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Notice of Meeting STATE WATER SUBCONTRACTORS ADVISORY COMMITTEE SAN LUIS OBISPO COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT Friday, May 6, 2022 – 10:00 to 11:30 AM County Government Center, Rm. D361 1055 Monterey Street, San Luis Obispo, CA 93408 For agenda packet attachments and more information: https://www.slocounty.ca.gov/Departments/Public- Works/Committees-Programs/State-Water-Project-and-Subcontractors-Advisory-Co.aspx
Chair: Ben Fine (Pismo Beach) Vice Chair: Brad Hagemann (Avila Beach CSD)
AGENDA
Attachments
CONTACT: Please contact SWSAC Secretary, Wes Thomson, with any questions: [email protected] or (805) 781-5252.
 All Americans with Disabilities Act (ADA) accommodations shall be promptly reviewed and resolved. Persons who require accommodations for any audio, visual or other disability to review an agenda, or to participate in the meeting per the ADA, are encouraged to request such accommodation 48 hours in advance of the meeting.
County Gov’t Center, Rm. D361 w/Hybrid Web-conference Option Friday, March 4, 2022
MINUTES (DRAFT) STATE WATER SUBCONTRACTORS ADVISORY COMMITTEE
Chairperson: Ben Fine Vice Chairperson: Brad Hagemann (absent) Secretary: Wes Thomson
The following action minutes are listed as they were acted upon by the State Water Subcontractors Advisory Committee (SWSAC) and as listed on the Regular Meeting agenda for March 4, 2022, together with staff reports and related documents attached thereto and incorporated therein by reference.
Call to order at approx. 10:00 AM; a quorum was established. B. Fine serving as chair.
B. Fine announced that The City of Pismo Beach Council approved the MOA for Central Coast Blue, and WSC is contracted for the project’s program management and design.
Committee approved January 7th meeting minutes with minor update to correctly identify member Michael Fitzpatrick on agenda items IV.F and VI.A.
Kate Ballantyne presented an “emergency water concept” that District staff will to the County Board during the upcoming drought update on March 15th. The transfer opportunity would consist of a water transfer to CCWA, providing them with 1,000 AF of the District’s unsubscribed water, currently stored at SLR. In exchange, CCWA would treat and deliver an additional 1,000 AF of water for the District. This transfer is being pursued as a drought mitigation strategy that will bring water into the County from other sources. There would be no financial exchange required to make the transaction, and the idea is that the water could be made available to the subcontractors or others within the County. M. Fitzpatrick asked for clarification on the benefits to CMC from this exchange. K. Ballantyne clarified that this is an opportunity for the District’s unallocated supply to be put to good use within the County in addition to fulfilling its regular delivery commitments to the subcontractors. This strategy
would allow the District to be better positioned to respond in an emergency. W. Clemens expressed his support in that this opportunity allows for more water to be taken out of SLR and used to address local needs or help agencies reduce demand on local sources. M. Fitzpatrick clarified that the water would be treated and not able to be sent to Lopez. K. Ballantyne added clarification to note that the agency that receives the water would be responsible for costs of treatment and delivery. Jeff Edwards from the public commented that there should be more than just an emergency or short-term agreement negotiated transfer since there is additional capacity that could be used to support increased deliveries to the County.
W. Thomson gave an update on drought buffer options. Drought buffer is used to secure availability of supply for local delivery contracts. Current costs are about $175/AF, which is basically covers the cost that the District pays for the unsubscribed allocation. Drought buffer contracts can be amended (increased or decreased), and they serve to secure additional supply for a subcontractor which in turn helps to address the inherent uncertainty of the SWP’s annual new water supply allocation that varies year to year. Pismo Beach mentioned their possible interest in requesting an increase in drought buffer for a term. It was clarified that a change in drought buffer requires a contract amendment and that those can be requested at any time. The cost of the drought buffer is included in the annual billings to the subcontractors, and any Delta Conveyance Project capital costs would impact the drought buffer cost. M. Fitzpatrick mentioned the concern of over committing water. W. Thomson expressed the ability to discuss this topic further offline, or at the next SWSAC meeting. As a public comment, J. Edwards supported the request of additional drought buffer by subcontractors rather than using other more costly options. K. Ballantyne confirmed that the subcontractors have the first right of refusal for the District’s unallocated water.
W. Thomson gave a brief update, noting that the District is continuing discussions with CCWA and the consultant team that supported the WMT Study to explore opportunity for a “phase two” of the WMT study.
W. Thomson reported that the draft EIR is on track to be released to the public by mid-June. Currently the project is in year 2 of 4 of the planning/design/environmental review.
Please contact W. Thomson is your agency would like to make any updates to committee membership; updates require about 7-8 weeks minimum to get to the Board.
SWAC Regular Meeting – May 6, 2022, at 10:00 AM. Meeting adjourned at approximately 11:02 AM.
STATE WATER PROJECT
TO: State Water Subcontractors Advisory Committee FROM: Wes Thomson, Utilities Division Engineer DATE: May 6, 2022 SUBJECT: SWP Water Supply Report
SWP DELIVERY REPORT Attachment 1 is the monthly summary of State Water Project (SWP) deliveries through March 2022 for the 2022 SWP “Water Year” (Jan 1, 2022 – Dec 31, 2022).
