fund Avila Beach Community Services District 2025-26 Fiscal Year Budget Sanitary Fund N Avila Beach Community Services District 2025-26 Fiscal Year Budget Water Fund Avila Beach Community Services District 2025-26 Fiscal Year Budget Street Lighting Fund f & o o o - Avila Beach Community Services District 2025-26 Fiscal Year Budget Solid Waste Fund 0 0 0 C Avila Beach Community Services District 2025-26 Fiscal Year Budget Water and Sewer Rates FY 2025/26 Water Fixed and Variable Charges July 1, July 1, July 1, July 1, July 1, July 1, Rate FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Fixed Charge ($ per month) All Customers $47.88 $47.88 $49.32 $50.80 $50.80 $50.80 Variable Charge ($ per HCF) All Customers Tier 1 -01 to 5 units $4.05 $4.05 $4.18 $4.31 $4.31 $4.31 Tier 2 Over 5 units $11.67 $11.67 $12.02 $12.39 $12.39 $12.39 FY 2025/26 Wastewater Fixed and Variable Charges July 1, July 1, July 1, July 1, July 1, July 1, FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Fixed Charge ($ per HCF) All Customers $9.50 $9.50 $9.79 $10.08 $10.08 $10.08 Variable Charge ($ per HCF) Single-family Ot to 5 HCF $13.46 $13.46 $13.86 $14.28 $14.28 $14.28 Over 5 HCF 13.46 13.46 13.86 14.28 14.28 14.28 Multifamily Oto 51 HCF 13.07 13.07 13.46 13.86 13.86 13.86 Over 5 HCF 13.07 13.07 13.46 13.86 13.86 13,86 Commercial Oto5 51 HCF 16.41 16.41 16.90 17.41 17.41 17.41 Over 5 HCF 16.41 16.41 16.90 17.41 17.41 17.41 Hotels Oto 5 HCF 18.13 18.13 18.67 19.23 19.23 19.23 Over 5 HCF 18.13 18.13 18.67 19.23 19.23 19.23 Restaurants Oto 51 HCF 39.25 39.25 40.43 41.64 41.64 41.64 Over 5 HCF 39.25 39.25 40.43 41.64 41.64 41.64 Industrial Ot to 5 HCF 14.98 14.98 15.43 15.89 15.89 15.89 Over 5 HCF $14.98 $14.98 $15.43 $15.89 $15.89 $15.89 Avila Beach Community Services District 2025-26 Fiscal Year Budget Water and Sewer Capacity Fees RESOLUTION NO. 2013- 08 AI RESOLUTION OF THE BOARD OF DIRECTORS OF THE AVILA BEACH COMMUNITY SERVICES DISTRICT ADOPTING CAPACITY FEES FOR BOTH WATER AND SEWER WHEREAS, the Avila Beach Community Services District (herein "District") is a community services district organized under Govt. Code $61000 et seq.; and WHEREAS, the District has amongst its active powers the power to provide water for any beneficial uses (Govt. Code $61100(a)) and to collect and to dispose of sewage and wastewater (Govt. Code $61100(b)); and WHEREAS, the Board of Directors has reviewed the recommendations of NBS and has determined that those charges do not exceed the amount anticipated and are necessary for providing these services to new connections to the water and sewer services within the District (Govt. Code $66013); and WHEREAS, that Notice of this Public Hearing was appropriately published pursuant to Govt. Code $61016; and WHEREAS, that the honorable Board has considered the report of NBS regarding capacity fees on at least four (4) occasions. At the District's last meeting on November 12, 2013, the Board gave direction that the adoption of capacity charges be placed on the upcoming agenda; and WHEREAS, the Board recognizes that the adoption of these new connection fees could cause a hardship upon property owners/developers who have not perfected their right to connect to the District's water and sewer services and wishes to provide a one (1) month grace period before these new connection/capaciy charges take effect. NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE BOARD OF DIRECTORS OF THE AVILA BEACH COMMUNITY SERVICES DISTRICT AS FOLLOWS: 1. The above recitals are true and correct. 2. That the Board hereby adopts the connection/capaciy charges set forth in Attachment "A" to this Resolution. 3. That the effect of these charges be delayed thirty (30) days as to those holding unperfected preliminary will serves to allow for District processing but shall take effect immediately as to all new applications for District water and sewer services Page 1 of 2 PASSED AND ADOPTED by the Board of Directors of the Avila Beach Community Services District this 10th day of December, 2013, on the following roll call vote: AYES: Rowe, Janowicz, Waldron, Kelley NOES: None ABSENT: Richards ABSTAIN: None Ativ gel Peter Kelley, President Avila Beach Community Services District ATTEST: John Wallace District General Manager and Secretary to the Board APPROVED AS TO FORM: RoZ Michael W. Seitz District Legal Counsel Page 2 of2 AVILAI BEACH COMMUNITY: SERVICES DISTRICT EXHIBIT10 Watera and Wastewater Capacity Charge Analysis Preliminary Draft: Dol Not Cite/ /DIstribute. Water Fee Classification and Calculation of Maximum Fee UPDATEDI WATER CAPACITY FEES BASED ONI NO. OF EDU'S: Scenario Scenario2 Equivalence to Updated Updated ofuse Existing Water a2 Bedroom Capacity Feo Capacity Fee Type Capacity Feel SFRUniL Basedon Basedon 2 Bedroom 2 Bedroom Equivalency Equivalency Single FamilyF Residence or Condominium, per Residence Onel Bedroom $4,780.57 0.67 $3,442 $4,301 Two Bedroom $7,170.86 1,00 $5,163 $6,452 Three Bedroom $9,561,15 1.33 $6,884 $8,602 Four Bedroom $11,951.43 1.67 $8,605 $10,753 Multi Dwelling One Bedroom $3,824.46 0.53 $2,754 $3,441 Two Bedroom $5,736.69 0.80 $4,130 $5,161 Three Bedroom $7,648.92 1,07 $5,507 $6,882 Mobile Home $4,780.57 0.67 $3,442 $4,301 Barber: Shop (per chair) $1,912.23 0.27 $1,377 $1,720 Beauty Shop (per chair) $2,390.29 0.33 $1,721 $2,151 Dentist Office (per chair) $14,341.72 2.00 $10,324 $12,903 Department! Store (per employee) $764.89 0.11 $551 $688 or, iflarger, (per 1,000 square feet) $2,292.92 0.32 $1,65 $2,063 Drug Store $9,561.15 1.33 $,88 $8,602 w/Fountain Service add: $25,815.10 3.60 $i8,57 $23,226 WServing Meals add (per seat): $956.11 0.13 $680 $860 Laundry (per Standard washing machine) $19,122.29 2.67 $13,68 $17,205 Meat Market (per 1,000 squaret feet of floor area) $956.11 0.13 $68 $860 Motel or Hotel (per room) $2,390.29 0.33 $1 21 $2,151 Office Building (pere employee) $478.06 0.07 $44 $430 or, iflarger, (per 1,000 square feet) $2,294.68 0,32 $,652 $2,065 Physicians Office (per examining room) $3,824.46 0.53 $2.75 $3,441 Restaurant (per seat at 20 gallons per day per seat) $382.45 0.05 $275 $344 Theatre (per seat) $57.37 0.01 $41 $52 Other nony wateri intensive establishments: (per 500 galons perc day) $9,561.15 1.33 $6,884 $8,602 Boarding School, Elem (per student) $1,434.17 0.20 $1,033 $1,290 Boarding School, Senior (per student) $1,912.23 0.27 $1,377 $1,720 Church (per seat) $57.37 0.01 $41 $52 Country Club (per member) $478.06 0.07 $344 $430 Civic Club (per member) $57.37 0.01 $41 $52 Elementary! School (pers student) $305.96 0.04 $220 $275 Nursing Homes (per bed) $2,868.34 0.40 $2,065 $2,581 Rooming House (per resident) $1,912.23 0.27 $1,377 $1,720 Summer Camps (per resident or camper) $1,147.34 0.16 $826 $1,032 1. ABCSDO curently refers to the Capacily) Fee as al Hookup Fee, however NBSI recommends the District use Capacity Fee" as the term fort this fee to be consistent withi industry slandards. and beceuse Rn more appropriately describes what thet feei is. 2 Foruses not speçifically includedint this schedule, and for hybrid uses, assessments shaw be determined by cakculating annual water usage ofthe usei ina acre feet and multiplying by $17,057.09. 