Notice of Regular Meeting Oceano Community Services ......at this time, Public comment is limited to three (3) minutes. Notice of Regular Meeting Oceano Community Services District

This public comment period provides an opportunity for members of the public to address the Board on matters discussed during Agenda Item #7 – Special Presentations and Reports. If a member of the public wishes to speak at this time, Public comment is limited to three (3) minutes.

This public comment period provides an opportunity for members of the public to address the Board on matters of interest within the jurisdiction of the District that are not listed on the agenda. If a member of the public wishes to speak at this time, Public comment is limited to three (3) minutes.

Notice of Regular Meeting Oceano Community Services District - Board of Directors Agenda

WEDNESDAY, January 22, 2020 – 6:00 P.M. Oceano Community Services District Board Room

1655 Front Street, Oceano, CA

All items on the agenda including information items, may be deliberated. Any member of the public with an interest in one of these items should review the background material and request information on the possible action that could be taken.

All persons desiring to speak during any Public Comment period are asked to fill out a “Board Appearance Form” to submit to the General Manager prior to the start of the meeting. Each individual speaker is limited to a presentation time of THREE (3) minutes per item. Persons wishing to speak on more than one item shall limit his/her remarks to a total of SIX (6) minutes. This time may be allocated between items in one-minute increments up to three minutes. Time limits may not be yielded to or shared with other speakers.

1. CALL TO ORDER 2. ROLL CALL 3. FLAG SALUTE 4. AGENDA REVIEW 5. CLOSED SESSION:

A. Pursuant to Government Code §54956.9 (d)(2): Conference with District Counsel regarding anticipated litigation. Number of cases: two (2).

6. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA

7. SPECIAL PRESENTATIONS & REPORTS: A. STAFF REPORTS:

i. Operations – Utility System Manager Tony Marraccino ii. FCFA Operations - Chief Steve Lieberman iii. OCSD General Manager – Will Clemens iv. Sheriff’s South Station - Commander Michael Manuele

B. BOARD OF DIRECTORS AND OUTSIDE COMMITTEE REPORTS: i. Director Villa

ii. Director Gibson iii. Vice President White iv. President Austin v. Director Replogle

C. PUBLIC COMMENT ON SPECIAL PRESENTATIONS AND REPORTS:

January 22, 2020 - Page 1 of 91

Public comment Members of the public wishing to speak on consent agenda items may do so when recognized by the Presiding Officer. To facilitate public comment, we request persons wishing to speak to fill out a speak request form and give it to the General Manager. Public comment is limited to three (3) minutes.

Public comment Members of the public wishing to speak on business items may do so when recognized bythe Presiding Officer. To facilitate public comment, we request persons wishing to speak to fill out a speak request form and give it to the General Manager. Public comment is limited to three (3) minutes.

8. CONSENT AGENDA ITEMS:

A. Review and Approval of Minutes for December 11, 2019B. Review and Approval of Cash DisbursementsC. Annual review of the District’s Investment Policy and Consideration of a Recommendation to approve

a resolution adopting the District’s 2020 Investment Policy and submittal of the District Fiscal Year 2019-20 Quarter 2 Treasurer's Report

D. Consideration of a Recommendation approving Moss, Levy & Hartzheim, LLP as the District Auditors for Fiscal Year 2019-20 through 2021-22 at a cost of $19,875 - $21,290 and receive and file the June 30, 2019 Audited Financial Statements and Independent Auditors Report prepared by Moss, Levy and Hartzheim, LLP

E. Consideration of a recommendation to approve a budget adjustment increasing the project budget for the Oceano Generator Project by $18,425 for change order #2 including design and structural engineering support in the amount of $8,033.50 from Facilities Fund contingencies and $10,391.50 from public facilities reserves

9. BUSINESS ITEMS:

A. Consideration of recommendations to approve a resolution to support Measure A-20 for OceanoEmergency Medical and Fire Protection Services

B. Recommendation to review color options for the Old Fire Station at 1687 Front Street and make a finalcolor selection

C. Consideration of recommendations to approve a resolution reducing the Franchise fee payment fromSouth County Sanitary Inc. as the Board deems appropriate

D. Review and Consideration of a letter to State Parks regarding the Public Works Plan (PWP) ProjectProposed Concepts and Options relating to the Oceano Dunes State Vehicular Recreation Area(ODSVRA)

E. Review and Consideration of a letter to the City of Pismo Beach regarding their Notice of Preparation ofa Draft Environmental Impact Report for the Central Coast Blue Project

10. HEARING ITEMS:11. RECEIVED WRITTEN COMMUNICATIONS: Chelsea Potter, Kara Woodruff, James Miers, Annette Sheely, &

Brenda Lowe12. LATE RECEIVED WRITTEN COMMUNICATIONS:

14. FUTURE HEARING ITEMS:15. ADJOURNMENT:

ADDENDUM: Oceano CSD June 30, 2019 Audit

This agenda was prepared and posted pursuant to Government Code Section 54954.2. Agenda is posted at the Oceano Community Services District, 1655 Front Street, Oceano, CA. Agenda and reports can be accessed and downloaded from the Oceano Community Services District website at www.oceanocsd.org ASSISTANCE FOR THE DISABLED If you are disabled in any way and need accommodation to participate in the Board meeting, please call the Clerk of the Board at (805) 481-6730 for assistance at least three (3) working days prior to the meeting so necessary arrangements can be made.

13. FUTURE AGENDA ITEMS: District Policies, Roles and Responsibilities with Related Agencies, Five Cities FireAuthority, District Rules and Regulations, Cienaga Seabreeze Park, Inc. Continued, Deferred InfrastructureProgram, Lopez Water Contract Amendments, Wastewater CIP, The Place, EIR State Parks PWP, OldFirehouse Art

January 22, 2020 - Page 2 of 91

http://www.oceanocsd.org/

Oceano Community Services District Summary Minutes

Regular Meeting Wednesday, December 11, 2019 – 6:00 P.M. Oceano Community Services District Board Room

1655 Front Street, Oceano, CA

1. CALL TO ORDER: at 6:00 p.m. by President Austin2. FLAG SALUTE: led by President Austin3. ROLL CALL: Board members present: President Austin, Vice President White, Director Gibson, Director

Villa, and Director Replogle. Also present, General Manager Will Clemens, Legal Counsel Jeff Minnery,Business and Accounting Manager Carey Casciola, and Board Secretary Celia Ruiz.

4. AGENDA REVIEW: Agenda approved as presented.5. RECOGNITION OF SERVICE TO THE DISTRICT, PAAVO OGREN

Public comment was received by Jim Coalwell, Michael Manuele, Jeff Lee, Steve Lieberman, TonyMarraccino, Will Clemens, and Paavo Ogren.

6. CLOSED SESSION: Closed session was entered at approximately 6:19pm. Open session was resumed atapproximate 7:06pmNo reportable actionNo public comment

7. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA (NOT BEGINNING BEFORE 7:00 PM):No public comment.

8. SPECIAL PRESENTATIONS & REPORTS:A. STAFF REPORTS:

i. Operations - Field Supervisor Tony Marraccino – reported on 13 work orders, 18 USA’s, 11customer calls, 1 after hour call out, Lopez currently at 52.1%, no SSO’s in the month ofNovember, monthly and weekly samples, line break between 22nd and 23rd St in alley, FOGprogram, sewer jetting, Well 8 update, meter reads, 311 App 3 work orders, drainage projectupdate.

ii. FCFA - Chief Steve Lieberman – Noneiii. OCSD General Manager – Will Clemens – reported on transition work with Paavo Ogren, meet

with AG, Grover Beach and Chief Lieberman, attended Zone 3 TAC.iv. Sheriff’s South Station - Commander Michael Manuele – None

B. BOARD OF DIRECTORS AND OUTSIDE COMMITTEE REPORTS:i. Director Villa – attended State Parks Public Works Meeting

ii. Director Gibson – reported on Zone 3, and State Water Sub Contractors Committeeiii. Vice President White – reported on FCFAiv. President Austin – reported on SSLOCSD

v. Director Replogle – reported on RWMG Meeting, OAC, and WRACc. PUBLIC COMMENT ON SPECIAL PRESENTATIONS AND REPORTS:Public comment was received by Mary Lucey and Nancy Bull.

Agenda Item 8(A) January 22, 2020 - Page 3 of 91

9 CONSENT AGENDA: ACTION: a. Review and Approval of Minutes for November 13, 2019 b. Review and Approval of Cash Disbursements c. Submittal for Approval of a Resolution to Close the District for

normal operations on December 24, 2019 and December 31, 2019 d. Recommendation to approve a budget adjustment in the amount of

$13,000 from Facilities Fund contingencies to paint the Old Fire Station at 1687 Front Street

After an opportunity for public comment and Board discussion, staff recommendations were approved as modified with the addition of $ 16,283.62 for a total of $ 150,918.02 with a motion from Vice President White, and a second from Director Gibson and a 5-0 roll call vote. No public comment.

10A BUSINESS ITEM: ACTION: Update on the Low Impact Development Component of the Water Resource Reliability Program and approval of a letter of support

After a presentation by John Evans and opportunity for public comment and Board discussion, no action taken. Public comment was received by Mary Lucey.

10B BUSINESS ITEM: ACTION: Consideration of recommendations to approve a trial program for residential large / bulky item disposal and to provide staff with direction on reducing 2020 garbage rates

After an opportunity for public comment and Board discussion, staff recommendations were approved to go with option #2 approval of the trial program for 2020 in lieu of the semi-annual bulky item pick-up during clean-up week at no cost to Oceano customers and to bring back a resolution to reduce franchise fee payments with a motion from Vice President White, and a second from Director Villa and a 5-0 roll call vote Public comment was received by Nancy Bull, and Mary Lucey.

10C BUSINESS ITEM: ACTION: Consideration of recommendations to authorize the General Manager to award the construction contract for the Norswing/ Pershing Waterline replacement Project (Project #2019-03) in accordance with District Ordinance 2016-01 and to approve a corresponding budget adjustment based on the lowest responsible and responsive bid

After an opportunity for public comment and Board discussion, a motion authorizing the General Manager to award the construction contract to the lowest responsive and responsible bidder and approve a budget adjustment in the amount of $195,000 from Director Gibson, and a second from Vice President White and a 5-0 roll call vote. No public comment.

10D BUSINESS ITEM: ACTION: Election of District Officer and 2020 Committee Assignments

After an opportunity for public comment and brief Board discussion, a nomination was made for Linda Austin as President and Karen White as Vice President with a motion from Director Gibson, and a second from Vice President White and a 5-0 roll call vote. A second motion was made to preclude Director Replogle from participating on any of the District Committees and Liaison and subject matters for the year 2020 with a motion from Vice President White, a second from Director Gibson and a 3-2 roll call vote. Director Villa and Director Replogle dissented. Director Replogle left meeting at approximately 8:40 pm A third motion was made to approve the attached list of 2020 committee & subject matter assignments with a motion from Vice President White, and a second from Director Gibson and a 4-0 roll call vote. Director Replogle absent. Public comment was received by Mary Lucey.

11. HEARING ITEMS: None 12. RECEIVED WRITTEN COMMUNICATIONS: None 13. LATE RECEIVED WRITTEN COMMUNICATIONS: None 14. FUTURE AGENDA ITEMS: District Policies, Roles and Responsibilities with Related Agencies, Five Cities Fire Authority, District Rules and Regulations, Cienaga Seabreeze Park, Inc. Continued, Deferred Infrastructure Program, Lopez Water Contract Amendments, Wastewater CIP, The Place, EIR State Parks PWP, Old Firehouse Art, Special Meeting on January 25th Public comment was received by Mary Lucey, and Brenda Lowe.