2022 SCHEDULED DELIVERIES VS. STORED WATER SUMMARY Attachment 2 summarizes the current 2022 delivery schedule for District Subcontractors and reports the new supply for 2022 based on DWR’s 5% “Table A” water allocation and shows the estimated stored carryover water needed by the Subcontractors to meet requested deliveries for April through December 2022. This delivery schedule and storage analysis assumes that the 5% “Table A” allocation will hold for the remainder of the year. Note that this is the third year of drought conditions, and most of the Subcontractors have exhausted their stored water (numbers in red), and those that have not, are on track to use up most of their stored water by the end of the year (numbers highlighted in yellow).
Executive Order N-7-22 Attachment 3 is Governor Newsom’s recent executive order (issued on 3/28/22), in response to a record January/February/March dry period. The order requires urban water suppliers to increase drought response and conservation, mandating a move to Level 2 of their Water Shortage Contingency Plans (Level 2 corresponds to the 10-20% supply shortage, so agency response actions would be aligned to achieve a 20% demand reduction).
An “urban water supplier” is defined in the California Water Code to be one that either provides over 3,000 acre-feet of water annually or serves more than 3,000 urban connections.
For more guidance on Water Shortage Contingency Plans (WSCP) under California’s Urban Water Management Plan framework: https://water.ca.gov/Programs/Water-Use-And- Efficiency/Urban-Water-Use-Efficiency/Urban-Water-Management-Plans
For many of the Subcontractors, this mandate does not directly apply, but note that SLO County has declared a drought emergency which has been in effect since July 2021. See this website for more info: https://www.emergencyslo.org/en/slo-county-drought-information.aspx
SAN LUIS OBISPO COUNTY FLOOD CONTROL & WATER CONSERVATION DISTRICT STATE WATER PROJECT
ATTACHMENTS
2022 STATE WATER DELIVERIES (DRAFT) -- For deliveries thru March 2022 --
Note: 1. Deliveries based on CCWA monthly delivery reporting and subcontractor request. 2. All delivery values reported are in volumetric units of acre-feet (AF).
2022 STATE WATER REQUESTS
Note: Assumes District can supply 100% of requested delivery, to meet requests that exceed current DWR allocation*. *Current DWR "Table A" allocation = 5%
STATE WATER PROJECT San Luis Obispo County Flood Control and Water Conservation District P:\State Water\Water Ops\_DELIVERY\_ACTUALS\2022\_Subcon Reports\220419-Deliveries thru Mar 2022_DRAFT
Prepared by WT, 4/19/2022
CONTRACTS SUMMARY 2022 DELIVERY SCHEDULE SUMMARY1
Buffer (DB)
WATER (1/1/2022)
AT 5% (THRU MAR
NOTES District's "Table A" Allocation (AFY) 25,000 Total "Table A" Subcontracted (AFY) 10,537 42% "Unsubscribed" Allocation (AFY) 14,463 58%
STATE WATER PROJECT / San Luis Obispo County Flood Control and Water Conservation District P:\State Water\Water Ops\_DELIVERY\_ACTUALS\2022\_Subcon Reports\220502 Report on Stored v 2022\2022 SWP Scheduled v Storage-220502
EXECUTIVE DEPARTMENT STATE OF CALIFORNIA
EXECUTIVE ORDER N-7-22
WHEREAS on April 12, 202l, May l 0, 202l, July 8, 202l, and October 19, 2021, I proclaimed states of emergency that continue today and exist across all the counties of California, due to extreme and expanding drought conditions; and
WHEREAS climate change continues to intensify the impacts of droughts on our communities, environment, and economy, and California is in a third consecutive year of dry conditions, resulting in continuing drought in all parts of the State; and
WHEREAS the 21st century to date has been characterized by record warmth and predominantly dry conditions, and the 2021 meteorological summer in California and the rest of the western United States was the hottest on record; and
WHEREAS since my October 19, 2021 Proclamation, early rains in October and December 2021 gave way to the driest January and February in recorded history for the watersheds that provide much of California's water supply; and
WHEREAS the ongoing drought will have significant, immediate impacts on communities with vulnerable water supplies, farms that rely on irrigation to grow food and fiber, and fish and wildlife that rely on stream flows and cool water; and
WHEREAS the two largest reservoirs of the Central Valley Project, which supplies water to farms and communities in the Central Valley and the Santa Clara Valley and provides critical cold-water habitat for salmon and other anadromous fish, have water storage levels that are approximately l. l million acre-feet below last year's low levels on this date; and
WHEREAS the record-breaking dry period in January and February and the absence of significant rains in March have required the Department of Water Resources to reduce anticipated deliveries from the State Water Project to 5 percent of requested supplies; and
WHEREAS delivery of water by bottle or truck is necessary to protect human safety and public health in those places where water supplies are disrupted; and
WHEREAS groundwater use accounts for 41 percent of the State's total water supply on an average annual basis but as much as 58 percent in a critically dry year, and approximately 85 percent of public water systems rely on groundwater as their primary supply; and
WHEREAS coordination between local entities that approve permits for new groundwater wells and local groundwater sustainability agencies is important to achieving sustainable levels of groundwater in critically overdrafted basins; and
WHEREAS the duration of the drought, especially following a multiyear drought that abated only five years ago, underscores the need for California to redouble near-, medium-, and long-term efforts to adapt its water management and delivery systems to a changing climate, shifting precipitation patterns, and water scarcity; and
WHEREAS the most consequential, immediate action Californians can take to extend available supplies is to voluntarily reduce their water use by 15 percent from their 2020 levels by implementing the commonsense measures identified in operative paragraph 1 of Executive Order N-10-21 (July 8, 2021); and
WHEREAS to protect public health and safety, it is critical the State take certain immediate actions without undue delay to prepare for and mitigate the effects of the drought conditions, and under Government Code section 8571, I find that strict compliance with various statutes and regulations specified in this Proclamation would prevent, hinder, or delay the mitigation of the effects of the drought conditions.