3. PerA ABCSD staff, curent capacity fess are based on Metcalf and Eddy strengthflow factors. NBS has calculatedu updated capacity foes based ont the relationship of current fees for 2-4 bedroom and: 3-bedroom SFR units to allo otherd customer classes. NBS Local Govemment Solutions 25 of 26 Web: www. nbsgov. .com Toll-Froe: 300.676.7516 Page: AVILA BEACH COMMUNITY SERVICES DISTRICT EXHBIT11 Water and Wastewater Capacity Charge Analysis Preliminary Draft: Do Not Cite /Distribute. Wastewater! Fee Classifications and Calculation of) Maximum Fep UPDATED SEWER CAPACITY FEES BASED ON NO. OF EDU'S: Scenario Scenario2 Equivalence to Updated Updated Existing Water 2-Bedroom Capaciyfce CapacityFee Type ofUse Capacisy Feel SFRURI Basedon Basedon 2 -Bedroom 2-Bedroom Equivalency Equlvalency Single Family Residence or Condominium, per Residence One Bedroom $980.94 0.67 $6,253 $8,320 TwoE Bedroom $1,471,41 1.00 $9,379 $12,481 Three Bedroom $1,961.88 1.33 $12,505 $16,641 Four Bedroom $2,452.35 1.67 $15,632 $20,801 Multi Dwelling* One Bedroom $784.75 0.53 $5,002 $6,656 Two Bedroom 51,177.13 0.80 $7,503 $9,985 Three Bedroom $1,569.51 1.07 $10,004 $13,313 Mobile Home" $980.94 0.67 $6,253 $8,320 Barber Shop" (per chair) $392.38 0.27 $2,501 $3,328 Beauty Shop" (per chair) $490,47 0.33 $3,126 $4,160 Dentist Office"" (per chair) $2,942.83 2.00 18,755 $24,962 Department Store (per employee) $156.95 0.11 s,000 $1,331 or, iflarger, (per 1,000s square feet) $470.49 0.32 2,99 $3,991 Drug Siore" $1,961.88 1.33 $/2,505 $16,641 w/Fountain Service add: $5,297.09 3.60 $13,745 $44,931 "Serving Meals add (per seat): $196.19 0.13 $.251 $1,664 Laundry" $3,923.77 2.67 $25,011 $33,282 (per Standard washingr machine) Meat Market" $196.19 0.13 $1 51 $1,664 (per1 1,000 square feelo off floor area) Motel orh Hotel (perr room) $490.47 0.33 $3/26 $4,160 Office Building" (pere employee) $98.09 0.07 $2 $832 or,it iflarger, (per 1,000 square feet) $470.85 0,32 si,01 $3,994 Physicians Office" $784.75 0.53 $i,012 $6,656 (pere examining room) Restaurant" $78,48 0,05 5500 $666 (pers seat atz 209 gallons per day per seat) Theatre" (per seat) $11.77 0.01 $75 $100 Other non water intensive establishments": (per 500 gallons per day) $1,961.88 1.33 512,505 $16,641 Boarding School, Elem (per student) $294.28 0.20 $1,876 $2,496 Boarding School, Senior (pers student) $382.38 0.27 $2,501 $3,328 Church (pers seat) $11.77 0.01 $75 $100 Country Club (pern member) $98.09 0.07 $825 $832 Civic Club* (pern member) $11.77 0.01 $75 $100 Elementary School (per student) $62.78 0.04 $400 $533 Nursing Homes (per bed) $588.57 0.40 $3,752 $4,992 Rooming House (per resident) $392.38 0.27 $2,501 $3,328 Summer Camps (per resident or camper) $235.43 0.16 $1,501 $1,997 1. ABCSDO curently refers tot the Capacily Foea as a Hookup Foo, however NBS recommends fhe District use "Capacily Foe"ast thet fem for this fee tobe consistent wihi industry slandards and becausek Rmore approprialely describes what the fee is. 2. Forl those uses nots specificaly includeda hn the foregoing Schedule, and! for hybrid uses, assessments shallbe delennined! by calculaling annual water usage afthe use In acre loet andr muriplyingh byt the applicables acre footn rate for thato use(s) under Paragraph A B, or C afrss seotion. 3.A PerA ABCSD: stalf, current capacity fosr are basedo on Metcalfa and Eddys strength/low factors. NBS has calculated updatedo capacily fsest based ont the relationshipo ofo current lees for 2-bedroom and 3-bedroom SFR units tos allo other customer dlasses. Thek folowingn noles are applicable to the existing capecity foes: A, Uses in which a ration ofwater used! to sewage producediss essentialy- 100% water used, 80% sewage produced; based upon $1,987.54, per acre foot annual waler use. Usesi in which ratioc olv water used! lo sewage producedis essentially 100% water used, 90% sewage produced; based upon $2,208.38 par acre footo ofw water used, markedb by : :. Usesh in whiche essentialy 100% ofu the water usedh s converte ed to sewege; based upon: $3,229. 74 par acre foot olv water used, markedb by NBS Local Govemment: Solutions Pagez 26 of26 Web: www. nbsgov.com Toll-Free: 800.876.7516 Avila Beach Community Services District 2025-26 Fiscal Year Budget District Organization Chart - - Avila Beach Community Services District 2025-26 Fiscal Year Budget Compensation Effective 7/1/25 Avila Beach Community Services District 2025-26 Fiscal Year Budget Capital Equipment/Projects AVILA BEACH COMMUNITY SERVICES DISTRICT Post Office Box 309, Avila Beach, CA. 93424 MEMORANDUM TO: Board of Directors FROM: Brad Hagemann, General Manager 7W DATE: May 13, 2025 ITEM 9B: General Counsel Contract Review Recommendation: Receive staff report; Provide comments or suggestions regarding the performance of Price, Postel and Parma; Provide any comments on the proposed updated Legal Services Agreement; and consider approval of the proposed 6% rate increase. Discussion: The Avila Beach Community Services District Board of Directors retained Price, Postel and Parma (PPP), LLP as their General Counsel in January 2021. The Legal Services Agreement with PPP, included a clause that stated "the hourly rates for legal services referenced above, shall be subject to a 3% annual increase. 99 PPP has never increased their fees. In April 2025, PPP proposed a 6% increase in their fees effective June 1, 2025. The cost of living/inflation from January 2021 to the present has increased well over 6%. Staff believes that PPP have been providing very good legal counsel services to the District over the past four plus years and recommends the Board favorably concur with their proposed rate increase. Attachment: Updated Legal Services Agreement and proposed rate increase LEGALSERVICES AGREEMENT BETWEEN THE AVILA BEACH COMMUNITY SERVICES DISTRICT AND PRICE, POSTEL & PARMA LLP This Legal Services Agreement (hereinafter "the Agreement") is entered into by and between the AVILA BEACH COMMUNITY SERVICES DISTRICT (hereinafter "ABCSD" or "the District") and PRICE, POSTEL & PARMA LLP (hereinafter collectively ATTORNEY"). Timothy M. Cary and/or Shannon DeNatale Boyd personally will serve as the General Counsel for ABCSD. ABCSD and ATTORNEY are hereinafter collectively referred to as "the Parties". This Agreement is intended to authorize ABCSD to pay from any available funds fees and costs associated with legal services furnished by ATTORNEY in accordance with the terms and provisions of this Agreement. The Parties intend this Agreement to be effective from June 1, 2025 and continue until terminated by either Party. Now, therefore, ABCSD and ATTORNEY agree as follows: 1. ATTORNEY will provide legal services to ABCSD as ABCSD's ATTORNEY upon ABCSD's request. Legal services shall be provided only as requested by ABCSD and according to ABCSD's direction, subject to the exercise of ATTORNEY's professional judgment. ATTORNEY will provide primary legal services to advise the Board and the District concerning matters including but not limited to those related to the administration ofthe ABCSD, Board meeting issues, personnel matters, litigation, contracts, claims, labor negotiations and general legal matters, judicial, arbitration, mediation, or negotiation proceedings, and labor negotiations, and including the following services, and including but not limited to the following: a. Review and edit draft Board meeting agendas, b. Conduct telephone conferences with the General Manager and District Staff to prepare for Board ofDirectors meetings. C. Advise the Board and the General Manager regarding Brown Act requirements. d. Attend meetings of the District Board ofI Directors as requested. e. Draft and/or review ordinances, resolutions, contracts and leases. f. Conduct telephone conferences with the General Manager and District staff regarding District matters as needed. g. Defend or prosecute actions in court or before administrative agencies on behalf of the District. h. Render written opinions to the Board of Directors and/or General Manager. 