15. FUTURE HEARING ITEMS: None

16. ADJOURNMENT: at approximately 9:00 pm


Date: January 22, 2020

To: Board of Directors

From: Carey Casciola, Business and Accounting Manager

Subject: Agenda Item #8B: Recommendation to Approve Cash Disbursements

Recommendation

It is recommended that your board approve the attached cash disbursements:

Discussion

The following is a summary of the attached cash disbursements:

Description Amounts

58150 ‐ 58214

Disbursements Requiring Board Approval prior to Payment:

Regular Payable Register ‐ paid 01/22/2020 58165 ‐ 58185 74,269.38$

Regular Payable Register ‐ paid 01/22/2020 58202 ‐ 58214 30,437.54$

Subtotal: 104,706.92$

Reoccrring Payments for Board Review (authorized by Resolution 2018‐11):

Payroll Disbursements ‐ PPE 12/07/2019 32,611.45$




County Electronic Journal Entry Disburements for Water Supplies 736,250.32$

Reoccurring Utility Disbursements ‐ paid 12/11/2019 58150 ‐ 58161 9,681.68$

Reoccurring Health Disbursements ‐ paid 12/11/2019 58162 ‐ 58164 10,296.43$

Reoccurring Utility Disbursements ‐ paid 01/13/2020 58186 ‐ 58198 8,433.11$

Reoccurring Health Disbursements ‐ paid 01/13/2020 58199 ‐ 58201 8,253.69$

Subtotal: 904,866.65$

Grand Total: 1,009,573.57$

Other Agency Involvement

N/A

Other Financial Considerations

Amounts are within the authorized Fund level budgets.

Results

Check Sequence

The Board's review of cash disbursements is an integral component of the District's system of internal controls and

promotes a well governed community.

N/A

N/A

N/A

N/A

N/A

Oceano Community Services District

1655 Front Street, P.O. Box 599, Oceano, CA 93475

PHONE(805) 481‐6730 FAX (805) 481‐6836

Agenda Item 8(B) January 22, 2020 - Page 5 of 91

1/02/2020 4:11 PM CHECK RECONCILIATION REGISTER PAGE: 1

COMPANY: 99 - POOLED CASH FUND CHECK DATE: 0/00/0000 THRU 99/99/9999

ACCOUNT: 1-1001-000 POOLED CASH OPERATING CLEAR DATE: 0/00/0000 THRU 99/99/9999

TYPE: All STATEMENT: 0/00/0000 THRU 99/99/9999

STATUS: All VOIDED DATE: 0/00/0000 THRU 99/99/9999

FOLIO: All AMOUNT: 0.00 THRU 999,999,999.99

CHECK NUMBER: 058165 THRU 058185

ACCOUNT --DATE-- --TYPE-- NUMBER ---------DESCRIPTION---------- ----AMOUNT--- STATUS FOLIO CLEAR DATE

CHECK: ----------------------------------------------------------------------------------------------------------------

1-1001-000 1/02/2020 CHECK 058165 PETTY CASH 3.05CR OUTSTND A 0/00/0000

1-1001-000 1/02/2020 CHECK 058166 CANNON 6,183.00CR OUTSTND A 0/00/0000

1-1001-000 1/02/2020 CHECK 058167 WHITE, KAREN M. 100.00CR OUTSTND A 0/00/0000

1-1001-000 1/02/2020 CHECK 058168 MARK SCHWIND ELECTRIC INC. 35,646.06CR OUTSTND A 0/00/0000

1-1001-000 1/02/2020 CHECK 058169 BURDINE PRINTING & GRAPHICS 1,572.83CR OUTSTND A 0/00/0000

1-1001-000 1/02/2020 CHECK 058170 ARAMARK 212.52CR OUTSTND A 0/00/0000

1-1001-000 1/02/2020 CHECK 058171 SARGENT'S PLUMBING & HEATING, 235.00CR OUTSTND A 0/00/0000

1-1001-000 1/02/2020 CHECK 058172 SCOTT O'BRIEN FIRE & SAFETY CO 434.04CR OUTSTND A 0/00/0000

1-1001-000 1/02/2020 CHECK 058173 ONE COOL EARTH 4,750.00CR OUTSTND A 0/00/0000

1-1001-000 1/02/2020 CHECK 058174 REPLOGLE, CYNTHIA 200.00CR OUTSTND A 0/00/0000

1-1001-000 1/02/2020 CHECK 058175 TROESH COLEMAN PACIFIC 332.48CR OUTSTND A 0/00/0000

1-1001-000 1/02/2020 CHECK 058176 BRENT SARKISON DBA CALTECH COM 30.00CR OUTSTND A 0/00/0000

1-1001-000 1/02/2020 CHECK 058177 MARWAL CONSTRUCTION INC. 5,625.00CR OUTSTND A 0/00/0000

1-1001-000 1/02/2020 CHECK 058178 ALL AMERICAN DRILLING INC. 10,905.56CR OUTSTND A 0/00/0000

1-1001-000 1/02/2020 CHECK 058179 CLINICAL LAB OF SAN BERNARDINO 360.00CR OUTSTND A 0/00/0000

1-1001-000 1/02/2020 CHECK 058180 J.B. DEWAR, INC. 1,188.29CR OUTSTND A 0/00/0000

1-1001-000 1/02/2020 CHECK 058181 MINER'S ACE HARDWARE, INC. 83.31CR OUTSTND A 0/00/0000

1-1001-000 1/02/2020 CHECK 058182 QUILL CORPORATION 419.94CR OUTSTND A 0/00/0000

1-1001-000 1/02/2020 CHECK 058183 SLO CO PUBLIC HEALTH DEPT. 903.30CR OUTSTND A 0/00/0000

1-1001-000 1/02/2020 CHECK 058184 PRO-TECH LANDSCAPE MANAGEMENT, 410.00CR OUTSTND A 0/00/0000

1-1001-000 1/02/2020 CHECK 058185 SWRCB ACCOUNTING OFFICE 4,675.00CR OUTSTND A 0/00/0000

WRRP

EMERGENCY GENERATOR

SCHOOL OUTREACH PGM

EMERGENCY GENERATOR

WELL TREATMENT

ANNUAL FEES

FUEL - EMERGENCY GENERATOR

ENVELOPES










TOTALS FOR ACCOUNT 1-1001-0 CHECK TOTAL: 74,269.38CR

DEPOSIT TOTAL: 0.00

INTEREST TOTAL: 0.00

MISCELLANEOUS TOTAL: 0.00

SERVICE CHARGE TOTAL: 0.00

EFT TOTAL: 0.00

BANK-DRAFT TOTAL: 0.00

TOTALS FOR POOLED CASH FUND CHECK TOTAL: 74,269.38CR

DEPOSIT TOTAL: 0.00




EFT TOTAL: 0.00











CHECK: ----------------------------------------------------------------------------------------------------------------

1-1001-000 1/16/2020 CHECK 058202 PETTY CASH 15.21CR OUTSTND A 0/00/0000

1-1001-000 1/16/2020 CHECK 058203 CANNON 12,869.30CR OUTSTND A 0/00/0000

1-1001-000 1/16/2020 CHECK 058204 GATOR CRUSHING & RECYCLING 22.90CR OUTSTND A 0/00/0000

1-1001-000 1/16/2020 CHECK 058205 ICONIX WATERWORKS (US) INC. 182.33CR OUTSTND A 0/00/0000

1-1001-000 1/16/2020 CHECK 058206 ARAMARK 106.26CR OUTSTND A 0/00/0000

1-1001-000 1/16/2020 CHECK 058207 ZENITH INSURANCE COMPANY 1,616.00CR OUTSTND A 0/00/0000

1-1001-000 1/16/2020 CHECK 058208 GSI WATER SOLUTIONS, INC. 2,605.70CR OUTSTND A 0/00/0000

1-1001-000 1/16/2020 CHECK 058209 SAFETY NOW SOLUTIONS LLC 450.00CR OUTSTND A 0/00/0000

1-1001-000 1/16/2020 CHECK 058210 RABOBANK VISA CARD 775.75CR OUTSTND A 0/00/0000

1-1001-000 1/16/2020 CHECK 058211 J.B. DEWAR, INC. 231.44CR OUTSTND A 0/00/0000

1-1001-000 1/16/2020 CHECK 058212 MINER'S ACE HARDWARE, INC. 8.56CR OUTSTND A 0/00/0000

1-1001-000 1/16/2020 CHECK 058213 SM TIRE, INC 734.09CR OUTSTND A 0/00/0000

1-1001-000 1/16/2020 CHECK 058214 MOSS, LEVY & HARTZHEIM 10,820.00CR OUTSTND A 0/00/0000


DEPOSIT TOTAL: 0.00




EFT TOTAL: 0.00



DEPOSIT TOTAL: 0.00




EFT TOTAL: 0.00


WRRP

Workers' Comp Insurance

Audit

NCMA 2019


Payroll Summary Report

Board of Directors ‐ Agenda Date January 22, 2020

(*) (**)

Gross Wages 11/23/2019 12/7/2019 12/13/2019 12/21/2019 1/4/2020

Regular $25,865.92 $27,837.02 $38,726.63 $25,963.56 $25,556.91

Overtime Wages $581.47 $278.32 $0.00 $384.81 $477.32

Stand By $600.00 $450.00 $0.00 $600.00 $450.00

Gross Wages $27,047.39 $28,565.34 $38,726.63 $26,948.37 $26,484.23

Cell Phone Allowance $0.00 $150.00 $0.00 $0.00 $75.00

Total Wages $27,047.39 $28,715.34 $38,726.63 $26,948.37 $26,559.23

Disbursements

Net Wages $19,772.96 $21,745.51 $21,221.46 $20,762.93 $20,205.58

State and Federal Agencies $5,536.61 $5,457.66 $18,060.96 $5,660.69 $5,262.39

CalPERS ‐ Normal $4,917.01 $5,259.56 $0.00 $3,934.26 $3,934.26

SEIU ‐ Union Fees $148.72 $148.72 $0.00 $148.72 $148.72

Total Disbursements processed with Payroll $30,375.30 $32,611.45 $39,282.42 $30,506.60 $29,550.95

Health (Disbursed with reoccurring bills) $4,964.24 $4,605.24 $0.00 $4,564.84 $5,966.99

Total District Payroll Related Costs $35,339.54 $37,216.69 $39,282.42 $35,071.44 $35,517.94

(*) Previously reported in prior Board Meeting packet ‐ provided for comparison.

(**) Retired General Manager's final pay and leave time.



Invoice Vendor Amount G/L Account Account Name Distribution1 835 / CM 851 County of SLO Public Works 210,158.32$ 02-5-4400-261 Water Supply - Lopez 210,158.32$

2 2754 County of SLO Public Works 578,112.00$ 02-5-4400-262 Water Supply - State Water $ 526,092.00