NOW, THEREFORE, I, GAVIN NEWSOM, Governor of the State of California, in accordance with the authority vested in me by the State Constitution and statutes, including the California Emergency Services Act, and in particular, Government Code sections 8567, 8571, and 8627, do hereby issue the following Order to become effective immediately:
IT IS HEREBY ORDERED THAT:
July 8, 2021, and October 19, 2021 Proclamations remain in full force and effect, except as modified by those Proclamations and herein. State agencies shall continue to implement all directions from those Proclamations and accelerate implementation where feasible.
supply and demand assessment to the Department of Water Resources no later than the deadline set by section 10632.1 of the Water Code;
To further conserve water and improve drought resiliency if the drought lasts beyond this year, I encourage urban water suppliers to conserve more than required by the emergency regulations described in this paragraph and to voluntarily activate more stringent local requirements based on a shortage level of up to thirty percent (Level 3).
protecting public health and the environment. The entities implementing these directives or conducting activities under this suspension shall maintain on their websites a list of all activities or approvals for which these provisions are suspended.
Agency and would not decrease the likelihood of achieving a sustainability goal for the basin covered by such a plan; or
(2) not likely to cause subsidence that would adversely impact or damage nearby infrastructure.
This paragraph shall not apply to permits for wells that will provide less than two acre-feet per year of groundwater for individual domestic users, or that will exclusively provide groundwater to public water supply systems as defined in section 116275 of the Health and Safety Code.
implementation of the directives concurs that local action is required, and (c) permits necessary to carry out actions under (a) or (b). The entities implementing these directives shall maintain on their websites a list of all activities or approvals for which these provisions are suspended.
Groundwater Management Grant Program occurring on open and working lands to replenish and store water in groundwater basins that will help mitigate groundwater conditions impacted by drought, for any (a) actions taken by state agencies, (b) actions taken by a local agency where the Department of Water Resources concurs that local action is required, and (c) permits necessary to carry out actions under (a) or (b), Public Resources Code, Division 13 (commencing with section 21000) and regulations adopted pursuant to that Division are hereby suspended to the extent necessary to address the impacts of the drought. The entities implementing these directives shall maintain on their websites a list of all activities or approvals for which these provisions are suspended.
IT IS FURTHER ORDERED that as soon as hereafter possible, this Order be filed in the Office of the Secretary of State and that widespread publicity and notice be given of this Order.
This Order is not intended to, and does not, create any rights or benefits, substantive or procedural, enforceable at law or in equity, against the State of California, its agencies, departments, entities, officers, employees, or any other person.
IN WITNESS WHEREOF I have hereunto set my hand and caused the Great Seal of the State of California to be affixed this 28th day of March 2022.
  J '
GAVIN NEWSOM Governor of California
ATTEST:
SHIRLEY N. WEBER, PH.D. Secretary of State
STATE WATER PROJECT
TO: State Water Subcontractors Advisory Committee FROM: Wes Thomson, Utilities Division Engineer DATE: May 6, 2022 SUBJECT: District Subcontracts and Unsubscribed Allocation
DISTRICT SUBCONTRACTS The District is continuing to look for ways to maximize its SWP water supply contract to benefit SLO County, and to reduce (or even largely eliminate) the financial burden carried by the local taxpayers for the cost to hold onto the unsubscribed allocation – i.e., the 14,463 AF of the District’s 25,000 AF Table A contract, which represents a maximum annual amount that may be made available to the District in a given year, as defined in the District’s master contract with DWR.
Specifically, we will discuss Articles 14(d) and 32 of the District subcontracts, which speak to “Additional Deliveries” for Subcontractors and establish what is informally known as the “like contract” clause – requiring the subcontracts to be substantially similar overall but allowing for some variation.
Article 14(d) of the SWP subcontracts says the following in regard to “Additional Deliveries” – “In the event that the Contractor requests the delivery during any year of Project Water in addition to the quantities set forth in Article 6 hereof and to the extent that other Contractors have requested less than their total annual water allocations, District may provide such requested additional Project Water to the Contractor. For such additional Project Water…”
Article 32 of the District SWP subcontracts that requires District contracts with others to be “substantially similar,” but allows for differences “primarily with respect to quantities and payment amounts….”
Attachment 1 is a copy of SLO County’s subcontract for SWP water with the District, provided as an example contract to reference for discussion with the Subcontractors.
SAN LUIS OBISPO COUNTY FLOOD CONTROL & WATER CONSERVATION DISTRICT STATE WATER PROJECT
ATTACHMENTS 1. 1992 SWP Water Supply Agreement for SLO County.