1. Attend meetings other than District Board meetings as requested by the Board of Directors or General Manager. J. Render legal services relating to other extraordinary or complicated matters as requested by the District. 2. ABCSD will communicate requests for the provision oflegal services for particular matters in writing or electronically when possible, or orally or telephonically when necessary or advisable. ATTORNEY will endeavor to confirm assignments in writing or electronically, whether such assignments are given in writing, electronically, orally, telephonically, or otherwise. By approving this Agreement, the Board hereby authorizes and directs ATTORNEY to engage in the activities and tasks on behalf of ABCSD as agreed to by ATTORNEY and ABCSD. 2025 Legal Services Agreement AVILA BEACH CSD & PRICE, POSTEL & PARMA LLP Page 2 of 6 3. ATTORNEY at all times in the performance oft the Agreement is an agent ofthe Board and an independent contractor, and not an employee of ABCSD. ATTORNEY shall at all times hold himself ready to perform District duties pursuant to this Agreement. However, it is understood that ATTORNEY is free to engage in full- time private practice and it will be necessary to provide adequate notice to ATTORNEY of the need for services referenced in paragraph 1. 4. ATTORNEY's fees are calculated on a straight hourly basis, in minimum .1 hour increments (6 minutes), according to the hourly rates as set forth below: Practice Area Hourly Rate Travel Rate District General Counsel; Public Agency/ $245/hour for $80/hour for travel Municipal Law General Services Back-up for the District General Counsel $245/hour for $80/hour for travel General Services E-Documents and Public Records Act $245/hour $80/hour for travel Taxes and Fees, Prop. 218, Assessments $280/hour $95/hour for travel Eminent Domain $310/hour $105/hour for travel Labor and Employment $245/hour $80/hour for travel Litigation $310/hour $105/hour for travel Contracts and Transactions $245/hour $80/hour for travel Construction Law, Contracts and Claims $280/hour $95/hour for travel Insurance, Liability and Tort Claims $280/hour $95/hour for travel Land Use/ Development $280/hour $95/hour for travel Public Finance $280/hour $95/hour for travel Environmental and Energy $280/hour $95/hour for travel Water Rights and Water Law $280/hour $95/hour for travel ATTORNEY will bill for paralegal time at the rate of$160 per hour, senior law clerks at the rate of$185 per hour, junior law clerks at the rate of$160 per hour and document clerks at the rate of $80 per hour. ABCSD will reimburse ATTORNEY for reasonable costs, fees, and expenses incurred in providing legal services to ABCSD. These shall include, but not be limited to, court filing fees, court reporter and transcription services, outside postage, outside reprographics and copying, translation services and demonstrative exhibits, expert witness fees, or other costs that are a necessary and reasonable part of providing legal services to ABCSD. ABCSD shall reimburse such costs as they are submitted to ABCSD by ATTORNEY. ATTORNEY will bill for ATTORNEY travel time as set forth above. This includes travel for Board Meetings as well as necessary meetings at the ABCSD offices. Mileage will be charged at the standard IRS mileage rate in addition to the reduced hourly rate. ABCSD will reimburse ATTORNEY for the actual cost of travel including air travel, lodging and meals, parking and related miscellaneous expenses. 5. ATTORNEY will send ABCSD monthly statements for fees and costs incurred. Each 2025 Legal Services Agreement AVILA BEACH CSD & PRICE, POSTEL & PARMA LLP Page 3 of 6 statement will be due and payable within thirty days of mailing. ATTORNEY will provide a statement within 45 days ofthe end of each month in which services are rendered. The statements shall include the amount, rate, basis of calculation or other method of determination of the fees and costs, which costs will be identified by item and amount. 6. ABCSD shall send payment to ATTORNEY for billed fees and expenses as soon as reasonably practicable after receiving the statement. Should ATTORNEY not receive payment in full within 30 days of the mailing date, ATTORNEY shall charge simple interest at the rate of twelve percent (12%) per annum on the balance for all overdue amounts, until paid. 7. The hourly rates for legal services referenced in paragraph 4 shall be subject to a 3% annual increase, commencing January 1, 2026. 8. ATTORNEY has, and shall maintain, professional liability insurance in the amount of not less than $1,000,000.00 per occurrence, and $5,000,000.00 aggregate. 9. ABCSD agrees to cooperate with ATTORNEY, to keep ATTORNEY fully informed of any information or developments that may come to ABCSD's attention and that may be pertinent to any matter in which ATTORNEY is representing or advising ABCSD. ABCSD also agrees to abide by this Agreement and to cooperate with and assist ATTORNEY in all matters related to ATTORNEY's representation of ABCSD, including but not limited to providing necessary information and documents and having ABCSD personnel appear when necessary. 10. ATTORNEY will take reasonable steps to keep ABCSD informed about significant developments relating to the representation, including promptly complying with reasonable requests for information and/or for copies of significant documents when necessary to keep ABCSD reasonably informed. 11. On ATTORNEY's recommendation and the authorization of either the Board of Directors or the General Manager, ATTORNEY may retain Special Counsel to associate with District legal counsel where the nature of the matter warrants the need for Special Counsel's expertise. 12. ABCSD may terminate this Agreement at any time. ATTORNEY may withdraw with ABCSD's consent, for good cause or as permitted by law. Good cause includes, without limitation, ABCSD's breach oft this Agreement, ABCSD's refusal to cooperate on a material matter, or any fact or circumstance that would reasonably constitute good cause for withdrawal or otherwise provide grounds for withdrawal under the law or the Rules of Professional Conduct governing attorneys in California. 13. When ATTORNEY's services conclude, all unpaid charges based on legal services provided and expenses incurred by ATTORNEY prior to the effective date ofthe termination, will immediately become due and payable. After services conclude, ATTORNEY will refund any portion of any advance deposits that has not been earned, and upon ABCSD's request, will deliver ABCSD's files and property in ATTORNEY's 2025 Legal Services Agreement AVILA BEACH CSD & PRICE, POSTEL & PARMA LLP Page 4 of 6 possession, whether or not ABCSD has paid for all services. 14. ATTORNEY will have a lien for all unpaid legal fees and costs on all claims or causes of action that are the subject of ATTORNEY'S representation of ABCSD under this contract. ABCSD agrees that ATTORNEY'S lien automatically attaches to any award or recovery ABCSD may obtain whether by settlement, arbitration award, jury verdict, court judgment or other order. 