A/P Approval

736,250.32$ Total County Electronic Journal Entries

for Water Supply

County of San Luis Obispo Electronic Journal Entries










CHECK: ----------------------------------------------------------------------------------------------------------------

1-1001-000 12/11/2019 CHECK 058150 RABOBANK EQUIPMENT LEASE 755.60CR OUTSTND A 0/00/0000

1-1001-000 12/11/2019 CHECK 058151 DE LAGE LANDEN FINANCIAL SERVI 150.15CR OUTSTND A 0/00/0000

1-1001-000 12/11/2019 CHECK 058152 ADVANTAGE ANSWERING PLUS, INC 293.01CR OUTSTND A 0/00/0000

1-1001-000 12/11/2019 CHECK 058153 AGP VIDEO INC. 860.00CR OUTSTND A 0/00/0000

1-1001-000 12/11/2019 CHECK 058154 CHARTER COMMUNICATIONS 150.00CR OUTSTND A 0/00/0000

1-1001-000 12/11/2019 CHECK 058155 DIGITAL WEST NETWORKS, INC. 603.53CR OUTSTND A 0/00/0000

1-1001-000 12/11/2019 CHECK 058156 VERIZON WIRELESS 238.87CR OUTSTND A 0/00/0000

1-1001-000 12/11/2019 CHECK 058157 PACIFIC GAS & ELECTRIC 5,794.65CR OUTSTND A 0/00/0000

1-1001-000 12/11/2019 CHECK 058158 SO CAL GAS 132.31CR OUTSTND A 0/00/0000

1-1001-000 12/11/2019 CHECK 058159 STANLEY CONVERGENT SECURITY SO 99.60CR OUTSTND A 0/00/0000

1-1001-000 12/11/2019 CHECK 058160 ELECSYS INTERNATIONAL CORP 223.50CR OUTSTND A 0/00/0000

1-1001-000 12/11/2019 CHECK 058161 COASTAL COPY, INC. 380.46CR OUTSTND A 0/00/0000


DEPOSIT TOTAL: 0.00




EFT TOTAL: 0.00



DEPOSIT TOTAL: 0.00




EFT TOTAL: 0.00











CHECK: ----------------------------------------------------------------------------------------------------------------

1-1001-000 12/11/2019 CHECK 058162 BLUE SHIELD OF CALIFORNIA 8,982.98CR OUTSTND A 0/00/0000

1-1001-000 12/11/2019 CHECK 058163 TASC -CLIENT INVOICES 56.21CR OUTSTND A 0/00/0000

1-1001-000 12/11/2019 CHECK 058164 PRINCIPAL LIFE INSURANCE COMPA 1,257.24CR OUTSTND A 0/00/0000


DEPOSIT TOTAL: 0.00




EFT TOTAL: 0.00



DEPOSIT TOTAL: 0.00




EFT TOTAL: 0.00











CHECK: ----------------------------------------------------------------------------------------------------------------

1-1001-000 1/14/2020 CHECK 058186 HIRIARTE'S INDOOR CLEANING SER 825.00CR OUTSTND A 0/00/0000

1-1001-000 1/14/2020 CHECK 058187 RABOBANK EQUIPMENT LEASE 755.60CR OUTSTND A 0/00/0000

1-1001-000 1/14/2020 CHECK 058188 DE LAGE LANDEN FINANCIAL SERVI 150.15CR OUTSTND A 0/00/0000

1-1001-000 1/14/2020 CHECK 058189 ADVANTAGE ANSWERING PLUS, INC 262.84CR OUTSTND A 0/00/0000

1-1001-000 1/14/2020 CHECK 058190 AGP VIDEO INC. 860.00CR OUTSTND A 0/00/0000

1-1001-000 1/14/2020 CHECK 058191 CHARTER COMMUNICATIONS 150.00CR OUTSTND A 0/00/0000

1-1001-000 1/14/2020 CHECK 058192 DIGITAL WEST NETWORKS, INC. 594.17CR OUTSTND A 0/00/0000

1-1001-000 1/14/2020 CHECK 058193 VERIZON WIRELESS 238.87CR OUTSTND A 0/00/0000

1-1001-000 1/14/2020 CHECK 058194 PACIFIC GAS & ELECTRIC 3,819.53CR OUTSTND A 0/00/0000

1-1001-000 1/14/2020 CHECK 058195 SO CAL GAS 189.44CR OUTSTND A 0/00/0000

1-1001-000 1/14/2020 CHECK 058196 STANLEY CONVERGENT SECURITY SO 99.60CR OUTSTND A 0/00/0000

1-1001-000 1/14/2020 CHECK 058197 ELECSYS INTERNATIONAL CORP 223.50CR OUTSTND A 0/00/0000

1-1001-000 1/14/2020 CHECK 058198 COASTAL COPY, INC. 264.41CR OUTSTND A 0/00/0000


DEPOSIT TOTAL: 0.00




EFT TOTAL: 0.00



DEPOSIT TOTAL: 0.00




EFT TOTAL: 0.00











CHECK: ----------------------------------------------------------------------------------------------------------------

1-1001-000 1/14/2020 CHECK 058199 BLUE SHIELD OF CALIFORNIA 6,577.32CR OUTSTND A 0/00/0000

1-1001-000 1/14/2020 CHECK 058200 TASC -CLIENT INVOICES 618.21CR OUTSTND A 0/00/0000

1-1001-000 1/14/2020 CHECK 058201 PRINCIPAL LIFE INSURANCE COMPA 1,058.16CR OUTSTND A 0/00/0000


DEPOSIT TOTAL: 0.00




EFT TOTAL: 0.00



DEPOSIT TOTAL: 0.00




EFT TOTAL: 0.00



Oceano Community Services District 1655 Front Street, P.O. Box 599, Oceano, CA 93475

(805) 481-6730 FAX (805) 481-6836




Subject: Agenda Item #8(C): Annual review of the District’s Investment Policy and Consideration of a Recommendation to approve a resolution adopting the District’s 2020 Investment Policy and submittal of the District Fiscal Year 2019-20 Quarter 2 Treasurer's Report

Recommendation

It is recommended that your Board:

1. Adopt the attached resolution adopting the District’s 2020 Investment Policy.2. Receive and file the District’s 2019-20 Quarter 2 Treasurer's Report.

Discussion

California Government Code Section 53646(A)(2) requires local government entities to adopt an annual investment policy. In January 2019 resolution 2019-01 was adopted by the Board establishing the 2019 Investment Policy. The primary change in 2019 was to add the Local Agency Investment Fund (LAIF) to Section 6 “Permitted Investments.” The policy also established the quarterly reports that have been provided to your Board on the consent agenda at the end of each quarter and the second quarter report for fiscal year 2019-20 is attachment "D."

Section 7(B) of the 2019 Investment Policy requires an annual report (Attachment A) that includes either the readoption of the District’s current annual investment policy or an amendment to the current investment policy. The only amendment recommended to the 2020 Investment Policy at this time is to change Rabobank to Mechanics bank in section 6(A) “Permitted Investments” as the two banks merged in 2019.


The County of San Luis Obispo collects property tax revenues and is the depository of District funds.


n/a

Agenda Item 8(C) January 22, 2020 - Page 15 of 91

Oceano Community Services DistrictBoard of Directors Meeting

Results

Reviewing the existing investment policy in accordance with the Government Code and considering the attached resolution promotes well governed communities.

Attachments:

• Attachment A - Annual 2019 Final Treasurer’s Report• Attachment B - Proposed Resolution – 2020 Investment Policy• Attachment C - Edited Resolution – Redline / Strikeout Version comparison to 2019 Investment Policy• Attachment D – 2019-20 2nd Quarter Treasurer's Report


Oceano Community Services District 2019 Annual Treasurer's Report

Account Quarter Beginning Balance Credits Debits Ending Balance Total

County of San Luis Obispo Accounts:

Oceano CSD ‐ Water Rev ‐ 31215 FY 18‐19 Q3 $104.31 $0.49 $0.00 $104.80

(Revenue Bond) FY 18‐19 Q4 $104.80 $0.54 $0.00 $105.34

FY 19‐20 Q1 $105.34 $0.58 $0.00 $105.92

FY 19‐20 Q2 $105.92 $0.58 $0.00 $106.50 $106.50

Oceano CSD ‐ 41005 FY 18‐19 Q3 $2,656,535.89 $172,704.84 ($676,268.00) $2,152,972.73

FY 18‐19 Q4 $2,152,972.73 $300,466.33 ($91,488.66) $2,361,950.40

FY 19‐20 Q1 $2,361,950.40 $77,645.90 ($828,987.95) $1,610,608.35

FY 19‐20 Q2 $1,610,608.35 $601,924.97 ($3,341.15) $2,209,192.17 $2,209,192.17

Oceano CSD ‐ 41045 FY 18‐19 Q3 $4.59 $0.02 $0.00 $4.61

(Sanitary District Bond ‐ Paid Off) FY 18‐19 Q4 $4.61 $0.02 $0.00 $4.63

FY 19‐20 Q1 $4.63 $0.03 $0.00 $4.66

FY 19‐20 Q2 $4.66 $0.03 $0.00 $4.69 $4.69

County Total $2,209,303.36

Rabobank Accounts:

Public Checking ‐ 1101 FY 18‐19 Q3 $523,141.55 $584,998.74 ($641,595.22) $466,545.07

FY 18‐19 Q4 $466,545.07 $848,485.81 ($726,142.84) $588,888.04

FY 19‐20 Q1 $588,888.04 $732,928.38 ($779,277.39) $542,539.03

FY 19‐20 Q2 $542,539.03 $1,108,807.47 ($849,901.89) $801,444.61 $801,444.61

Public Investment Money Market ‐ 5783 FY 18‐19 Q3 $29,404.37 $14.17 ($75.00) $29,343.54

FY 18‐19 Q4 $29,343.54 $14.62 ($75.00) $29,283.16

FY 19‐20 Q1 $29,283.16 $15.08 ($75.00) $29,223.24

FY 19‐20 Q2 $29,223.24 $14.72 ($75.00) $29,162.96 $29,162.96

Public Fund CD ‐ 7655 FY 18‐19 Q3 $24,130.46 $36.22 $0.00 $24,166.68

(Water Fund Deposit) FY 18‐19 Q4 $24,166.68 $37.07 $0.00 $24,203.75

FY 19‐20 Q1 $24,203.75 $37.13 $0.00 $24,240.88

FY 19‐20 Q2 $24,240.88 $36.79 $0.00 $24,277.67 $24,277.67

Public Investment Money Market ‐ 0161 FY 18‐19 Q3 $239,926.95 $115.71 $0.00 $240,042.66

(Public Facilities Fees) FY 18‐19 Q4 $240,042.66 $119.72 $0.00 $240,162.38

FY 19‐20 Q1 $240,162.38 $21,939.73 $0.00 $262,102.11

FY 19‐20 Q2 $262,102.11 $132.15 $0.00 $262,234.26 $262,234.26

Rabobank Total $1,117,119.50

Total $3,326,422.86

Attachment AAgenda Item 8(C) January 22, 2020 - Page 17 of 91

OCEANO COMMUNITY SERVICES DISTRICT RESOLUTION NO. 2020-____

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE OCEANO COMMUNITY SERVICES DISTRICT ADOPTING THE YEAR 2020 DISTRICT INVESTMENT POLICY

WHEREAS, the Board of Directors of the Oceano Community Services District ("District") has a fiduciary responsibility to assure that public funds are invested in financial instruments and institutions in accordance with State and Federal law and District guidelines; and,

WHEREAS, District funds will be available from time to time that would be beneficial to invest in financial instruments in accordance with the Year 2020 Investment Policy (Exhibit A) and deposited in interest bearing accounts, in banks or financial institutions having offices within the State; and,

WHEREAS, the Board of Directors finds that it is impractical to expect that the District will hire and provide continuous training to the District Finance Officer/Treasurer to meet the “Prudent Investor Standard” requirements established in Government Code Section 53600.3, and that the District Board of Directors shall authorize investments in accordance with the provisions of the District's current Investment Policy and the California Government Code.

NOW, THEREFORE, BE IT RESOLVED, by the Board of Directors of the Oceano Community Services District that the District Finance Officer/Treasurer is hereby authorized to deposit for safe keeping all money belonging to, or in the custody of, the District pursuant to Exhibit A, the District's Year 2020 Investment Policy; and,

BE IT FURTHER RESOLVED that the District hereby adopts a Statement of Investment Policy attached here to as Exhibit A, Year 2020 Investment Policy, which supersedes any previously adopted or utilized policies and that this Policy be effective immediately.

On motion by ______, seconded by ______ and carried on the following roll call vote, to wit:

AYES: NAYES: ABSENT: ABSTAIN:

The foregoing Resolution is hereby passed and adopted this ___ day of January, 2020.

__________________ President, Board of Directors

ATTEST: of the Oceano Community Services District

____________________ Board Secretary of the Oceano Community Services District

Attachment BAgenda Item 8(C) January 22, 2020 - Page 18 of 91

RESOLUTION 2020-___ EXHIBIT A

YEAR 2020 INVESTMENT POLICY OCEANO COMMUNITY SERVICES DISTRICT

1. INTRODUCTION

The purpose of this Investment Policy is to establish the guidelines for the prudentinvestment of Oceano Community Services District funds (herein referred to asDistrict funds).

District funds are to be managed with a high degree of care and prudence.Though all investments contain a degree of risk, the proper concern for prudence,high ethical standards, and proper delegation of authority reduces the potentialfor any realized loss.

This Policy establishes the standards under which the District's FinanceOfficer/Treasurer will conduct business with financial institutions with regard to theinvestment process.

2. FINANCE OFFICER/TREASURER

The Board of Directors appoints the General Manager as the District FinanceOfficer/Treasurer. The General Manager, may appoint the Business andAccounting Manager to act as the District Finance Officer/Treasurer.