WATER SUPPLY AGREEMENT BETWEEN SAN LUIS OBISPO COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT AND COUNTY OF SAN LUIS OBISPO (County Operations Center nd El Chorro Regional Park) This agreement. made this i 6 ,hday of O..t , JC) D... by and between the San Luis Obispo County F1ooat""ontrol and Water nservaifor:"ti"'strict, hereinafter referred to as 0Oistrict11, and the County of S n Luis Obispo, (County Operations Center and El Chorro Regional Park) a subdivision of the State of California. hereinafter referred to as the "Contractor11• WITNESSETH: WHEREAS. the District and the State of California, on February 26. 1963, entered into an agreement entitled 11Water Supply Contract Between the State of California Department of Water Resources and San Luis Obispo County Flood Control and Water Conservation District.0 which agreement has been amended from time to time. whereby the State of California will furnish a water supply to the District; and WHEREAS. the lands and/or inhabitants of the Contractor are in need of additional water for municipal use and other beneficial uses; and WHEREAS, because certain communities within the County of San Luis Obispo who desire to contract with the District for a water supply are now subject to water resource constraints and could, on receipt of said water supply, experience an increased rate of population growth. and. because certain of said communities are presently overdrafting their groundwater basins, this agreement requires that the governing body of each water purveyor accepting SWP water shall adopt a water management plan or program, the goal of which shall be to demonstrate that its project water shall be used first to offset its proportionate share of groundwater basin overdraft, if any, and to improve water quality for its consumers. if appropriate, and to provide an appropriate reserve available for a period of reduced water supply before being made available for other purposes. Such commitment may be manifested by the adoption of an ordinance or by the adoption of a resolution or by the adoption of a water management plan or program which brings its proportionate share of groundwater supply and demand into balance; and WHEREAS, the Contractor desires to contract with the District for a water supply to be for the use and benefit of the inhabitants and 1ands of the Contractor and for which the Contractor will make payment to the District upon the tenns and conditions hereinafter set forth; WHEREAS. the District desires to make water available to Contractor. and others, under tenns and conditions which are fair and equitable to all such entities and persons and consistent with the said "Water Supply Contract Between the State of California Department of Water Resources and San Luis Obispo County Flood Control and Water Conservation Oistrict.11
NOW. THEREFORE, IT IS HEREBY MUTUALLY AGREED by District and Contractor as follows: Artjcle 1. Definitions.
{c) •District's Entitlement Water• shall mean that part of the Project Water set forth in Table •A• of the Master Contract for San Luis Obispo County Flood Control and Water Conservation District. {d) •District's Surplus Water• shall mean that Project Water made available to District pursuant to the provisions of Articles 21 and 46 of the Master Contract. ( e) •contractor's Water Service Amount• sha11 mean that amount of District's Entitlement Water which District shall provide to Contractor during the tenn of this agreement and. specifically, in the amounts and at the times set forth in Article 6 and Article 8 of this agreement. {f) •vear• shall have the same meaning as the word •year• in the Master Contract. {g) •vear of initial water delivery• shal1 mean the year when District's Project Water is first available for delivery to the Contractor pursuant to the tenns of this agreement. {h) •Municipal use• shall mean all those uses of water usual to the municipal water supply of a city. town, or other similar population group. including uses for domestic purposes, uses for the purposes of co11111erce, trade or industry, and any other use incidental thereto for any beneficial purpose. {i) •Repayment Reach• or •reach• shall mean reaches of the California Aqueduct designated by the Department of Water Resources for purposes of repayment of Project Transportation Facilities by District and other water contractors under the Master Contract. (j) •other agency• or •other subcontractor• shall mean any other public water distribution agency having the power to do so, which executes a contract with the District for the purchase of a water supply from District's Project Water. {k) •District Administrative Costs• are the labor, equipment, materials and overhead costs of the District which are associated with the service of providing Project Water to Contractor under this agreement and to other agencies under similar agreements.
2
Article 2. Tenn. This agreement shall become effective on the date first above written and shall remain in effect throughout the term provided by Article 2 of the Master Contract; provided, that whenever the Master Contract is terminated or suspended in the manner and for a cause specified in the Master Contract, this contract shall also be tenninated or suspended. Article 3. Option for Continued Service. By written notice delivered to District at least nine (9) months prior to the expiration of the tenn of this agreement, Contractor may elect to receive continued service after expiration of said term and under the conditions set forth in Article 4.of the Master Contract. Article 4. Relationship to Master Contract, Contractor acknowledges and agrees that this agreement is subject to the obligations and limitations imposed on District by the Master Contract and all existi_ng and future amendments to the Master Contract and is intended to be in conformance and hannony with it. The Contractor hereby expressly agrees to the provisions of the Master Contract and all existing and future amendments thereto and further expressly agrees that nothing in this agreement shall be deemed to require the District to perform an obligation in conflict with the Master Contract. Contractor further agrees that District's -rights to enter into amendments to the Master Contract is not, and sha11 not be restricted or impaired, in any way, by this agreement. Artic1e 5. Service Agreement. · Parties agree that this is an agreement for service, and only contractual rights are created by this agreement, and that it does not create an entitlement to, nor does it convey to the Contractor any property right or interest in District's Project Water. Article 6. Contractor's Water Service Amount and Use of Project Water. {a) Contractor's Water Service Amount Commencing with the year that District first makes Project Water available for delivery to Contractor under this agreement, and subject to the shortage provisions of Article 10 of this agreement, District each year shall make available for delivery to the Contractor JJ.z,.-( acre feet of Project Water which amount is referred to in this agreement as'iliecontractor's Water Service Amount.