15. After services conclude, ATTORNEY will, upon ABCSD's request, deliver the legally required files to ABCSD, along with any funds or property of ABCSD's in ATTORNEY's possession. If ABCSD requests the files, ATTORNEY will retain a copy of the file at the ABCSD's expense. If ABCSD does not request the files, ATTORNEY will retain the files for a period of five (5) years after the representation ends. IfABCSD does not request delivery of the files before the end of the five (5) year period, ATTORNEY will have no further obligation to retain the files and may, at ATTORNEY's discretion, destroy the files without further notice to ABCSD. At any point during the five (5) year period, ABCSD may request delivery ofthe files. ABCSD will be responsible for the cost of transporting any stored files to a new location. 16. ANY CONTROVERSY OR CLAIM ARISING OUT OF OR RELATING TO THIS CONTRACT, OR THIE BREACH THEREOF, SHALL BE SETTLED BY BINDING ARBITRATION ADMINISTERED IN ACCORDANCE WITH THE AMERICAN ARBITRATION ASSOCIATIONS GUIDELINES FOR COMMERCIAL ARBITRATION RULES. JUDGMENT ON THE AWARD RENDERED BY THE ARBITRATORIS) MAY BE ENTERED IN ANY COURT HAVING JURISDICTION THEREOF. ABCSD INITIALS SDB ATTORNEY INITIALS 17. Claims shall be heard by a single arbitrator. ATTORNEY shall provide ABCSD with three (3) proposed arbitrators, from which ABCSD shall choose one (1) arbitrator to hear the dispute. The place of arbitration shall be in San Luis Obispo County, California. The arbitration shall be governed by the laws of the State of California. Depositions shall be limited to a maximum of2 per party and shall be held within 30 days of the making of a request. Additional depositions may be scheduled only with the permission of the arbitrator, and for good cause shown. Each deposition shall be limited to a maximum of 4 hours duration. Hearings will take place pursuant to the standard procedures oft the Commercial Arbitration Rules that contemplate in person hearings. 18. Arbitration hearings shall take place within 180 days of filing for arbitration and awards shall be rendered within 60 days. The Arbitrator shall agree to these limits prior to accepting appointment. Each party shall bear its own costs and expenses and an equal share ofthe arbitrators' and administrative fees of arbitration. The parties agree that failure or refusal of a party to pay its required share of the deposits for arbitrator compensation or administrative charges shall constitute a waiver by that party of the right to present evidence or cross-examine witness. In such event, the other party shall be required to 2025 Legal Services Agreement AVILA BEACH CSD & PRICE, POSTEL & PARMA LLP Page 5 of 6 present evidence and legal argument as the arbitrator may require for the making of an award. Such waiver shall not allow for a default judgment against the non-paying party in the absence ofe evidence presented as provided for above. 19. If any provision of the Agreement is held in whole or in part to be unenforceable for any reason, the remainder of that provision and of the entire Agreement will be severable and remain in effect. 20. ATTORNEY makes no promises or guarantees about any matter or about the outcome of any matter. Any comments by ATTORNEY (before or after the effective date of this Agreement) about any matter or the potential outcome of any matter are expressions of opinion only, are not intended as promises or guarantees, and shall not be deemed to be promises or guarantees. Similarly, any estimate of fees given by ATTORNEY shall not be a limitation on fees or a guarantee that fees and costs will not exceed the amount of the estimate. Actual fees may vary significantly from any estimates given. 21. All notices, letters or other communications, electronic or otherwise, authorized or required by the Agreement shall be deemed transmitted, served and effective for all purposes on the date they are reduced to writing, deposited in the United States mail, postage prepaid, and by electronic mail, addressed as follows below. In addition, ATTORNEY will send any notices to the then-current ABCSD Board President. Shannon DeNatale Boyd Brad Hagemann PRICE, POSTEL & PARMA LLP General Manager 200 East Carrillo Street, Suite 400 Avila Beach Community Services District Santa Barbara, CA 93103 100 San Luis Street sboyd@ppplaw.com Avila Beach, CA 93424 smmasR.ArmNleN THE PARTIES HAVE READ AND UNDERSTOOD THE FOREGOING TERMS AND AGREE TO THEM AS OF THE DATE ATTORNEY FIRST PROVIDED SERVICES. IF MORE THAN ONE ABCSD SIGNS BELOW, EACH AGREES TO BE LIABLE, JOINTLY 2025 Legal Services Agreement AVILA BEACH CSD & PRICE, POSTEL & PARMA LLP Page 6 of 6 AND SEVERALLY, FOR ALL OBLIGATIONS UNDER THIS AGREEMENT. THE ABCSD SHALL RECEIVE A FULLY EXECUTED DUPLICATE OF THIS AGREEMENT. Shannon DeNatale Boyd Peter Kelley Price, Postel & Parma, LLP Avila Beach Community Services 200 East Carrillo Street, Suite 400 District Santa Barbara, CA 93103 100 San Luis Street Avila Beach, CA 93424 DATED: Peter Kelley BOARD PRESIDENT, AVILA BEACH COMMUNITY SERVICES DISTRICT DATED: Brad Hagemann, GENERAL MANAGER, AVILA BEACH COMMUNITY SERVICES DISTRICT REPRESENTATION ACCEPTED SHANNON DENATALE BOYD PRICE, POSTEL & PARMA, LLP DATED: 5/1/2025 By Shannon DeNatale Boyd ATTORNEY Avila Beach Community Services District Price, Postel, & Parma, LLP Proposed Rate Increase Plus 6% Proposed Rate Increase Hourly Travel Hourly Travel Hourly Practice Area Travel Rate Rate Rate Rate Rate Rate District General Counsel; Public Agency/ Municipal $230 $75 Law $243.80 $79.50 $ 245.00 $ 80.00 Back-up for the District $230 $75 General Counsel $243.80 $79.50 $ 245.00 $ 80.00 E-Documents and Public $230 $75 Records Act $243.80 $79.50 $ 245.00 $ 80.00 Taxes and Fees, Prop. 218, $265 $90 Assessments $280.90 $95.40 $ 280.00 $ 95.00 Eminent Domain $295 $100 $312.70 $106.00 $ 310.00 $ 105.00 Labor and Employment $230 $75 $243.80 $79.50 $ 245.00 $ 80.00 Litigation $295 $100 $312.70 $106.00 $ 310.00 $ 105.00 Contracts and Transactions $230 $75 $243.80 $79.50 $ 245.00 $ 80.00 Construction Law, Contracts $265 $90 and Claims $280.90 $95.40 $ 280.00 $ 95.00 Insurance, Liability and Tort $265 $90 Claims $280.90 $95.40 $ 280.00 $ 95.00 Land Use/ Development $265 $90 $280.90 $95.40 $ 280.00 $ 95.00 Public Finance $265 $90 $280.90 $95.40 $ 280.00 $ 95.00 Environmental and Energy $265 $90 $280.90 $95.40 $ 280.00 $ 95.00 Water Rights and Water Law $265 $90 $280.90 $95.40 $ 280.00 $ 95.00 Paralegal Rate $150 - $159.00 $ 160.00 Senior Law Clerk Rate $175 - $185.50 - $ 185.00 Junior Law Clerk Rate $150 $159.00 $ 160.00 Document Clerk Rate $75 - $79.50 - $ 80.00 - Effective 06/01/2025 AVILA BEACH COMMUNITY SERVICES DISTRICT Post Office Box 309, Avila Beach, CA. 93424 MEMORANDUM TO: Board of Directors 117 FROM: Brad Hagemann, General Manager DATE: May 13, 2025 ITEM 9C: Award a Professional Services Contract for water meter installation Recommendation: Receive this staff report, and direct staff to execute a Professional Services Agreement with Grace Environmental Services for assistance with installation ofnew water meters, consistent with their April 18, 2025, Proposal. Discussion: Approximately 80% of the water meters in the District has been in service for over 20 years and need replacement. In Fiscal Year 2023/24 the District initiated a project to replace the old water meters and install new meters using Automated Meter Read (AMR) technology. AMR