3. SCOPE

The District investment portfolio shall consist of money in the District's treasury notrequired for the immediate necessities of the District. The District funds shall beinvested in accordance with this Policy.

4. OBJECTIVES

The primary objectives are safety, liquidity, and yield as stated in paragraphs 4.A.- 4.D. below, and in compliance with California and Federal law.

A. SAFETYThe investment portfolio shall be managed in a manner that ensures thepreservation of capital. The objective is to minimize credit risk and interestrate risk.

B. LIQUIDITY

The investment portfolio shall remain sufficiently liquid to meet all operatingrequirements. This shall be accomplished by structuring the investmentportfolio so that investments mature concurrently with cash needs.


C. YIELD

Yield shall be a consideration only after the requirement of safety and liquidity have been met.

D. COMPLIANCE

This Investment Policy is written to be in compliance with California and Federal law.

5. STANDARDS OF CARE

A. PRUDENCE When investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing public funds in the District's investment portfolio, the Finance Officer/Treasurer shall act with care, skill, prudence, and diligence under the circumstances then prevailing, that a prudent person acting in a like capacity and familiarity with those matters would use in the management of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the District.

B. DISCLOSURES

The Finance Officer/Treasurer shall disclose any material interest in financial institutions with which he/she conducts the District business.

6. INVESTMENTS AUTHORITY

A. PERMITTED INVESTMENTS

The District Finance Officer/Treasurer is authorized to invest in the following institutions: 1. County pooled funds (California Government Code Section 61730).

2. Mechanics, an FDIC insured Bank, in the accounts specified by the

Board of Directors, including those accounts ending in 0161, 1101, 5783, 7655. Any additional accounts or investments in Mechanics require advanced approval by the Board of Directors.

3. Such other financial institutions or securities that may be

specifically approved by the Board of Directors from time to time in compliance with California and Federal law.

4. Local Agency Investment Fund (California Government Code

Section 16429.1) in the accounts approved by the Board of Directors.

B. PROHIBITED INVESTMENTS

The District's Finance Officer/Treasurer shall not invest in any investment not specifically authorized by the Board of Directors, and in no event shall the Board of Directors authorize any of the following:


C. Inverse floaters, range notes, or interest only strips that are derived from a pool of mortgages.

D. Any security that could result in a zero interest accrual if held to maturity.

E. A state or federal credit union, if a member of the District's Board of

Directors or an administrative officer also serves on the Board of Directors, or any committee appointed by the Board of Directors, or the credit committee or supervisory committee of the state or federal credit union.

F. Any instrument rated lower than Bank investment grade.

C. DIVERSIFICATION Investments, other that investments referenced in paragraphs A. (1) and (2) above, should be diversified to avoid losses that may be associated with any one investment.

7. REPORTS

A. QUARTERLY REPORT

The Finance Officer/Treasurer shall file a quarterly report that identifies the District's investments and their compliance with the District's Investment Policy. The quarterly report shall be filed with the District's auditor and considered by the District's Board of Directors within thirty (30) days after the end of each quarter (i.e., by May 1 August 1, November 1, and February 1) (California Government Code Section 53646). Required elements of the quarterly report are as follows:

1. Type of Investment

2. Institution

3. Date of Maturity (if applicable)

4. Amount of Deposit or Cost of the Security

5. Current Market Value of Securities with Maturity in Excess of Twelve Months (if applicable)

6. Rate of Interest

7. Statement Relating the Report to the Statement of Investment Policy

8. Statement that there are Sufficient Funds to Meet the Next 30 Days' Obligations

9. Accrued Interest (if applicable)

B. ANNUAL REPORT

Prior to February 1 of each year, the Finance Officer/Treasurer shall file


and submit an annual report to the District's auditor and Board of Directors which will contain the same information required in the quarterly report.

The annual report will include a recommendation to the Board of Directors to either:

1. Readopt the District's then current annual Investment Policy.

2. Amend the District's then current Investment Policy.

C. LIMITED QUARTERLY REPORT

If the District has placed all of its investments in the Local Agency Investment Fund (LAIF), created by California Government Code Section 16429.1, or in Federal Deposit Insurance Corporation, insured accounts in a bank, in a County investment pool, or any combination of these, the Finance Officer/Treasurer may submit to the Board of Directors and the auditor of the District the most recent statement or statements received by the District from these institutions in lieu of the information required in paragraph 7.A., above. This special reporting policy does not relieve the Finance Officer/Treasurer of the obligation to prepare an annual investment statement as identified in paragraph 7.B., above.


OCEANO COMMUNITY SERVICES DISTRICT RESOLUTION NO. 20192020-____

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE OCEANO COMMUNITY SERVICES DISTRICT ADOPTING THE YEAR 20192020 DISTRICT INVESTMENT POLICY

WHEREAS, the Board of Directors of the Oceano Community Services District

("District") has a fiduciary responsibility to assure that public funds are invested in financial instruments and institutions in accordance with State and Federal law and District guidelines; and,

WHEREAS, District funds will be available from time to time that would be

beneficial to invest in financial instruments in accordance with the Year 2019 2020 Investment Policy (Exhibit A) and deposited in interest bearing accounts, in banks or financial institutions having offices within the State; and,

WHEREAS, the Board of Directors finds that it is impractical to expect that the District will hire and provide continuous training to the District Finance Officer/Treasurer to meet the “Prudent Investor Standard” requirements established in Government Code Section 53600.3, and that the District Board of Directors shall authorize investments in accordance with the provisions of the District's current Investment Policy and the California Government Code.

NOW, THEREFORE, BE IT RESOLVED, by the Board of Directors of the

Oceano Community Services District that the District Finance Officer/Treasurer is hereby authorized to deposit for safe keeping all money belonging to, or in the custody of, the District pursuant to Exhibit A, the District's Year 2019 2020 Investment Policy; and,

BE IT FURTHER RESOLVED that the District hereby adopts a Statement of

Investment Policy attached here to as Exhibit A, Year 2019 2020 Investment Policy, which supersedes any previously adopted or utilized policies and that this Policy be effective immediately.

On motion by ______, seconded by ______ and carried on the following roll call vote, to wit:

AYES: NAYES: ABSENT: ABSTAIN:

The foregoing Resolution is hereby passed and adopted this ___ day of January, 20192020.

__________________ President, Board of Directors

ATTEST: of the Oceano Community Services District

____________________ Board Secretary of the Oceano Community Services District

Attachment CAgenda Item 8(C) January 22, 2020 - Page 23 of 91

RESOLUTION 20192020-___ EXHIBIT A

YEAR 2019 2020 INVESTMENT POLICY

OCEANO COMMUNITY SERVICES DISTRICT

1. INTRODUCTION

The purpose of this Investment Policy is to establish the guidelines for the prudent investment of Oceano Community Services District funds (herein referred to as District funds).

District funds are to be managed with a high degree of care and prudence. Though all investments contain a degree of risk, the proper concern for prudence, high ethical standards, and proper delegation of authority reduces the potential for any realized loss.

This Policy establishes the standards under which the District's Finance Officer/Treasurer will conduct business with financial institutions with regard to the investment process.

2. FINANCE OFFICER/TREASURER

The Board of Directors appoints the General Manager as the District Finance Officer/Treasurer. The General Manager, may appoint the Business and Accounting Manager to act as the District Finance Officer/Treasurer.

3. SCOPE

The District investment portfolio shall consist of money in the District's treasury not required for the immediate necessities of the District. The District funds shall be invested in accordance with this Policy.

4. OBJECTIVES

The primary objectives are safety, liquidity, and yield as stated in paragraphs 4.A. - 4.D. below, and in compliance with California and Federal law.

A. SAFETY

The investment portfolio shall be managed in a manner that ensures the preservation of capital. The objective is to minimize credit risk and interest rate risk.

B. LIQUIDITY

The investment portfolio shall remain sufficiently liquid to meet all operating requirements. This shall be accomplished by structuring the investment


portfolio so that investments mature concurrently with cash needs.

C. YIELD Yield shall be a consideration only after the requirement of safety and liquidity have been met.

D. COMPLIANCE

This Investment Policy is written to be in compliance with California and Federal law.

5. STANDARDS OF CARE

A. PRUDENCE When investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing public funds in the District's investment portfolio, the Finance Officer/Treasurer shall act with care, skill, prudence, and diligence under the circumstances then prevailing, that a prudent person acting in a like capacity and familiarity with those matters would use in the management of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the District.

B. DISCLOSURES

The Finance Officer/Treasurer shall disclose any material interest in financial institutions with which he/she conducts the District business.

6. INVESTMENTS AUTHORITY

A. PERMITTED INVESTMENTS

The District Finance Officer/Treasurer is authorized to invest in the following institutions: 1. County pooled funds (California Government Code Section 61730).

2. RabobankMechanics, an FDIC insured Bank, in the accounts

specified by the Board of Directors, including those accounts ending in 0161, 1101, 5783, 7655. Any additional accounts or investments in Rabobank Mechanics require advanced approval by the Board of Directors.

3. Such other financial institutions or securities that may be

specifically approved by the Board of Directors from time to time in compliance with California and Federal law.

4. Local Agency Investment Fund (California Government Code

Section 16429.1) in the accounts approved by the Board of Directors.

B. PROHIBITED INVESTMENTS

The District's Finance Officer/Treasurer shall not invest in any investment not specifically authorized by the Board of Directors, and in no event shall


the Board of Directors authorize any of the following:

C. Inverse floaters, range notes, or interest only strips that are derived from a pool of mortgages.

D. Any security that could result in a zero interest accrual if held to maturity.

E. A state or federal credit union, if a member of the District's Board of

Directors or an administrative officer also serves on the Board of Directors, or any committee appointed by the Board of Directors, or the credit committee or supervisory committee of the state or federal credit union.

F. Any instrument rated lower than Bank investment grade.

C. DIVERSIFICATION Investments, other that investments referenced in paragraphs A. (1) and (2) above, should be diversified to avoid losses that may be associated with any one investment.

7. REPORTS

A. QUARTERLY REPORT

The Finance Officer/Treasurer shall file a quarterly report that identifies the District's investments and their compliance with the District's Investment Policy. The quarterly report shall be filed with the District's auditor and considered by the District's Board of Directors within thirty (30) days after the end of each quarter (i.e., by May 1 August 1, November 1, and February 1) (California Government Code Section 53646). Required elements of the quarterly report are as follows:

1. Type of Investment

2. Institution

3. Date of Maturity (if applicable)

4. Amount of Deposit or Cost of the Security

5. Current Market Value of Securities with Maturity in Excess of Twelve Months (if applicable)

6. Rate of Interest

7. Statement Relating the Report to the Statement of Investment Policy

8. Statement that there are Sufficient Funds to Meet the Next 30 Days' Obligations

9. Accrued Interest (if applicable)

B. ANNUAL REPORT


Prior to February 1 of each year, the Finance Officer/Treasurer shall file and submit an annual report to the District's auditor and Board of Directors which will contain the same information required in the quarterly report.

The annual report will include a recommendation to the Board of Directors to either:

1. Readopt the District's then current annual Investment Policy.

2. Amend the District's then current Investment Policy.

C. LIMITED QUARTERLY REPORT

If the District has placed all of its investments in the Local Agency Investment Fund (LAIF), created by California Government Code Section 16429.1, or in Federal Deposit Insurance Corporation, insured accounts in a bank, in a County investment pool, or any combination of these, the Finance Officer/Treasurer may submit to the Board of Directors and the auditor of the District the most recent statement or statements received by the District from these institutions in lieu of the information required in paragraph 7.A., above. This special reporting policy does not relieve the Finance Officer/Treasurer of the obligation to prepare an annual investment statement as identified in paragraph 7.B., above.