(b) Use of Project Water Contractor shall adopt a water management plan or program, which shall demonstrate that its project water shall be used first to offset its proportionate share of groundwater basin overdraft, if any, and to improve water quality for its consumers, if appropriate, and to provide an appropriate reserve available for a period of reduced water supply before being made available for other purposes. Such co11111i tment shall be manifested by the adoption of an ordinance or by the adoption of a resolution or by the adoption of a water management plan or program which brings its proportionate share of groundwater supply and demand into balance. Article 7. Measuring Devices; Treatment Facilities.
The District shall be responsible for the measuring of the amounts of all Project Water delivered to the Contractor and shall keep or cause to be kept accurate records thereof. For this purpose, the District sha11 i nsta11, operate, and maintain at all turnouts for delivery of Project Water to the Contractor such measuring devices and equipment as are satisfactory and acceptable to both District and Contractor, except that where measuring devices and equipment to be installed, operated and maintained by the State of California pursuant to the Master Contract wi11 be sufficient for the measurement of Project Water de1i vered to the Contractor. the District need not duplicate such facilities and the parties hereto agree to accept the measurements and records of the State of California in such cases. Any measuring devices and equipment installed, operated and maintained by the District shall be examined, tested and serviced regularly to insure their accuracy. At any time or times, the Contractor or any other subcontractor may inspect such measuring devices installed, operated and maintained by the District and the measurements and records taken therefrom. Contractor shall pay to District all of the costs incurred by District for those said measuring devices reasonably necessary for measuring the delivery of Project Water to Contractor
The treatment of project water supplied to Contractor hereunder shall be accomplished by the Central Coast Water Authority and pursuant to and in accordance with the provisions of that certain agreement between the District and Contractor which agreement is entitled NWater Treatment and Local Facilities Agreement.H Upon notice to the District by the Central Coast Water Authority that Contractor has failed to make any payment, which failure the Central Coast Water Authority certifies constitutes a default under the said •water Treatment and Local Facilities Agreement•, the District shall discontinue water service and the delivery of project water to·contractor hereunder and District shall not reco11111ence water service or the delivery of project water to the Contractor until the Central Coast Water Authority gives written notice to District that such default has been cured.
Article 8. Location and Rate of Delivery of Contractor's Water Service Amount. Contractor's Water Service Amount shall be made available for delivery to the Contractor at the locations and rates hereinafter specified:
location: Reach No .•.=3..3-A=...!.----'---------------- Maximum i_nstantaneous flow capacity: 0./J,O cubic feet per second
{c) Procedure for Determining Water Delivery Schedule. The amounts, times, and rates of delivery of Contractor's Water Service Amount to the Contractor during any year shall be in accordance with a District water delivery schedule for that year. with such schedule to be determined in the following manner: ·
8.333 percent of the Contractor's Water Service Amount for that year, whichever is the lesser. On or before December 15 of each year, after the District has been furnished a water delivery schedule from the State of California, pursuant to the terms of Article 12 of the Master Contract, the District shall determine and furnish to the Contractor a water deli very schedu1e for the next succeeding year which shall show the amounts of Project Water to be delivered to the Contractor during each month of that year.
5 ..
While District is not required to deliver to the Contractor in any one month of any year a total amount of Project Water greater than eight and one third percent (8.333%) of the Contractor's Water Service Amount for that year; however, in the event deliveries required to be made by the District to other agencies permit a higher monthly rate of delivery to the Contractor without the District exceeding the limitations imposed on the District by the State of California in the Master Contract, then the District shall have the discretion to temporarily exceed the maximum monthly deliveries provided for herein.
In no event shall the District be obligated to deliver water to the Contractor through all delivery structures at a total combined instantaneous rate of flow exceeding O,foO cubic feet per second. Article 9. Limitations on Obligation of District to Furnish Water.
Article 10. Water Shortages
There may occur from time to time a shortage or shortages in the quantity of Project Water available to the District pursuant to the Master Contract and for furnishing to the Contractor pursuant to this agreement. In any such event no li abi1i ty sha11 accrue against the District or any of its respective officers. agents or employees for any damage, direct or indirect, arising from such shortage or shortages.
In any year in which there may occur a shortage, due to any cause, in the supply of Project Water available to the District with the result that there is insufficient Project Water available to District for District to provide to Contractor the Contractor's Water Service Amount, then District shall reduce deliveries to each subcontractor in an amount which bears the same proportion to the total amount of such reduction that the subcontractor's Water Service Amount bears to the tota1 of a11 of the Contractor Water Service Amounts of a11 subcontractors for that year, all as detennined by the District; provided, that the District may apportion on some other basis if such is required to meet minimum demands of any Contractor(s) for domestic supply. fire protection, or sanitation during the year.