compatible meters will provide for more accurate, and more efficient meter reads and decrease the staff time for reading meters and completing the monthly billing process. As meters completely fail or when we install meters for new projects, we use AMR compatible meters. However, we have not been able to make much progress in changing out the meters utilizing only in-house staff resources. At a recent County wide water meeting, the staff at Cambria Community Services District advised me that they had retained Grace Environmental Services to assist with their meter install program. CCSD staff reported that they are very pleased with Grace's progress and expertise. CCSD estimates their project will be completed in June, well ahead of schedule. I reached out to Grace Environmental and requested them to provide a proposal for assisting ABCSD with our meter installation program. Staff at Grace Environmental include licensed water distribution and treatment operators, sO they are knowledgeable in the proper procedures and techniques for working on water distribution systems and safely installing new meters. Grace provided the attached April 18, 2025, professional services proposal. Staff recommends the Board approve the proposal and authorize staff to execute a professional services contract with Grace to assist with the installation of new water meters. Attachment: April 18, 2025 Proposal from Grace Environmental Services GRACE ENVIRONMENTAL SERVICES 2060D E. Avenida De Los Arboles #327, Thousand Oaks, CA 91362 - (805) 431-6253 - www.graceenviro.com April 18, 2025 Brad Hagemann Avila Beach Community Services District ymamaspteepilcen (805)835-3163 RE: Avila Beach CSD Meter Replacement Project Mr. Hagemann, Thank you for the opportunity to send you a proposal for this work. As we discussed this proposal would encompass your Meter Replacement Project with quantities you provided previously. Inclusions Sufficiently clean out meter box to facilitate removal and replacement of water meter Replacement of: 5/8", 1", 1.5", and 2" Meters - Quantities Provided by Mr. Hagemann (See Below) Assumptions: Assumes a min of 15x - 5/8" or 1" meters available per Work Day Assumes Existing Meter Lid can accept or does not need modification for AMI Assumes Lay-Length of new iPerl Meters works with existing meter lay length. ABCSD to Notify Homeowners to Meter Replacement, and Water Shut-Off ABCSD to provide new meters with 0-rings and gaskets ABCSD to provide dumpster or location for meter disposal ABCSD to provide water for ditch witch use, as needed. (Can purchase if necessary) Exclusions: Purchasing of Water Meters, and associated 0-rings, gaskets, etc. Purchasing ofNew Water Meter Box Lids Curb Stop Valve Replacement or Exercising Cost of Third-Party Services Costs due to system failure or inadequacies not caused by GES operations. Avila Beach CSD Meter Replacement Project: 5/8" Meter (Based on 325): $275.00/EA 1" Meter (Based on 50): $275.00/EA 1.5"& 2"1 Meters (Based on 9x 1.5"& 4x2") $350.00/EA Thank you, Steve Orellana Regional Manager, Central & Northern Calif. Grace Environmental Services (951)541-3523 AVILA BEACH COMMUNITY SERVICES DISTRICT Post Office Box 309, Avila Beach, CA. 93424 MEMORANDUM TO: Board of Directors 2A44 FROM: Brad Hagemann, General Manager DATE: May 13, 2025 ITEM 9D: Review ofthe Avila Valley Regional Wastewater Alternatives Analysis prepared to San Miguelito Mutual Water Company (SMMWC); and consider forming an Ad Hoc Subcommittee for the project Recommendation: Receive this staff report; discuss the draft Avila Valley Regional Wastewater Alternatives Analysis prepared by San Miguelito Mutual Water Company; and consider forming an Ad Hoc Subcommittee to review the draft report in more detail, meet with members of the SMMWC Subcommittee, as needed, and provide any recommendations to the full Board at a future meeting or meetings. BackroundDscusion: SMMWC currently operates the Wild Cherry Canyon WWTP with a permitted design flow of 150,000 gallons per day (gpd). Current Wild Cherry Canyon WWTP flows are approximately 75,000 gpd and SMMWC projects buildout flow could reach up to 99,000 gpd. The Regional Water Quality Control Board recently enrolled the WWTP into their General Waste Discharge Order which imposes stricter effluent limits that the existing WWTP cannot meet without costly upgrades. In addition, the land lease for the WWTP cannot be renewed, requiring an alternative solution for wastewater treatment. SMMWC retained Water Systems Consulting and Wallace Group to prepare a Wastewater Alternatives Analysis to assist SMMWC in deciding their course of action. The study aims to determines a cost-effect and sustainable approach for wastewater conveyance, treatment and disposal and/or reuse. The engineering team considered three alternatives: 1. Pump the raw wastewater to the City of San Luis Obispo WWTP; 2. Pump the raw wastewater to the City of] Pismo Beach WWTP; and 3. Collaborate with the Avila Beach Community Services District to expand the existing ABCSD WWTP to accept additional flows from SMMWC and/or other Avila Valley wastewater producers. The Executive Summary ofthe Draft Report is provided as an attachment to this staff report. The purpose of this item is to provide an opportunity to discuss the draft report and provide any direction to staff. Attachment: Executive Summary of the Wastewater Alternatives Analysis SAN MIGUELITO SLICAL WATER COMPANY SAN MIGUELITO MUTUAL WATER COMPANY Draft Avila Valley Region Wastewater Alternatives Analysis FEBRUARY 2025 NO. C89406 CIVI OF CAL PUpRIEN uE dens Cmsnlitmw me U WSC WSC Executive Summary Executive Summary The Avila Valley Region Wastewater Alternatives Analysis, prepared for the San Miguelito Mutual Water Company (SMMWC), evaluates viable solutions for SMMWC's Wo astewater management in response to new regulatory requirements and land lease constraints at the Wild Cherry Canyon Wastewater Treatment Plant (WWTP). The study aims to determine a cost- effective and sustainable approach for wastewater conveyance and treatment. IN THIS SECTION Introduction Design Criteria Alternatives Analysis Recommendations Draft Avila Valley Region Wastewater Alternatives Analysis San Miguelito Mutual Water Company ES-1 WSC Executive Summary Introduction SMMWC currently operates the Wild Cherry Canyon WWTP with a permitted design flow of 150,000 gallons per day (gpd). The WWTP was recently enrolled in the Central Coast Regional Water Quality Control Board's General Waste Discharge Requirements Order R3-2020-0020, which imposes stricter effluent limits that the existing WWTP cannot meet without costly upgrades. Additionally, the land lease for the WWTP cannot be renewed, requiring an alternative solution for wastewater treatment. This study analyzes four alternatives: Sending wastewater for treatment at the City of San Luis Obispo (SLO) Water Resource Recovery Facility (WWRF) Sending wastewater for treatment at the City of Pismo Beach WWTP Sending wastewater to and expanding the treatment capacity at the Avila Beach Community Services District (ABCSD) WWTP Consolidating County Service Area 12 (CSA-12) private septic users in the Avila Valley into a regional system for treatment at one of the above treatment facilities Each alternative was assessed based on technical feasibility, conceptual costs, environmental considerations, and long-term sustainability. Design Criteria The