3


Oceano Community Services District 2019‐20 Treasurer's Report ‐ Quarter 2

Account Month Beginning Balance Credits Debits Ending Balance

Quarter Ending

Balance

County of San Luis Obispo Accounts:

Oceano CSD ‐ Water Rev ‐ 31215 Oct‐19 $105.92 $0.58 $0.00 $106.50

(Revenue Bond) Nov‐19 $106.50 $0.00 $0.00 $106.50

Dec‐19 $106.50 $0.00 $0.00 $106.50 $106.50

Oceano CSD ‐ 41005 Oct‐19 $1,610,608.35 $111,449.13 ($3,336.15) $1,718,721.33

Nov‐19 $1,718,721.33 $94,996.49 $0.00 $1,813,717.82

Dec‐19 $1,813,717.82 $395,479.35 ($5.00) $2,209,192.17 $2,209,192.17

Oceano CSD ‐ 41045 Oct‐19 $4.66 $0.03 $0.00 $4.69

(Sanitary District Bond ‐ Paid Off) Nov‐19 $4.69 $0.00 $0.00 $4.69

Dec‐19 $4.69 $0.00 $0.00 $4.69 $4.69

Rabobank Accounts: County Total $2,209,303.36

Public Checking ‐ 1101 Oct‐19 $542,539.03 $492,985.00 ($228,249.70) $807,274.33

Nov‐19 $807,274.33 $109,438.23 ($417,980.53) $498,732.03

Dec‐19 $498,732.03 $506,384.24 ($203,671.66) $801,444.61 $801,444.61

Public Investment Money Market ‐ 5783 Oct‐19 $29,223.24 $4.96 ($25.00) $29,203.20

Nov‐19 $29,203.20 $4.64 ($25.00) $29,182.84

Dec‐19 $29,182.84 $5.12 ($25.00) $29,162.96 $29,162.96

Public Fund CD ‐ 7655 Oct‐19 $24,240.88 $12.12 $0.00 $24,253.00

(Water Fund Deposit) Nov‐19 $24,253.00 $12.54 $0.00 $24,265.54

Dec‐19 $24,265.54 $12.13 $0.00 $24,277.67 $24,277.67

Public Investment Money Market ‐ 0161 Oct‐19 $262,102.11 $44.53 $0.00 $262,146.64

(Public Facilities Fees) Nov‐19 $262,146.64 $41.65 $0.00 $262,188.29

Dec‐19 $262,188.29 $45.97 $0.00 $262,234.26 $262,234.26

Rabobank Total $1,117,119.50

Total $3,326,422.86

Attachment DAgenda Item 8(C) January 22, 2020 - Page 28 of 91


(805) 481-6730 FAX (805) 481-6836




Subject: Agenda Item #8(D) : Consideration of a Recommendation approving Moss, Levy & Hartzheim, LLP as the District Auditors for Fiscal Year 2019-20 through 2021-22 at a cost of $19,875 - $21,290 and receive and file the June 30, 2019 Audited Financial Statements and Independent Auditors Report prepared by Moss, Levy and Hartzheim, LLP

Recommendation

It is recommended that your Board approve the following:

a. Authorize the Board President to approve a professional services agreement to Moss, Levy &Hartizheim in an amount not to exceed $19,875 for fiscal year 2019-20, $20,570 for fiscal year2020-21, and $21,290 for fiscal year 2021-22.

b. Receive and file the June 30, 2019 Audited Financial Statements and Independent AuditorsReport prepared by Moss, Levy and Hartzheim, LLP

Discussion

Pursuant to Special District Law the Board of Directors shall provide for regular audits of the District’s accounts and records. An audit is performed on the accounts and records of Oceano CSD every year by an independent Certified Public Accountant. The audit for June 30, 2019 has been attached as

an addendum to the agenda and the auditor provided a “clean” auditor opinion and there are no findings relating the District’s system of internal controls that need to be addressed. Also

included in the Independent Auditors’ Report on the Financial Statements is a “Management Discussion and Analysis” (MD&A). A MD&A is required by the Governmental Accounting Standards Board (GASB), which considers it to be an essential part of financial reporting for placing the basic financial statements in appropriate operational, economic or historical context. As a result, preparation of the MD&A helps ensure that fiscal issues being addressed by the Board are described to the auditors in the MD&A.

On January 10, 2018 your Board selected Moss, Levy and Hartzheim, LLP as the District Auditors for fiscal year 2016-17 through 2018-19. The audit fees from Moss, Levy, and Hartizheim for the past

three years are summarized below:

Agenda Item 8(D) January 22, 2020 - Page 29 of 91


Firm Fiscal Year Audit Fees Moss, Levy & Hartzheim FY 2016-17

FY 2017-18 FY 2018-19

$18,500 $19,150 $19,820

California Government Code Section 12410.6 requires an agency who submits their audits to the State Controller to change lead auditors every six years. Based on the timing of the last three audits and the thorough understanding of the complex accounting and compliance issues related to special districts, including the accounting related to pensions for GASB 68 for which the current auditor provides GASB 68 journal entries at no extra cost, staff has obtained a proposal for the next three fiscal years. The audit fees are summarized below:

Firm Fiscal Year Proposed Fees Moss, Levy & Hartzheim FY 2019-20

FY 2020-21 FY 2021-22

$19,875 $20,570 $21,290


The State Controller, County Auditor and the Local Agency Formation Commission are provided a copy of the audit and related communication letters.


Funding for audit services has been included in the budget 2019-20 at $19,820 for the preparation of June 30, 2019 audit.

Results

Completion of the annual audit promotes independent evaluation of the District’s accounting records and helps to ensure a well governed community.

Attachment:

• Engagement Letter from Moss, Levy, Hartzheim, LLP

Addendum: • Oceano Community Services District Financial Statements June 30, 2019 and Independent Auditors

Report


Moss, Levy, Hartzheim Engagment Letter - FY 2019-20 - FY 2021-22











(805) 481-6730 FAX (805) 481-6836




Subject: Agenda Item #8(E): Consideration of a recommendation to approve a budget adjustment increasing the project budget for the Oceano Generator Project by $18,425 for change order #2 including design and structural engineering support in the amount of $8,033.50 from Facilities Fund contingencies and $10,391.50 from public facilities reserves

Recommendation

It is recommended that your Board approve a budget adjustment increasing the project budget for the Oceano Generator Project by $18,425 for change order #2 including design

and structural engineering support in the amount of $8,033.50 from Facilities Fund contingencies and $10,391.50 from public facilities reserves.

Discussion

On September 25, 2019 your Board approved a purchase order with MarWal Construction to provide construction management services and inspection services required by the California State Essential Services Act (ESA). The ESA requires special geotechnical engineering and testing of the rebar and concrete pad during the construction of the pad. Once the samples were tested and met the ESA standards the generator was set. The $3,000 in costs for the rebar and concrete tests have been included in the project cost allocation spreadsheet in attachment “B” for Earth Systems.

Change #2 –Addition of an electrical panel to power the fire bay and crew quarters

During the construction period the construction management identified a second change order to the project design that would benefit the District facilities and the cost was obtained from the project contractor for $8,350, which is included in attachment “A.”

Agenda Item 8(E) January 22, 2020 - Page 36 of 91

Oceano Community Services District Board of Directors Meeting

To get the generator to power the fire bay and living quarters of fire personnel an additional electrical panel is required for the emergency power system. The new panel will take the living quarters off of its existing Pacific Gas & Electric (PG&E) meter and derive power from the administration office PG&E meter. This panel will also power the exhaust system in the bay for the fire engines when the generator is operating. This change order required the electrical and structural engineers to design and calculate the load on the generator to ensure the emergency power would be adequate. These costs are included in attachment “A” for Wilson Engineering for $5,850 and Joshua Moody Structural Engineering for $1,225.


Permits for the project were issued by the County Planning Department and the San Luis Obispo County Air Pollution Control District.

Financial Considerations

The proposed change orders would increase project costs from $135,620 to $154,045. The budget adjustment will decrease Facilities Fund contingencies by $8,033.50 and public facilities reserves by $10,391.50 based on the attached allocation of costs spreadsheet.

Results

Replacement of the standby generator will promote a safe community by helping to ensure power to the District, Fire Station and the Sheriff Substation.

Attachments:

A. Change Order Request #2 B. Allocation of Emergency Generator Costs


Attachment AAgenda Item 8(E) January 22, 2020 - Page 38 of 91

12/5/2019

Attachment AAgenda Item 8(E) January 22, 2020 - Page 39 of 91

Oceano Community Services DistrictAllocation of Emergency Generator Costsas of 1/16/2020

EXPENDITURES REVENUESCurrent Budget Total General PFF Grant TotalBudget Adjustment Fund

Design & Permits (Prior Year Budgets) 10,320$ -$ 10,320$ 2,064$ 20% 8,256$ 80% 10,320$ 10,320$

Construction BudgetGenerator - Cummings 38,358$ 38,358$ 7,672$ 20% 30,686$ 80%Concrete Pad - Schwind Electric 15,789$ 15,789$ 3,158$ 20% 12,631$ 80%Electrical Conduit - Schwind Electric 31,418$ 31,418$ 3,142$ 10% 28,276$ 90%Generator Install - Schwind Electric 4,613$ 4,613$ 923$ 20% 3,690$ 80%Inspection & RFI's - Marwal 32,500$ 32,500$ 6,500$ 20% 26,000$ 80%10/23/2019 Change Order #1 - Schwind Electric 2,622$ 2,622$ 524$ 20% 2,098$ 80%Inspection of Concrete - Earth Systems 3,000$ 3,000$ 600$ 20% 2,400$ 80%12/5/2019 Change Order #2 - Schwind Electric 8,350$ 8,350$ 1,670$ 20% 6,680$ 80%Change Orders #2 Design Support - Wilson Engineering 5,850$ 5,850$ 1,170$ 20% 4,680$ 80%Change Orders #2 Structural Support - Joshua Moody 1,225$ 1,225$ 245$ 20% 980$ 80%

Totals 125,300$ 18,425$ 143,725$ 25,603$ 118,122$ 8,238$ $78,705 $38,358 125,300$

Design, Permitting & Construction 135,620$ 18,425$ 154,045$ 27,667$ 126,378$ 18,558$ 78,705$ 38,358$ 135,620$

Revenue Budget Adjustment 8,033.50$ 10,391.50$ 18,425$

Allowable Percent Funded from Public Facilities Fees - Resolution 2017-03 70.5%

89,096.35$

Sheriff Sub-Station Fire Station

Attachment BAgenda Item 8(E) January 22, 2020 - Page 40 of 91


(805) 481-6730 FAX (805) 481-6836



From: Will Clemens, General Manager

Subject: Agenda Item #9(A): Consideration of recommendations to approve a resolution to support Measure A-20 for Oceano Emergency Medical and Fire Protection Services

Recommendation

It is recommended that your Board approve a resolution to support Measure A-20 for Oceano Emergency Medical and Fire Protection Services.

Discussion

On October 23, 2019 your Board approved resolution 2019-13 placing Measure A-20 on the ballot for the March 3, 2020 consolidated election for voters within District boundaries to decide whether to approve an ordinance establishing a special tax for emergency medical and fire protection services. The District's current services are provided by the Five Cities Fire Authority (FCFA) under the terms of a joint powers of authority agreement (JPA) with the cities of Arroyo Grande and Grover Beach originally adopted in 2010 and recently amended on June 12, 2019 (Attached). The two cities considered similar resolutions to support Measure A-20 in January. Grover Beach adopted a resolution on January 6, 2020 and Arroyo Grande adopted a resolution on January 14, 2020.

A Special Meeting of your Board is planned for Saturday, January 25, 2020 at 3 PM to provide information regarding Measure A-20 to the community and to allow for questions from the community to be answered.


The District works closely with the Cities of Arroyo Grande and Grover Beach on issues relating to the FCFA. The FCFA adopted a strategic plan in September 2017 for future services which requires all participating agencies to increase their level of financial support for implementation. The Cities have already identified and increased revenues to fund their share of FCFA costs as required in the JPA.




There is no financial impact as a result of this action. The passage of Measure A-20 is expected to raise approximately $422,000 annually so that the District can fund its share of future FCFA costs as required in the JPA. Currently, the District is drawing down General Fund reserves to fund its share of costs and without the passage of Measure A-20, will cease membership in the JPA as of June 30, 2021. This would require the District to divest of Emergency Medical and Fire Services through the Local Agency Formation Commission process or determine what reduced level of service it could afford within existing funding streams.