In the event that because of a permanent shortage in the supply of Project Water available for delivery to the District there is an amendment of Table A of the Master Contract with the resu1t that the annua1 supply of District Is Entitlement Water is less than the total of Contractor's Water Service Amount plus the water service amounts of all other Contractors, then Contractor's Water Service Amount and the Water Service Amount of all other subcontractors shall be reduced proportionately by the District to the extent necessary so that the sum of the reduced Contractor's Water Service Amount plus the reduced Water Service Amount of all other subcontractors will then equal such reduced annual supply of District's Entitlement water to be made available to the District by the State of California.
If after any reduction of annual supply of District's Entitlement Water, pursuant to subdivision (c) of this Article, there is an amendment to Table A of the Master Contract which increases the annual supply of District's Entitlement Water, then the District shall, with the consent of the Contractor and to the extent possible, increase the previously reduced Contractor's Water Service Amount, in proportion to the water service amounts of all other subcontractors,
The District shall give the Contractor written notice, as far in advance as District reasonably may, of anr reduction in deliveries to Contractor under subdivision (b) or subdivision (c} of this Article. Article 11. Curtailment of Delivery for Maintenance Purposes. The State of California or the District may temporarily discontinue or reduce the amount of Project Water to be furnished to the Contractor during such time as the State or District are maintaining, repairing, replacing, investigating or inspecting, any of the facilities necessary for the furnishing of water to the Contractor. Insofar as it is feasible, the District shall give the Contractor notice in advance of any such temporary discontinuance or reduction, except in the case of emergency, in which case no notice need be given. In the event of such discontinuance or reduction, the District will upon resumption of service, deliver, as nearly as may be feasible, and to the extent water is furnished to it by the State of California, the quantity of Project Water which would have been furnished to the Contractor in the absence of such discontinuance or reduction. Article 12. Responsibilities for Delivery and Distribution of Water. Neither the District nor its officers, agents or employees shall be liable for the control, carriage, handling, use, disposal, or distribution of Project Water supplied to the Contractor after such water has passed into the Contractor's delivery structures, nor for claim of damages of any nature whatsoever, including but not limited to property damage, personal injury or death, arising out of or connected with the control, carriage, handling, use, disposal or distribution of such water beyond said delivery structure; and the Contractor shall defend, indemnify and hold hannless _the District and its officers, agents and employees from and against any such damages or claims of damages. Article 13. Quality of Pro.iect Water Delivered. Contractor acknowledges and agrees that inasmuch as District will neither operate nor control the sources, delivery facilities, or the water treatment facilities for the Project Water, the District shall not be responsible for the quality of the Project Water furnished to Contractor pursuant to this agreement. Article 14. Payment for Water Service.
In addition to the other payments to District by Contractor provided for herein. the Contractor shall pay to District each year during the term of this agreement a sum which shall consist of the total of the following, and which is referred to herein as Contractor's Annual Obligation:
The Contractor shall reimburse District for a portion of the District's annual Delta Water Charge, as defined in the Master Contract. Contractor's reimbursement amount shall be the product of the Delta Water rate for the respective year times the amount of the Contractor's Water Service Amount specified in Article 6.
The Contractor shall reimburse District for a portion of the District's annual Transportation Capital Charge, as defined in -the Master Contract. for each repayment reach in which the Contractor has been provided capacity by the District, as detennined by the District. The Contractor's percentage reimbursement shares of the District's Transportation Capital Charge, by repayment reach, are as follows:
Repayment Reach 1 through 33A 34 35 Contractor' Reimbursement Share(%)
1).,1)1),£ /1114 BIi A' 71t-e, Ojf St.O b,t)o-/'D °"4 '["
OMP&R) Reimbursement. /41YflC.- a The Contractor shall reimburse District for a portion of the District's annual Transportation Minimum OMP&R Charge (Minimum OMP&R), as defined in the Master Contract, for each repayment reach in which the Contractor has been provided capacity, as detennined by the District. The Contractor's percentage reimbursement shares of the District's Minimum OMP&R Charge, by repayment reach, are as follows:
Repayment Reach 1 through 33A 34 Contractor's Reimbursement Share(%} ,£............ -0 --- ed-{f;
35 _ .!)()-,=-0----" ---1> _ _..,4/4!/;b5:
The Contractor shall reimburse District for a /,e.y7lo · portion of the District's Variable OMP&R charge, as defined in the Master Contract. which shall be the product of the acre-feet of Project Water scheduled to be delivered during the respective year to the Contractor from or through said reach multiplied by the District's estimate of the charge per acre-foot to be made by the State to the District for said year for the Variable OMP&R component of the Transportation Charge applicable to transporting water through said reach.
The Contractor shall reimburse District for its portion of the annua1 Off-Aqueduct Power Facilities charge to be paid by the District to the State, as defined in the Master Contract. Contractor• s reimbursement share shall bear the same proportion to the District's annual Off Aqueduct Power Facilities charge as the estimated electrical energy (kilowatt-hours) required to pump through project transportation facilities the Contractor's Water Allocation for that year, [as submitted pursuant to Article 8(c)(1) and as may be modified by the District pursuant t Article 8(c)(2)] bears to the total estimated electrical energy (kilowatt-hours) required to pump all such amounts for all Contractors through project transportation faci 1ities for that year. a11 as detenni ned by the District.
The Contractor sha11 pay to the District its proportionate share as calculated by the District, of the annual Revenue Bond Surcharge to be paid by the District to the State.