design criteria outlines the anticipated wastewater flows for SMMWC and other stakeholders. Table ES-1 presents the current and buildout average annual daily flow in gallons per day (GPD) used to size new facilities for each alternative. Table ES-1: Current and Buildout Average Annual Daily Flow Average Annual Daily Flow Service Area Current (GPD) Buildout (GPD) SMMWC 73,300 99,100 ABCSD + Harbor District 51,000 63,700 Private Septic Users 45,300 54,900 SMMWC's influent wastewater quality characteristics were analyzed based on a 2012-2013 characterization study and self-monitoring reports since 2020. SMMWC's wastewater loading is residential in characteristics and is unlikely to cause loading issues under any of the potential treatment alternatives. Accepted engineering practices and standards for sewer gravity mains, force mains, and lift stations are defined in Section 2.3. The design criteria are used to develop and size the proposed infrastructure for each alternative. Draft Avila Valley Region Wastewater Alternatives Analysis San Miguelito Mutual Water Company I ES-2 WSC Executive Summary Alternatives Analysis City of San Luis Obispo Alternative Three alignment options, shown in Figure ES-1, were developed to pump SMMWC's wastewater to the City of SLO's collection system, which ultimately flows to the SLO WWRF for treatment. Based on discussions with the City, the SLO WRRF has sufficient capacity to accept additional flows from SMMWC and/or CSA-12 private septic users. The first two options aim to minimize new force main construction by utilizing SMMWC's existing collection system and changing the direction of flow in existing force mains. Both options include about five miles of new 8-inch force main and the reconstruction of SMMWC's Lift Station 1. The alignment for Option 1 is along public roads and right of way, while Option 2 is along the Bob Jones Trail and planned trail extension route. Option 1 capital cost is approximately $23.4 million and Option 2 is $22.4 million. See Appendix A for a detailed opinion of probable costs. Although these options minimize new pipeline construction to save capital costs, it will be complex to maintain operation of SMMWC's collection system during construction and start up for the pipeline sections that reverse flow in the collection system. Option 3 diverts flow downstream of Lift Station 2 instead of reversing flow within the existing collection system. This alignment includes about 6.7 miles of new 8-inch force main and a new lift station along the alignment. The capital cost for alignment Option 3 is estimated to be $31.7 million (See Appendix A for a detailed opinion of probable costs). Although this alternative has more pipeline construction and higher costs, it has better constructability compared to alignment Option 1 and 2 because it can be constructed without impacting the rest of the collection system. Additionally, the new lift station in Option 3 is located near the CSA-12 private septic users and can serve these users as well. All alignment options assume tie into the City's collection system at the southernmost manhole on Calle Joaquin Road. The force main at the tie in location will need to be either constructed across steep terrain adjacent to Highway 101 and through Johnson Ranch Open Space, which may not be possible due to restrictions in the Open Space or the California Department of Transportation (Caltrans), or the force main will need to be bored under SLO Creek and Highway 101. Both tie in options will be challenging to construct. This alternative may have potential indirect supply benefits for SMMWC. The City of SLO discharges treated effluent to the SLO Creek, which flows downstream to Avila Beach and discharges to the Pacific Ocean. SMMWC's wells are located near the SLO Creek, and recent well pump tests indicate that the creek recharges the groundwater basin that SMMWC's wells produce water from, thereby increasing SMMWC's water supply reliability (Cleath Harris Geologists, 2022). Additionally, the total dissolved solids (TDS) concentration in SMMWC's flows may impact the City of SLO's ability to meet their future TDS limits. If the SLO WRRF's TDS limits were reduced, the City of SLO could require SMMWC to reduce their TDS concentration in the future. Draft Avila Valley Region Wastewater Alternatives Analysis San Miguelito Mutual Water Company ES-3 Legend SLO'WRRF WWTP CSA-12 Private Septic Users SLO System Tie-In SMMWC System at Calle Joaquin Abandon Lift Station Road Existing Lift Station - - Existing Force Main - Abandon Options 1 and 2 - Lift Station #1 - Upsize MIRse Exisiting Force Main - Reverse Flow Proposed Force Main - Option 1 Proposed Force Main - Option 2 Option 3 New Lift Station Proposed Force Main - Option 3 Force Main Along Bob Jones Trail and SLO System Planned Extension Calle Joaquin Lift Station Gravity Main SLO Service Area Force Main Along Wild Cherry New Force Main Out Ontario Rd Canyon WWTP TP of Lift Station #2 LS S AVILA CH S PORT SAN DUIS Ralsade Park N Prepared by Prepared for Avila Valley Region 0 0.6 1.2 Mi Wastewater Alternatives I Analysis 1 2 Km WSC SANM MIGUELITO a Figure ES-1: Map of the City of San Luis Obispo WRRF WSC Executive Summary City of Pismo Beach Alternative Based on direction provided by the City of Pismo Beach, the Pismo Beach WWTP and collection system have the capacity to accept additional flows from SMMWC and/or CSA-12 private septic users. The City has indicated that SMMWC could tie into their collection system at the City's Shell Beach Road force main. Two alignment options were considered for this alternative, shown in Figure ES-2. Alignment option 1 utilizes the existing collection system to minimize new pipelines, and includes about 2.5 miles of 8-inch force main along the Bob Jones Trail to Shell Beach Road and the reconstruction of SMMWC's Lift Station 1. The capital cost is approximately $16.4 million (See Appendix A for a detailed opinion of probable costs). This option has complex constructability similar to the City of SLO alignment options 1 and 2. Alignment option 2 does not reverse flows in the collection system, and includes about 3.8 miles of 8-inch force main along Avila Beach Road to Shell Beach Road and a new lift station located near the CSA-12 Private Septic Users. The capital cost is approximately $20.6 million (See Appendix A for a detailed opinion of probable costs). Although it is a higher cost than option 1, alignment option 2 can be constructed without impact to SMMWC's collection system and the new lift station can serve private septic users in the Avila Valley. Both alignment options include the replacement of the City's Sunset Palisades Lift Station and force main, a critical component of Pismo Beach's wastewater collection system that will be impacted by the SMWMC's connection to the Shell Beach force main and is nearing the end of its useful life. The Pismo Beach WWTP discharges to the ocean via a shared outfall with South San Luis Obispo County Sanitation District and does not currently have TDS limitations, making it an attractive option for compliance with stricter water quality regulations. However, this alternative does not have any water supply benefits for SMMWC, as treated effluent is discharged to the Pacific Ocean. Additionally, SMMWC would have limited control over future treatment costs, as rates are set by Pismo Beach. Draft Avila Valley Region