Results

Support of Measure A-20 for emergency medical and fire services by the District promotes a safe and well governed community.

Attachments:

Resolution Second Amendment to FCFA JPA


RESOLUTION NO. 2020-______

RESOLUTION OF SUPPORT MEASURE A-20 FOR OCEANO EMERGENCY MEDICAL

AND FIRE PROTECTION SERVICES

WHEREAS, the passage of Measure A-20 will provide critically needed funding to provide 24-hours a day, 7-days a week staffed emergency medical and fire protection services to the Oceano Community, and create a sustainable and reliable source of funding for lifesaving fire and medical emergency services; and

WHEREAS, a 24-hours a day, 7-days a week staffed emergency medical and fire protection services will provide for faster response times, which is imperative for fires that can spread rapidly; and 911 emergency response times, particularly for people suffering serious injuries, such as stroke or heart attack as "every second counts"; and

WHEREAS, the passage of Measure A-20 will improve Five Cities Fire Authority’s ability to provide emergency medical response, fire suppression, hazardous materials response, fire prevention, and education to Oceano residents; and

WHEREAS, funds from Measure A-20 may only be used for providing essential local emergency medical and fire protection services 24 hours a day, 7 days a week; and

WHEREAS, Measure A-20 requires taxpayer protections, including: the establishment of an Independent Citizen Oversight Committee, and mandatory annual audits and public reports to the community for full transparency; and these measures will help ensure that Measure A-20 funds are spent properly; and

WHEREAS, the passage of Measure A-20 will result in Oceano CSD residents and businesses benefitting from having sustainable and reliable emergency medical and fire protection services; and

WHEREAS, the passage of Measure A-20 will enhance the quality of life enjoyed by the local community, as it will provide for staffed 24-hours a day, 7-days a week emergency medical and fire protection services;

NOW THEREFORE, BE IT RESOLVED that the Board of Directors of the Oceano Community Services District supports the passage of Measure A-20 on the general election ballot of March 3, 2020.

ResolutionAgenda Item 9(A) January 22, 2020 - Page 43 of 91

PASSED, APPROVED, and ADOPTED by the Board of Directors of the Oceano Community Services District, State of California, this ___ day of ____________, 2020, by the following vote: AYES: ABSTAIN: NOES: ABSENT: _______________________________________________ President of the Board of Directors ATTEST: _______________________________________________ Board Secretary of the Oceano Community Services District APPROVED AS TO FORM: ______________________________________________ District Counsel

ResolutionAgenda Item 9(A) January 22, 2020 - Page 44 of 91

AttachmentAgenda Item 9(A) January 22, 2020 - Page 45 of 91







(805) 481-6730 FAX (805) 481-6836



From: Nicole Miller, Administration

Via: Carey Casciola, Business and Accounting Manager

Subject: Agenda Item #9(B): Recommendation to review color options for the Old Fire Station at 1687 Front Street and make a final color selection

Recommendation

It is recommended that your Board review color options for the Old Fire Station at 1687 Front Street and make a final color selection.

Discussion

At the December 11, 2019 meeting your Board selected Browder Painting’s bid to repaint the Old Fire Station. The ad hoc committee has selected five color options for the exterior and trim. Browder Painting Co. has provided five larger samples of paint and trim colors, including varying sheen types, for your review and final paint selection.


The County of San Luis Obispo Planning Department reviews Oceano’s use of real property and will help determine any permits that may be required.


The bid from Browder Painting Co. is $12,998. At the December 11, 2019 meeting a budget adjustment was approved for $13,000 from Facilities Fund contingencies leaving the remaining reserve balance at $14,955. The District currently leases a portion of the Old Fire Station to The Village Group for $975.

Results

Once color and sheen selection is complete, staff can move forward with determining the start date. The District will also notify the Village Group, who are tenants of the building, as to when work will commence.



(805) 481-6730 FAX (805) 481-6836




Subject: Agenda Item #9(C): Consideration of recommendations to approve a resolution reducing the Franchise fee payment from South County Sanitary Inc. as the Board deems appropriate

Recommendation

It is recommended that your Board approve a resolution reducing the Franchise fee payment from South County Sanitary Inc. as the Board deems appropriate.

Discussion

South County Sanitary Service Inc. (SCSS) provides Solid Waste, Recycling and Green Waste collection services for the community of Oceano pursuant to a franchise agreement dated July 14, 2010, which was subsequently amended on July 29, 2016. On June 26, 2019, garbage rates increased 10.1%. The following is a brief summary of the primary components of the increase, which were explained in greater detail in a report presented to your Board at that meeting:

• 4.5% increase for costs of recycling via material recovery facilities. The international market for recyclable materials has been significantly impacted when China began restricting recyclables in 2017 and banned them altogether in 2018.

• 2.2% increase for truck depreciation. • 1.6% increase for investments in food and green waste recycling. • 1.8% increase for all other costs including labor, fuel, ongoing maintenance, and other pass-through

costs.

In addition, the annual rate increase of 1.7% has gone into effect as of January 1, 2020. The District receives franchise fees from SCSS, which are 10% of gross revenues. The cumulative rate increase since June 2019 is 11.8%, which will increase District revenues 1.18% (11.8% x 10%). To eliminate the impact of the 2020 rate increase, your Board would need to reduce franchise fees by 1.7%.

Based on Board discussion at the December 11, 2019 meeting the attached tables show the January

2020 garbage rates with the franchise fee reduction ranging from 1%-5%. Based on the monthly rate for a residential customer with a 32-gallon waste wheeler (the smallest bin) the savings per month range from $0.16



to $0.78. The savings increase for the larger bins offered to residential and commercial customers and those decreases are in “Exhibit A” showing customer bill impact.

While discussing a possible decrease in customer charges by decreasing franchise fees, your Board may

also wish to consider existing garbage fund reserves. Reserves for fiscal year 2019/20 are estimated to increase to approximately $350,000. It is estimate that a decrease of 1.7% in franchise fees will have no impact on reserves since the 2019/20 operating budget was adopted with an operating surplus that would essentially be eliminated with a 1.7% decrease. The following charts illustrate the impact on reserves that should be anticipated if the Board desires to reduce franchise fees greater than 1.7%.

If your Board chooses to reduce franchise fees, direction is needed so that staff and legal counsel can complete the attached resolution and notify SCSS to process the reduction to the customers for their next garbage bill.


N/A


The District receives franchise fees and other income of approximately $110,000 per year from SCSS, which funds programs associated with illegal dumping and community clean-up efforts.

Oceano Community Services DistrictGarbage Fund Rate Reduction ScenariosReseve Impact Estimates

11-Dec-19

Existing Franchise Fees = 10%

Annual 3-Year 5-YearReduction Effective Reserve Reserve ReserveScenarios Fee % Impact Impact Impact

-1% 9%-1.7% 8.3% -$ -$ -$ -2% 8% (3,022)$ (9,066)$ (15,111)$ -3% 7% (13,096)$ (39,288)$ (65,480)$ -4% 6% (23,170)$ (69,509)$ (115,849)$ -5% 5% (33,244)$ (99,731)$ (166,218)$



Results

Reducing garbage franchise fees saves customers money on their garbage bill and promotes a well governed community.

Attachments:

• Exhibit “A” – Customer Bill Impact Estimates • Resolution


Oceano Community Services DistrictGarbage Fund Franchise Fee Reduction ScenariosCustomer Bill Impact Estimates

RESIDENTIAL

Service Description 1‐Jan‐20 1% 1.7% 2% 3% 4% 5%

Monthly Bill Reduction Reduction Reduction Reduction Reduction Reduction

32 Gallon Waste Wheeler $17.23 $17.07 $16.96 $16.91 $16.76 $16.60 $16.44



Two 64 Gallon Waste Wheelers $57.26 $56.73 $56.37 $56.21 $55.69 $55.17 $54.65

One 64 & One 96 Gallon Waste Wheeler $74.51 $73.84 $73.36 $73.16 $72.48 $71.80 $71.13

Two 96 Gallon Waste Wheeler $91.76 $90.93 $90.34 $90.09 $89.26 $88.43 $87.59

COMMERCIAL/ APARTMENTS/ TRIPLEX/ DUPLEX



1 yd Dumpster (1 Pickups Per Week) $84.29 $83.53 $82.99 $82.76 $81.99 $81.23 $80.46










1.5 yd Dumpster (1 Pickups Per Week) $100.64 $99.72 $99.08 $98.81 $97.89 $96.98 $96.06


























3 yd Dumpster (7 Pickups Per Week) $1,154.22 $1,143.73 $1,136.38 $1,133.23 $1,122.74 $1,112.25 $1,101.75

Exhibit AAgenda Item 9(C) January 22, 2020 - Page 55 of 91





















COMMERCIAL



1 Can (1 Pickup Per Week) $24.29 $24.07 $23.91 $23.85 $23.63 $23.40 $23.18










Exhibit AAgenda Item 9(C) January 22, 2020 - Page 56 of 91

OCEANO COMMUNITY SERVICES DISTRICT RESOLUTION NO: 2020 - __

A RESOLUTION OF THE BOARD OF DIRECTORS

REDUCING THE FRANCHISE FEE PAYMENT FROM SOUTH

COUNTY SANITARY FROM 10% TO ____%

WHEREAS, South County Sanitary operates its solid waste operations inside of the Oceano Community Services District (the District) as a Franchisee of the District and said operation is governed by a Franchise Agreement between the District and South County Sanitary ; and

WHEREAS, the District wishes to reduce the Franchise Fee payment set forth in said agreement from

10% to ___%; and,

NOW, THEREFORE, BE IT RESOLVED AND ORDERED by the Board of Directors of the Oceano Community Services District, as follows:

1. The current 10% Franchise Fee set forth in the Agreement is suspended until further action of the Board of Directors.

2. Subject to further action of the Board, the Franchise Fee shall be ___% effective January 22, 2020.

PASSED AND ADOPTED by the Board of Directors of the Oceano Community Services

District on January 22, 2020 by the following vote:

AYES: NOES: ABSTAIN: ABSENT:

_______________________________ President, Board of Directors

of the Oceano Community Services District

Attachment - ResolutionAgenda Item 9(C) January 22, 2020 - Page 57 of 91

ATTEST: _______________________________ Board Secretary of the Oceano Community Services APPROVED AS TO FORM:

________________________________ Jeffrey A. Minnery, District Counsel

Attachment - ResolutionAgenda Item 9(C) January 22, 2020 - Page 58 of 91


(805) 481-6730 FAX (805) 481-6836




Subject: Agenda Item #9(D): Review and Consideration of a letter to State Parks regarding the Public Works Plan (PWP) Project Proposed Concepts and Options relating to the Oceano Dunes State Vehicular Recreation Area (ODSVRA).

Recommendation

It is recommended that your Board authorize the President to submit the attached comment letter to State Parks regarding the PWP Project Concepts and Options relating to the ODSVRA.

Discussion

In December 2019, State Parks held two public meetings to discuss options relating to the PWP for the ODSVRA. See https://www.oceanodunespwp.com/en/meetings.

State Parks is asking for public comment on the PWP Proposed Project Concepts and Options. These comments are due by January 24, 2020. Attached is a draft comment letter for your Board's consideration.

One of the options being considered is to close the Grand Ave. entrance to vehicle traffic. This would route all vehicle traffic through the Pier Ave. entrance to the ODSVRA which would cause undue impacts to services provided by the Oceano Community Services District (OCSD).


State Parks is the lead agency on preparing the PWP and the related Environmental Impact Report.


There is no direct financial impact as a result of this action. The attached comment letter opposes any option in the State Parks PWP that uses Pier Ave. as the sole vehicle entrance to the ODSVRA. This option would increase costs to the District relating to illegal dumping and potential damage to water and sewer infrastructure.


https://www.oceanodunespwp.com/en/meetings


Board of Directors Meeting

Results

Providing comments to State Parks on the position of the OCSD relating to the Public Works Plan for the ODSVRA promotes a well governed and fiscally responsible community.

Attachment:

• Draft comment letter



(805) 481-6730 FAX (805) 481-6836

January 22, 2020

Via email: [email protected] Subject: Comments on the Proposed Project Concepts and Options for the Oceano Dunes State

Vehicular Recreation Area Public Works Plan.