The Contractor sha11 reimburse District for a portion of the District's administrative costs
associated with delivery of State Project Water under this agreement. The Contractor's share of the administrative costs shall be based upon the percentage of .the Transportation Capital Cost component that the Contractor pays. This percentage multiplied by the total administrative cost shall be the Contractor's share of the administrative costs.
Comiencing with the year /'{ ,,,,,,_ • the Contractor shall pay to the District, either within 10 days after receipt by it of an annual statement from the District setting forth the Contractor's annual obligation or on January 1 of each year, whichever is later, sixty percent (60%) of its annual obligation. The Contractor shall pay the remainder of such annual obligation on or before July 1 of that year.
At the end of each year the Contractor's annual obligation shall be recalculated by substituting as soon as possible the actual charges made by the State Department of Water Resources to the District for the variable operation, maintenance, power, and replacement components of said Delta Water Charge and Transportation Charge and the Off-Aqueduct Power Faci 1ities charge for the District's estimates of these charges and the actual quantities of water delivered for any scheduled quantities used in calculating he annual obligation pursuant to the provisions of subdivision (a) of this Article. Any adjustment in the Contractor's payments required to reflect this recalculation shall be made in the Contractor's first payment to District due after said recalculation. Interest rates used in the computation of these adjustments shall be the same as those used by the State Department of Water Resources in the adjustments made for the District's obligation for that year. {d) Additional Deliveries. In the event that the Contractor requests the delivery during any year of Project Water in addition to the quantities set forth in Article 6 hereof and to the extent that other Contractors have requested less than their total annual water allocations, District may provide such requested additional Project Water to the Contractor. For such additional Project Water. the Contractor shall pay in advance of the delivery of such additional Project Water an amount to be determined as follows:
Upon reasonable notice to the District that the Contractor will not take all of Contractor's Water Service Amount for any year, the District shall adjust the fayment required by the Contractor for such water as provided in Article 14(c, above. To the extent that deliveries so reduced are delivered to other subcontractors pursuant to Article 14(d) above, the District may reduce the Delta Water Charge to the Contractor in the amount of one-half of the Delta water rate times the amount of water so reduced, as determined by the District; however, Contractor shall otherwise pay to District the Contractor's annual obligation. Article 15. Default; Suspension of Service. In the event of any default by the Contractor in the payment of any money required to be paid to the District hereunder, the District in its discretion may suspend delivery of Project Water during the period when the Contractor is delinquent in its payment for or obligations due to the District under the terms of this agreement; provided, that during any such period of delinquency or suspension the Contractor shall remain obligated to make all payments required under this agreement. Action taken pursuant to this Article shall not deprive the District of or limit any remedy provided by this agreement or by law for the recovery of money due or which may become due under this agreement. Article 16. Interest on Overdue Payments. Upon each charge to be paid by the Contractor to the District pursuant to this agreement which remains unpaid after the same shall have become due and payable, interest shall accrue at an annual rate equal to that earned by the District on its funds invested through the County of San Luis Obispo by the County Treasurer calculated monthly on the amount of such delinquent payment from and after the due date when the same becomes due until paid, and the Contractor hereby agrees to pay such interest; provided, that no interest shall be charged to or be paid by the Agency unless such de1inquency continues for more than (30) days. In addition, Contractor shall reimburse District for all of District's costs, expenses, and personnel costs and other overhead incurred in the collection of any past due payments owed by Contractor to District. Article 17. Obligation of Contractor to Make Payment
The obligation of the Contractor arising out of or pursuant or incidental to this agreement including, without limiting the generality of the foregoing, the obligations of the Contractor to pay to the District the sums becoming due the District for water furnished hereunder, sha11 constitute a genera1 ob1igation of the Contractor and the Contractor shall use all the powers and resources available to it under the law to collect the funds necessary for and to pay its obligations to the District under this contract including levying and collecting all necessary taxes, assessments and charges. The Contractor as a whole is obligated to pay to the District the payments becoming due under this agreement, notwithstanding any fodividual default by its water users, constituents or others
in the payment to the Contractor of assessments, tolls, or other charges levied by the Contractor.