Wastewater Alternatives Analysis San Miguelito Mutual Water Company I ES-5 - cany à WSC Executive Summary Avila Beach CSD Alternative The ABCSD WWTP is the closest treatment facility to SMMWC's collection system, requiring the shortest conveyance distance. However, the WWTP would need to be expanded to accept additional flows from SMMWC and/or CSA-12 private septic users. Conveyance Options Two conveyance options were considered for sending flows to the ABCSD WWTP. Option 1 includes 1,750 feet of new 6-inch force main installed along Avila Beach Drive diverted downstream of Lift Station 2. The force main would cross the SLO creek via an existing road bridge with an available utility passageway. There is also opportunity to share a portion of the force main with the Port San Luis Harbor District, who owns a force main along the same alignment conveying flow to the ABCSD WWTP. Option 2 reverses flow in a private lift station at the San Luis Bay Inn and SMMWC's Lift Station 2 and includes 1,520 feet of new 6-inch force main. This option requires the force main to be installed on a pedestrian bridge along the Bob Jones Trail to connect to the ABCSD WWTP, which is more susceptible to damage during floods. Option 2 will also be more difficult to construct because it requires reversing flows in the collection system. Both options have a similar capital cost. Due to the high risks associated with option 2, only option 1 was carried forward. ABCSD WWTP Expansion The ABCSD WWTP would need to be expanded to accept additional flows. Two flow scenarios were considered for the expansion: Scenario 1: Average daily flow up to 183,000 gallons per day to account for buildout flows for ABCSD, Port San Luis Harbor District (currently treated at the ABCSD WWTP), and SMMWC, including private septic users currently served water by Avila Valley Mutual Water Company. Scenario 2: Average daily flow up to 217,600 gallons per day to account for buildout flows in scenario 1, plus flows from additional CSA-12 private septic users in the Avila Valley. The ABCSD WWTP current and proposed process flow diagram is shown in Figure ES-3. The expansion includes treatment process improvements, ancillary equipment improvements, and other site improvements, described below. Additionally, the ABCSD WWTP site has space constraints that will likely impact neighboring landowners, poor soils that require ground improvements for construction, and is within the Federal Emergency Management Agency (FEMA) 100-year floodplain and will require flood walls for protection. These site conditions have been incorporated into the WWTP expansion concept and costs. Draft Avila Valley Region Wastewater Alternatives Analysis San Miguelito Mutual Water Company I ES-7 2000-2901 WVOVIG MOTE ss300ud #8W dIMM HOVES VTIAV E-SE EHnoH WSC Executive Summary Treatment Capacity Expansion The ABCSD WWTP expansion would require a new headworks, Membrane Bioreactor (MBR), ultraviolet (UV) disinfection, and sludge handling system. The ABCSD WWTP currently does not have a headworks, which is required for solids removal prior to MBR treatment. The ABCSD WWTP uses primary clarification to settle out solids prior to treatment at this time, which is recommended to be retrofitted for other use and a headworks constructed. Screened flows from the headworks would flow to the MBR system, which provides secondary biological and tertiary filtration treatment. The WWTP has an existing Cloacina M50 packaged MBR with an average daily flow capacity of 25,000 gpd that is proposed to remain for backup capacity. The expanded WWTP will require a new MBR system to treat the higher flows. For this conceptual analysis, a new, larger Cloacina MEMPAC-M3 (Flow Scenario 1) or M4 MBR system (Flow Scenario 2) was used in planning efforts for manufacturer consistency with the WWTP's existing MBR. It is also recommended that the chlorine contact chamber is replaced with a UV disinfection system. The chlorine contact chamber would need to be modified to achieve the required disinfection at the higher flows, and has a higher risk compared to UV disinfection. Lastly, a sludge press is also proposed to handle the increased sludge production. Ancillary Improvements Ancillary improvements needed to support the new equipment and treatment capacity include electrical upgrades, equalization and sludge storage, and pump stations. The three major electrical upgrades foreseen include a new primary PG&E service, retrofit of the main switchboard, and upsizing of the emergency standby generator. Additional equalization and sludge storage is recommended for the plant expansion. It is proposed to retrofit the existing digester into influent flow equalization to add approximately 150,000 gallons of additional equalization and retrofit the existing primary clarifier for up to 40,000 gallons of sludge storage. A new influent and effluent pump station is proposed. The existing influent pump station is not sized to handle the larger flow for this alternative and should be replaced. A new effluent pump station will pump the reclaimed water to lined ponds at Avila Beach Golf Course for reuse. Conceptual WWTP Expansion Alternatives Three conceptual layouts were developed for this alternative, shown in Figure ES- 4 through Figure ES- 6. The first layout depicts a concept for Flow Scenario 1 including a Cloacina M3 MBR Package. The second and third layouts include the larger Cloacina M4 MBR sized for Flow Scenario 2. Layout 1 and 2 are generally the same with the exception of the MBR footprint. Layout 2 and 3 are similar, but Layout 3 is designed to minimally expand the WWTP footprint by siting the MBR where the secondary treatment structure is currently located. Draft Avila Valley Region Wastewater Alternatives Analysis San Miguelito Mutual Water Company ES-9 #8W EWI -L gnoke7 uoisuedxa dIMM eIAy -SE Eunols aso yoeas eIay - ST MIGUEL SAN ) - M e A a o uoisuedxs Haw WWI -Z jnoken uojsuedxg dIMM elAy S-SE Eunoi aso yoeas eIAy ST MIGUEL SAN a 6 do d 5 M A U & o o guewaseday #aW VWI -E anokey uojsuedxs dIMM eAy 9-SE3 aunoH - & aso yoeag eIAV ST MIGUEL SAN - 3 E e C 3 WSC Executive Summary The capital costs for each layout are presented in Table ES-2. Expanding the capacity from Flow Scenario 1 in layout 1 to Flow Scenario 2 in layout 2 results in about a 10% capital cost increase. Layout 3 is the most expensive due to additional demolition and temporary facilities costs. Table ES-2: ABCSD Alternative Capital Costs Layout Option Capital Costs Layout 1: M3 MBR $19. 