To whom it may concern,

The Oceano Community Services District (OCSD) provides residents and businesses in Oceano with water, wastewater collection, trash and recycling, fire and emergency services, and street lighting services. After reviewing the proposed Public Works Plan for the Oceano Dunes State Vehicular Recreation Area (ODSVRA), the OCSD submits the following comments. The Plan needs to address the impacts of operation of the ODSVRA on the community of Oceano, which include the following: Increased trash and illegal dumping. Some visitors to the ODSVRA use the streets of Oceano as a dumping ground for unwanted large items such as furniture and have been observed dropping litter from their vehicles as they exit the park. In addition, park visitors set off illegal fireworks in town on the 4th of July, leaving debris in the streets. The OCSD must collect and dispose of this garbage. Increased operational and safety impacts to District staff. The District’s sewer lift station is located midway along Pier Avenue. When staff need to enter the wells for maintenance, access is sometimes blocked by vehicles waiting in line at the ODSVRA entrance. In addition, noxious exhaust fumes from idling vehicles in the line pose a health hazard to staff working in the wells’ confined spaces. Damage and risk to critical water and sewer infrastructure. A fire hydrant on Pier Ave located adjacent to an ATV rental store is repeatedly knocked over by vehicles improperly exiting the store, and the OCSD has had to replace this fire hydrant frequently. Maintenance of the wet well on Pier Avenue is needed more often due to clogging from improper items disposed of in campground toilets. And the 2019 Local


mailto:[email protected]


Hazard Mitigation Plan prepared for the OCSD identified operation of the Pier Avenue entrance as increasing the risk of sea level rise and tsunamis to critical infrastructure including the lift station.

Further, the PWP proposes to close the Grand Avenue vehicle entrance. With no new, alternative entrance currently under consideration, this would push all ODSVRA traffic through the Pier Avenue entrance. The adverse impacts noted above would be exacerbated. Therefore, the OCSD opposes this proposal and recommends that State Parks perform an entrance study.

Thank you for your consideration of these comments.

Sincerely,

Linda Austin, President



(805) 481-6730 FAX (805) 481-6836




Subject: Agenda Item #9(E): Review and Consideration of a letter to the City of Pismo Beach regarding their Notice of Preparation of a Draft Environmental Impact Report for the Central Coast Blue Project

Recommendation

It is recommended that your Board consider comments to and authorize the Board President to execute a letter to the City of Pismo Beach regarding their Notice of Preparation of a Draft Environmental Impact Report for the Central Coast Blue Project.

Discussion

Attached is the Notice of Preparation (NOP) of a Draft Environmental Impact Report (EIR) and project description for the Central Coast Blue Project from the City of Pismo Beach. Also attached is a draft comment letter for your Board's consideration.

The primary purpose of comments on the NOP is to address the scope and context of the EIR. Comments on the NOP are not intended to serve the purpose of commenting on the proposed Project, nor to advocate whether you believe that the proposed project is desirable or not. The attached draft comment letter seeks to address District services that could be affected and impacts on the community.


The City of Pismo Beach is the lead agency on preparing the EIR. Other agencies whose approval is potentially required include the United States Bureau of Reclamation, the United States Army Corps of Engineers, the Federal Aviation Administration, the Federal Railroad Administration, the California Department of Fish and Wildlife, the California Coastal Commission, the California Department of Parks and Recreation, the State Water Resources Control Board, the California Department of Water Resources, the Central Coast Regional Water Quality Control Board, the County



of San Luis Obispo, the Cities of Arroyo Grande and Grover Beach, and the South San Luis Obispo County Sanitation District.


There is no financial impact as a result of this action.

Results

Providing comments to the NOP promotes a well governed and safe community.

Attachments:

• Draft comment letter • Notice of Preparation of a Draft Environmental Impact Report for the Central Coast Blue Project • Project Description



(805) 481-6730 FAX (805) 481-6836

January 22, 2020

City of Pismo Beach Community Development Department, Planning Division Attn: Matthew Downing, AICP, Planning Manager 760 Mattie Road Pismo Beach, CA 93449 Subject: Comments on the scope and content of the environmental information included in the Draft

Environmental Impact Report (EIR) for the Central Coast Blue Project.

Dear Mr. Downing,

This letter is submitted by the Board of Directors of the Oceano Community Services District (District) in response to the Notice of Preparation of a Draft EIR for the Central Coast Blue Project (Project). We understand that the City of Pismo Beach will serve as the lead agency under the California Environmental Quality Act (CEQA).

The District supports the inter-agency regional project development efforts for the Project with the South San Luis Obispo County Sanitation District and the cities of Arroyo Grande, Grover Beach, and Pismo Beach. The District recognizes the importance of a transparent and thorough evaluation of the environmental impacts of the Project, including how those impacts may affect the community of Oceano. We understand that Pismo Beach will be working with several state and local agencies during the preparation and review of the proposed EIR. In addition to the County of San Luis Obispo, which has jurisdiction over land use planning and street and road maintenance for Oceano, the District's services could be impacted by the Project.

The District is responsible for fire and emergency services, which we provide through the Five Cities Fire Authority. We are also responsible for enterprise functions including water, wastewater collection, and solid waste and recycling. Lastly, the District has the jurisdictional authority to provide parks and recreation but lacks any funding to implement any such programs.

At a minimum, the EIR should address any environmental impacts to any one of the services provided by our District, both during the construction period and during the operational period of the Project. The most likely environmental impact of the Project is the impact to the groundwater basin used by the Project participants and the District to provide water supply to Oceano. We request that the evaluation of impacts to the groundwater

Attachment - Draft Comment LetterAgenda Item 9(E) January 22, 2020 - Page 65 of 91


basin be sufficient to determine the optimal locations for groundwater recharge in the basin and sufficient to evaluate any degradation or potential degradation to the water quality of the basin. In addition, we feel the EIR should include co-equal analysis of site alternatives for the Project.

We thank you for your leadership on this regional effort to implement a groundwater recharge project in the south county.

Sincerely,

Linda Austin, President

Attachment - Draft Comment LetterAgenda Item 9(E) January 22, 2020 - Page 66 of 91

City of Pismo Beach Public Works Department 760 Mattie Road Pismo Beach, California 93449 T: (805) 773-4658 www.pismobeach.org

Notice of Preparation TO: Responsible Agencies & Interested Parties SUBJECT: NOTICE OF PREPARATION OF A DRAFT ENVIRONMENTAL IMPACT REPORT NOTICE IS HEREBY GIVEN that the City of Pismo Beach will be the Lead Agency and will prepare an Environmental Impact Report (EIR) for the project identified below. We need to know the views of your agency as to the scope and content of the environmental information that is germane to your agency’s statutory responsibilities in connection with the proposed project. Your agency will need to use the EIR prepared by our agency when considering your permit or other approval for the project, if applicable. The public review and comment period for this Notice of Preparation begins Friday, December 20, 2019 and ends Tuesday, February 4, 2020 at 5:00 p.m. A detailed project description with location maps are contained in the attached materials and are available online at https://centralcoastblue.com/recent-updates. No Initial Study is attached because the lead agency has already determined that an EIR is clearly required for the project and is therefore not required to prepare an Initial Study per CEQA Guidelines Section 15063(a). Because the project is of regional and areawide significance, a scoping meeting will be held by the City of Pismo Beach on Wednesday, January 22, 2020, at 6:00 p.m. at the City of Pismo Beach Council Chamber, located at 760 Mattie Road, Pismo Beach, California 93449. Project Title: Central Coast Blue Project

State Clearinghouse #: Pending

Project Location: The project would be located on several properties in the cities of Grover Beach and Pismo Beach in San Luis Obispo County and portions of unincorporated San Luis Obispo County, including the community of Oceano, which is a census-designated place. A specific map of the known project components is attached and available online at https://centralcoastblue.com/recent-updates. Additional project components will be located at yet to be determined locations within the cities of Grover Beach and Pismo Beach in San Luis Obispo County and portions of unincorporated San Luis Obispo County.

Project Sponsors: City of Pismo Beach, Public Works Department 760 Mattie Road, Pismo Beach, CA 93449 South San Luis Obispo County Sanitation District 1600 Aloha Place, Oceano, CA 93445

Brief Project Description: The proposed project is a regional advanced purified water project intended to enhance supply reliability by reducing the Santa Maria Groundwater Basin’s (SMGB) vulnerability to drought and seawater intrusion. The project would involve injection of advanced purified water into the SMGB via a series of injection wells installed at various locations to create a seawater intrusion barrier. Water for the project would be sourced from two of the region’s wastewater treatment facilities - the Pismo Beach Wastewater Treatment Plant (WWTP) and the South San Luis Obispo County Sanitation District (SSLOCSD) WWTP. Prior to injection to the SMGB, water would be treated to an advanced level of purification at a proposed Advanced Treatment Facility (ATF) constructed at a yet to be determined location in the northern portion of the SMGB. The proposed ATF would treat a combination of flows from the Pismo Beach WWTP and flows from the SSLOCSD WWTP for injection in the SMGB and/or for agricultural irrigation. In addition to the ATF, project components include an advanced purified water storage tank, an equalization tank, a pump station, distribution pipelines, injection wells, monitoring wells, and one new production well. The project would alter the pumping regime of existing, operational production wells in the project area and also would include construction of one new production well to optimize groundwater production in the area. Potential environmental effects include but are not necessarily limited to, impacts related to air quality, biological resources, cultural and tribal cultural

Attachment - NOP of Draft EIR for CCBAgenda Item 9(E) January 22, 2020 - Page 67 of 91

Attachment - NOP of Draft EIR for CCBAgenda Item 9(E) January 22, 2020 - Page 68 of 91

City of Pismo Beach Central Coast Blue Project

Project Description 1

Project Description

1. Project Title Central Coast Blue

2. Lead Agency Name and Address City of Pismo Beach Community Development Department, Planning Division 760 Mattie Road Pismo Beach, California 93449

3. Contact Person and Phone Number Matthew Downing, AICP, Planning Manager (805) 773-7044

4. Background and Project Overview The cities of Pismo Beach, Grover Beach, and Arroyo Grande and the Oceano Community Services District (OCSD) obtain water from a combination of three sources: the California State Water Project, Lopez Reservoir, and local groundwater. Each of these sources is highly variable, with supply fluctuations on the order of thousands of acre-feet per year over the past decade (City of Pismo Beach 2016). The primary source of groundwater for these agencies is from the Northern Cities Management Area (NCMA) of the Santa Maria Groundwater Basin (SMGB). The cities of Pismo Beach, Grover Beach, and Arroyo Grande and OCSD (NCMA agencies) manage groundwater extraction in their portion of the basin to protect long-term sustainable use and to prevent seawater intrusion.

Historically, elevated fresh water levels along the coastline and natural outflow to the ocean have prevented seawater from intruding into the groundwater basin. However, groundwater elevations along the coastline have dropped due to changing climatic conditions, including more frequent periods of extended drought resulting in reduced inflow into the groundwater basin and increased demands on groundwater supplies resulting in a higher rate of groundwater extraction. These lower levels reduce the flow of freshwater out toward the ocean, which reduces the effectiveness of groundwater as a barrier to seawater. If conditions worsen, seawater will draw toward the freshwater zone of the aquifer, contaminating it with elevated salt concentrations.

Central Coast Blue (herein referred to as the “proposed project” or “project”) is a regional advanced purified water project intended to enhance supply reliability by reducing the SMGB’s vulnerability to drought and seawater intrusion. The project is a multi-agency collaboration between the City of Pismo Beach, the South San Luis Obispo County Sanitation District (SSLOCSD), and the other NCMA agencies. The project would involve injection of advanced purified water into the SMGB via a series

Attachment - Project DescriptionAgenda Item 9(E) January 22, 2020 - Page 69 of 91


2

of injection wells, installed at various locations in the SMGB, to develop a seawater intrusion barrier. Water for the project would be sourced from two of the region’s wastewater treatment facilities - the Pismo Beach Wastewater Treatment Plant (WWTP) and the SSLOCSD WWTP. Prior to injection to the SMGB, water would be treated to an advanced level of purification at a proposed Advanced Treatment Facility (ATF) constructed at a yet to be determined location in the NCMA. The proposed ATF would treat a combination of flows from the Pismo Beach WWTP and flows from the SSLOCSD WWTP for injection in the SMGB and/or for agricultural irrigation. The blend of source water treated at the ATF would depend on the amount of water available from each WWTP, the water quality characteristics of each of the water flows, the production capacity of the ATF, and the demand for advanced purified and/or irrigation water. The amount of water from each WWTP treated at the ATF would be adjusted periodically based on operational needs.