The Contractor's failure or refusal to accept delivery of Project Water under this agreement shall in no way relieve the Contractor of its obligation to make payments to the District except to the extent provided under Article 14 (e) hereof. Article 18. Area Served by Contractor Project Water delivered to the Contractor pursuant to this agreement shall not be sold or otherwise disposed of by the Contractor for use outside the District. Article 19. Remedies not Exclusive. The use by either party of any remedy specified herein for the enforcement of this agreement is not exclusive and shall not deprive the party using such remedy of, or limit the application of, any other remedy provided by law. Article 20. Amendments. This agreement may be amended at any time by mutual agreement of the parties, except insofar as any·proposed amendments are in any way contrary to applicable law or inconsistent with the provisions of the Master Contract. The District shall make available to the Contractor at all times during the nonnal hours of business at the District offices for the Contractor's inspection copies of all agreements now or hereafter executed by the District with all other subcontractors or the State of California and of any amendments thereof. Article 21. Opinions and Detenninations. Where the tenns of this agreement provide for action to be based upon opinion,_judgment, approval, review, or detennination of either party hereto, such tenns are not intended to be and shall never be construed as pennitting such opinion, judgment, approval. review or determination to be arbitrary. capricious, or unreasonable. Article 22. Waiver of Rights. Any waiver at any time by either party hereto of its rights with respect to a default or any other matter arising in connection with this agreement, shall not be deemed to be a waiver with respect to any other default or matter. Article 23. Notices. All notices that are required either expressly or by implication to be given by either party to the other under this agreement shall be signed for the District and for the Contractor by such officers as they may, from time to time, authorize in writing to so act. All such notices shall be deemed to have been
Article 24. Assignment. The provisions of this agreement shall apply to and bind the successors and assigns of the respective parties, but no assignment or transfer of this agreement, or any part hereof or interest herein, shall be valid until and unless approved by the District. Article 25. Contractor to Keep Books. Records and Other Data. The Contractor shall establish and maintain accounts and other books and records sufficient to enable the District to furnish to the State of California reports and statements, to such extent and in such manner and fonn as may be prescribed by the District and the State of California pursuant to the tenns of this agreement and the Master Contract. Reports required to be furnished by the Contractor to the District pursuant to the tenns of this agreement and the Master Contract shall be furnished to the District within the period of time specified therefor. Article 26. District to Keep Books, Records and Other Data. The District shall establish and maintain accounts and other books.and records sufficient to enable Contractor to detennine the use and disposition of all monies paid by Contractor to District pursuant to this agreement. Article 27. Inspection of Books and Records. The officers or agents of the Contractor shall have full and free access at all reasonable times to the account books and official records of the District insofar as the same pertain to the matters and things provided for in this agreement, with the right at any time during office hours to make copies thereof, and the representatives of the District and the State of California shall have the same rights in respect to the account books and records of the Contractor. Article 28 Good Faith. Contractor and District shall each act in good faith in perfonning their respective obligations as set forth in this agreement. Article 29 Water Rights. No provision of this agreement shall be considered to be in derogation of any existing water right(s) or claim(s) to water right(s) by or any agreements concerning water rights of any party hereto, including but not limited to overlying, prescriptive, appropriative, riparian, or pueblo rights, nor shall it be construed to result in any relinquishment or adjustment of any such water rights or claims thereto: and, in particular, no provision of this agreement shall be considered to diminish, reduce or affect, in any way, any party's rights pursuant to California Government Code Section 1005.1 and/or Section 1005.2.
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Article 30 Joint Powers -Agreement and/or Authority. No provision of this agreement is intended to prohibit the District and Contractor, in conjunction with other contractors, from entering into a joint powers agreement, or from fonning a joint powers authority, concerning any subject matter contained in this agreement provided, however, that it is understood that this paragraph shall not be construed as requiring District or Contractor, or any other contractor, to enter into any such joint powers agreement or fonn such joint powers authority. ARTICLE 31. Advisory Group. District and Contractor shall use their best efforts to fonn, with other Contractors for Project Water, an advisory group, the membership of which shall be representatives of District and Contractor and of other Contractors. The purpose of the advisory group shall be to monitor all aspects of this agreement and related agreements and to advise the governing bodies of District and Contractor on the functioning of this agreement and related agreements, and to recommend to the governing bodies of District and Contractor any modifications to said agreements that may, from time to time, be appropriate. Article 32. Agreements to be Unifonn. Agreements executed by the District with other agencies shall be substantially similar to this agreement with respect to basic tenns and conditions, and shall differ primarily with respect to quantities and payment amounts; except that any such agreement( s) with San Luis Obispo County Waterworks District No. 8, Morro Rock Mutual Water Company and/or Paso Robles Beach Water Association may include provisions for exchange of water in lieu of participation in the construction of Local Facilities. and, also, conditions precedent concerning the construction of Local Facilities. IN WITNESS WHEREOF, the parties hereto have executed this agreement on the date first above written. ATTEST: SAN LUIS OBISPO COUNTY FLOOD CONTROL
ATTEST:
yB f;;A_...;ANCIS M. COONEY _
stw\cntoper.agr.cmc
COUNTY OF SAN LUIS OBISPO
By Sao Lub ObilPO, State of Cltlfomll |
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County of San Luis Obispo
Public Works, State Water Project Subcontractors Advisory Committee
2022-05-06-SWSAC-Agenda-PKT
I
(Exhibit_)
(1) ucentral Coast Water Authority" shall mean and is a joint exercise of powers agency duly organized and validly existing under the Constitution and laws of the State of California.
Contractor within a reasonable time before the desired change is to become effective, and shall be subject to review and modification by the District in like manner as the schedule itself. The District shall approve all requests for changes in delivery from one delivery structure to another when there is sufficient capacity available in the transportation facilities, considering the then current delivery schedules of all subcontractors; provided, that the Contractor agrees to pay all increased costs incurred by the District as a result of such change.
costs and expenses incurred by District in the enforcement or attempted enforcement of said rights under the Master Contract shall be considered to be Administrative costs under this agreement.
up to an amount equal to, but not exceeding the amount provided for in Article 6 of this agreement.
Transportation Minimum Operation Maintenance, Power and Replacement Component (MinimumptoiAd
(e) Reduced Deliveries.
given and delivered if delivered personally or if enclosed in a properly addressed envelope and deposited in a United States Post Office for delivery by registered or certified mail. Unless and until fonnally notified otherwise, all notices shall be addressed to the parties at their addresses as shown on the signature page of this agreement.
AND LUn-"D',I, RICT
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