1 million Layout 2: M4 MBR Expansion $21.2 million Layout 3: M4 MBR Replacement $25.0 million Note: See Appendix A for a detailed opinion of probable costs. Private Septic Users Consolidation Consolidation of private septic users located in CSA-12's service area and combined with one of the treatment alternatives above is also analyzed in this study. For the collection system, gravity sewer pipelines are preferred where feasible due to lower operating costs and reliability. A gravity collection system appears feasible for residential users located within Avila Valley Mutual Water Company's service area along Avila Valley Drive. New 8-inch gravity mains could be constructed and connected to SMMWC's collection area to serve these residences. Currently there is no driver for these users to connect to a sewer system, and they would likely remain on septic treatment until mandated due to the degradation of groundwater quality or other reasons. For commercial and residential users along Avila Beach Drive and Ontario Road, it appears that a gravity collection system is not feasible due to the topography. Instead, these users could be consolidated using a pumped system. Each connection would need an individual grinder pump to pump into a common force main that conveys flow to a centralized lift station. The centralized lift station is proposed to be located near the intersection of Avila Beach Drive and Ontario Road. Figure ES-7 shows the conceptual collection system for the private septic users in the Avila Valley. The collection system to serve these users is expected to be phased overtime. Large users located adjacent to the new lift station could be connected first (Segment A in Figure ES-7). New development along Ontario Road will likely drive the construction of the force main north of the lift station (Segment B in Figure ES-7). Sycamore Mineral Springs is the largest users along Avila Beach Drive, and should consider connecting the remainder of their buildings on septic to their existing force main that pumps flows to SMMWC before constructing a new force main along Avila Beach Drive (Segment Cin Figure ES-7). Draft Avila Valley Region Wastewater Alternatives Analysis San Miguelito Mutual Water Company ES-13 8 a sueubes us wuebes / 8-in WSC Executive Summary Figure ES-8 shows the proposed force main alignments to connect to each treatment alternative. The estimated costs for the new lift station and forcemain for each alternative is shown in Table ES-3. As shown, it is most cost effective for septic users to combine with SMMWC in the City of SLO and City of Pismo Beach alternatives. However, if SMMWC were to pursue the ABCSD alternative, it would be more cost effective for the septic users to combine with the City of Pismo Beach instead of combining with SMMWC for treatment at the ABCSD WWTP. Community buy-in and grant funding are critical for the consolidation of septic users to as sewer system. Table ES-3: Private Septic User Alternative Costs Alternative Lift Station and Force Main Capital Costs Conveyance to SLO with SMMWC $2.5 million + costs to send SMMWC flows to SLO Flows Conveyance to Pismo Beach with $1.7 million + costs to send SMMWC flows to Pismo SMMWC Flows $3.9 million to send to Pismo Beach without flows Conveyance to Pismo Beach from SMMWC Conveyance to SMMWC Lift $5.7 million, including costs to upgrade SMMWC Lift Station #1/ ABCSD WWTP Station #1 to support the additional flows Note: Collection system costs upstream of the lift station are excluded here because these costs are anticipated to be phased as users connect. The excluded costs are presented in Table 3-13. Draft Avila Valley Region Wastewater Alternatives Analysis San Miguelito Mutual Water Company ES-15 0 0 Pg ejuow of e 3 - - d Arsan / & PH buipue WSC Executive Summary Summary of Alternatives Table ES-4 and Table ES- 5 presents the capital cost, operations and maintenance (0&M) cost, and net present value cost over a 30-year life cycle without and including CSA-12 private septic users. The Pismo Beach Alternative has the lowest capital costs, followed by the ABCSD Alternative and the SLO Alternative, both with and without private septic users. The life cycle costs for the Pismo Beach and ABCSD alternatives are similar. The City of SLO alternative has the highest life cycle costs. Table ES-4: Summary of Alternative Costs without CSA-12 Private Septic Users Net Present Annual O&M Alternative Capital Cost Value over a 30- Cost year Lifecycle Option 1 & 2 $23,404,000 $664,800 $45,196,000 SLO Option 3 $31,715,000 $675,800 $56,215,000 Option 1 $16,428,000 $632,200 $34,199,000 Pismo Beach Option 2 $20,640,000 $663,000 $41,590,000 Layout 1 $19,136,000 $394,000 $33,617,000 (M3 Package) Layout 2 ABCSD $21,228,000 $440,000 $37,357,000 (M4 Expansion) Layout 3 (M4 $24,977,000 $440,000 $42,217,000 Replacement) Note: Capital and O&M cost estimates are in 2024 dollars (ENR 20 City. Average Construction Costs Index of 13362 for December 2024). Draft Avila Valley Region Wastewater Alternatives Analysis San Miguelito Mutual Water Company ES-17 WSC Executive Summary Table ES- 5: Summary of Alternative Costs including CSA-12 Private Septic Users Net Present Annual O&M Alternative Capital Cost Value over a 30- Cost year Lifecycle Option 1 & 2 $25,960,000 $939,000 $54,647,000 SLO Option 3 $31,715,000 $951,000 $62,397,000 Option 1 $17,400,000 $911,700 $42,956,000 Pismo Beach Option 2 $20,640,000 $942,700 $47,839,000 Layout 2 $25,257,000 $470,100 $43,248,000 (M4 Expansion) ABCSD Layout 3 (M4 $32,256,000 $470,100 $55,678,000 Replacement) Note: Capital and O&M cost estimates are in 2024 dollars (ENR 20 City Average Construction Costs Index of 13362 for December 2024). Costs exclude the private septic user's gravity system costs, since these are expected to be phased over time as users connect to the sewer system. Costs include the septic users centralized lift station and force mains needed to tie into each alternative. Table ES-6 presents a scoring and ranking of each alternative considering costs, supply benefits to SMMWC, technical complexity, and local control over the future of SMMWC's resource. The ABCSD Alternatives scores best, followed by the Pismo Beach Alternative. Table ES-6: Alternatives Scoring Matrix Supply Technical Alternative Costs Local Control Total Benefits Complexity SLO 1 2 1 1 5 Pismo Beach 3 1 3 1 8 ABCSD 2 3 1 3 9 Scoring Criteria: 3= Good, 2= Moderate, 1= Poor. Higher scoring is preferred. Next Steps & Recommendations Due to cost and the alternatives scoring, it is recommended SMMWC continue to investigate the ABCSD Alternative. Since SMMWC and ABCSD do not have a formal commitment to this project, it is recommended to keep the Pismo Beach Alternative as a backup alternative. We are not recommending carrying forward the City of San Luis Obispo Alternative due to higher costs and technical complexity. Additionally, SMMWC should evaluate an alternative ABCSD WWTP concept that includes relocating the WWTP. The current ABCSD WWTP has numerous site conditions and Draft Avila Valley Region Wastewater Alternatives Analysis San Miguelito Mutual Water Company I - ES-18 WSC Executive Summary constraints that increase the estimated cost. SMMWC has identified a potential alternative location for a WWTP located along Avila Beach Drive just south of Cave Landing Road that is larger than the ABCSD WWTP site. A relocated WWTP in Avila Beach could have a lower risk and capital cost compared to expanding the existing ABCSD WWTP due to its site constraints and should be considered. Additionally, SMMWC and ABCSD should work together to draft and sign a Memorandum of Understanding that outlines the intentions of both parties to collaborate, the scope of the project, and the roles of each organization. SMMWC should also continue to engage with the City of Pismo Beach as an alternative project. We recommend that SMMWC request a 5-year Time Schedule Order in their Time Schedule Compliance Plan to the Central Coast Regional Water Quality Control Boad to allow adequate time for additional planning, negotiations with the regional stakeholders, securing funding and financing for the project, and completing design, environmental permitting, and construction. Draft Avila Valley Region Wastewater Alternatives Analysis San Miguelito Mutual Water Company ES-19