Because the location, engineering, and construction details are not known for several of the project components at this time, this analysis evaluates the environmental impacts of those improvements at a programmatic level. Once these details are known, project activities will be examined in light of this EIR to determine what, if any, additional CEQA documentation needs to be prepared. However, this analysis evaluates some of the proposed project components, including the injection wells, at a more detailed, project-specific level because they would be constructed in the near-term and the construction details, locations, and component specifications are generally well-known at this time. Project components are described in detail below under Project Features.

Project Objectives The objectives for the proposed Central Coast Blue project are as follows:

A. Produce advanced purified water of a quality that can safely be used to augment groundwater supply while maintaining or improving existing groundwater quality

B. Create a sustainable, drought-resistant, local water supply and improve water supply reliability for southern San Luis Obispo County

C. Provide a new source of recharge to the SMGB to protect the basin from degradation via seawater intrusion

D. Reduce wastewater discharges to the ocean and maximize utilization of local water supplies E. Facilitate continued water resources collaboration in the NCMA

5. Project Location The project area is in the cities of Grover Beach and Pismo Beach, and portions of unincorporated San Luis Obispo County, including the community of Oceano, which is a census-designated place. Figure 1 shows the regional location of the project site, which is approximately seven miles south of the city of San Luis Obispo. The project site is regionally accessible from U.S. Highway 101 (U.S. 101) and locally accessible from California State Route (SR) 1. Figure 2 shows the boundaries of the NCMA agencies overlain on an aerial view of the project site and the surrounding area. The project site extends from Pismo Beach in the north, through Grover Beach, to unincorporated San Luis Obispo County and Oceano in the south. The total project area measures approximately nine miles north to south. With the exception of the existing production wells that would be used for the proposed project and one new production well likely in Grover Beach, all of the known project components would be located within one mile of the coast. Some project components (such as




Figure 1 Regional Location



4

Figure 2 General Project Location




irrigated lands described in detail below) may be located further inland, but the precise location of those components is unknown at this time.

6. Project Sponsors’ Name and Address City of Pismo Beach Public Works Department 760 Mattie Road Pismo Beach, California 93449

South San Luis Obispo County Sanitation District 1600 Aloha Place Oceano, California 93445

7. General Plan Designation See Figure 3 for General Plan land use designations of the known project components.

8. Description of Project The proposed project consists of an ATF at a yet to be determined location in the NCMA, an advanced purified water storage tank, an equalization tank, a pump station, distribution pipelines, injection wells, monitoring wells, and one new production well. The project would alter the pumping regime of existing, operational production wells in the project area and also would include construction of one new production well to optimize groundwater production in the area. The project area, which is located approximately seven miles south of the city of San Luis Obispo, spans approximately nine miles to allow for appropriate spacing of the proposed injection wells. From west to east, the project site is approximately one mile wide or less (extending inland from the coast) for known project components other than the new production well. Some conceptual project components may be located further inland, as described in more detail below under Project Features.

The total acreage and parcel numbers for many of the project components, including the water distribution pipelines, injection wells, monitoring wells, the ATF, and potential agricultural irrigation areas, are either preliminary or not known at this time. The preliminary locations of known project components and locations of the existing production wells are shown on Figure 4. The location of the ATF is unknown at this time, but it would occupy approximately two acres of available land in the NCMA. Additional project components will include distribution pipelines to transport treated wastewater to the ATF, advanced purified water distribution pipelines to transport water from the ATF to the injection wells, and potentially agricultural irrigation and pipelines to transport water to those irrigated lands; however, those locations are unknown at this time.



6

Figure 3 Project Site General Plan Land Use Designations




Figure 4 Preliminary Project Components



8

Site Characteristics The injection wells and associated monitoring wells would be located within several publicly-owned properties including the Coastal Dunes RV Park and Campground, Pismo State Beach, and the SSLOCSD WWTP property.

The locations of the ATF, equalization basin, storage tank, pump station, water distribution pipelines, and new production well are not known at this time. The new production well would be owned and operated by the City of Pismo Beach and likely would be located in Grover Beach on land leased or acquired by the City of Pismo Beach. The characteristics of the new production well would be similar to those of the City’s existing production wells. It is likely that the ATF, equalization basin, storage tank, and pump station would be located east of SR 1 in Grover Beach. Water distribution pipelines would likely be located within the public rights-of-way along the majority of the pipeline alignments. In addition, because the ATF and associated facilities would likely be located in Grover Beach, several water distribution pipelines would be constructed under SR 1 and the Union Pacific Railroad tracks.

The General Plan land use designations for known preliminary component locations are shown in Figure 3. Most of the project components would be located in or adjacent to public rights-of-way, generally parallel to SR 1.

Project Features The proposed project consists of an ATF at a yet to be determined location in the NCMA, an advanced purified water storage tank, a pump station and distribution pipelines, injection wells, monitoring wells, and increased pumping from existing production wells. Each of these components of the proposed project is described below. While the project would lead to increased groundwater pumping over recent rates, groundwater pumping will still be below historical (i.e., 2009) levels.

Advanced Treatment Facility The ATF would treat flows from the Pismo Beach WWTP and the SSLOCSD WWTP. The proportion of the ATF source water that each of these flows comprises would be determined based on the operational needs of the project and the need for supplemental water for the participating agencies, among other factors.

The Pismo Beach WWTP currently treats an average of 0.9 million gallons per day (mgd) of wastewater to a secondary treatment level. The existing treatment process starts with a bar screen to remove debris. After the bar screen, the water flows through oxidation ditches. The oxidation ditches operate under anoxic and aerobic conditions to remove nitrogen/ammonia from the water. Next, the water flows to a clarifier, where solids are settled out. At this point, the water has been treated to a non-potable level and can be disinfected in the chlorine contact basins and conveyed to the SSLOCSD WWTP where it is discharged to the ocean through the existing ocean outfall, which is shared with SSLOCSD.

The existing treatment process at the SSLOCSD WWTP is slightly different than the process described above for the Pismo Beach WWTP. The SSLOCSD WWTP currently treats approximately 2.4 mgd of wastewater to a secondary level. Similar to the process at the Pismo Beach WWTP, the first step of treatment is a bar screen that physically separates solids and large debris from the flow. After the bar screen, the water is sent to the grit removal stage to remove sand, silt and grit. Then, the wastewater flows to the primary clarifier, which uses gravity to separate solid compounds out of the water. Next, the wastewater flowing out of the primary clarifier goes to the fixed film reactor.




The fixed film reactor is a large circular basin filled with a network of plastic media. Microorganisms grow on the plastic media. As the wastewater runs through the media, the microorganisms consume the dissolved organic matter in the water as their food supply. After the water leaves the fixed film reactor, it then goes to the secondary clarifier. The secondary clarifier performs the same process as the primary clarifier, using gravity to separate out any remaining solids or new solids that may have formed during the fixed film reactor stage of treatment. At this point, the water has been treated to a non-potable level and can be disinfected in the chlorine contact chambers before being discharged to the ocean through the existing ocean outfall.

Advanced treatment would add several additional treatment steps to further purify recycled water from the Pismo Beach WWTP and SSLOCSD WWTP. Additional treatment steps include microfiltration/ultrafiltration (MF/UF), reverse osmosis (RO), and ultraviolet (UV) disinfection with advanced oxidation. The first step in the advanced treatment process is MF/UF, which filters the wastewater that has already undergone secondary treatment through a physical membrane barrier with very small pores to remove turbidity, particles, and microorganisms. These pores range in size depending on the level of filtration; MF typically has a pore diameter of 0.1 micrometer (μm) and UF typically has a pore diameter of 0.01 μm. For comparison, 0.1 μm is 1/600th the diameter of a human hair. In comparison, the smallest size of bacteria is approximately 0.3 μm, which is 1/300th the diameter of a human hair. MF/UF removes very small particles and prepares the water for the next step of RO. The MF/UF membranes are permeable and retain suspended particulates, including bacteria, protozoa, and some organics and viruses, thereby removing these constituents from the water. The MF/UF membranes are designed to adapt to water quality conditions and flow with automatic adjustments to the filter system, which saves energy, chemical use, and manpower. Figure 5 provides an illustrated example of the MF process. The UF process is similar to that of the MF process; however, more organics and viruses are removed in the UF process due to the smaller pore size.

From the MF component, the water travels downstream to the RO component. RO removes dissolved solids, organic contaminants, sugars, salts, and sub-micron particles and pathogens, including viruses, bacteria, and protozoa, from the water. It also uses a physical membrane barrier with pore sizes that range from 0.02 μm to 0.0001 μm depending on the membranes used. Figure 6 provides an illustrated example of the RO process. Unlike MF/UF, RO produces a clean water stream (permeate) and a waste water stream (concentrate). This means that not all the water is recovered from this process as permeate water. A percentage of the water becomes concentrate (typically about 10 to 30 percent), which contains a higher concentration of the dissolved particles than were in the source water flow. This concentrate will ultimately be discharged to the ocean through the existing ocean outfall that currently receives all the flow from the Pismo Beach and SSLOCSD WWTPs. While the concentrate stream is more concentrated than typical drinking water, it is still much less salty than ocean water or concentrate from ocean desalination facilities. As discussed in the RO Concentrate Sampling Plan Results prepared by Carrollo Engineers (2018), the large majority of constituents present in RO concentrate produced using treated wastewater from the City’s WWTP will not cause exceedances of the City of Pismo Beach’s National Pollutant Discharge Elimination System permit effluent concentration limits. Although testing determined that Total Residual Chlorine concentrations would exceed the effluent concentration limits, the ATF would include a process to neutralize the chlorine, which would resolve the exceedance of Total Residual Chlorine concentrations. Testing of RO concentrate produced using the treated wastewater from the SSLOCSD WWTP has not been performed because the advanced treatment pilot plant was located at the Pismo Beach WWTP and the SSLOCSD WWTP effluent water quality is expected to change with implementation of the planned SSLOCSD WWTP Redundancy Project.



10

After the dissolved solids have been removed, the water that passed through the RO membranes is of very high quality and is ready for the UV disinfection/advanced oxidation treatment process. The UV disinfection component provides additional treatment by oxidizing trace chemical pollutants that may have passed through the MF and RO stages. Advanced oxidation uses UV light and oxidation chemicals to initiate a series of chemical reactions that break down compounds in the water that cannot be broken down by biological treatment or removed using the membranes. Figure 7 provides an illustrated example of the UV/advanced oxidation treatment process.

In addition to the advanced treatment components described above, the ATF would include staff support facilities that may include office space, a locker room, restrooms, file storage, a break room and kitchen, chemical storage and feed facilities, and an emergency power generator. The ATF would occupy approximately 0.85 acres, and the support facilities would occupy approximately 0.14 acres.

Equalization Basin, Storage Tank, and Pump Station The project would involve construction of an equalization storage basin at a yet to be determined location in the NCMA, providing greater capacity and operational flexibility to the ATF. The 1.5 million gallons of storage is required for the secondary treated effluent from the Pismo Beach and SSLOCSD WWTPs prior to advanced purification in the ATF, allowing operations staff to address fluctuations in flow from the WWTPs without impacting the flow rate to the ATF. The storage would occupy approximately 7,500 square feet of area on land adjacent to the ATF in the NCMA.

Following advanced purification in the ATF, water would travel to the proposed advanced purified water storage tank and then to the pump station, where advanced purified water would be pumped to the injection wells. The advanced purified water storage tank would provide operational flexibility and help to maintain a consistent flow in the advanced purified water pump station. The storage tank is anticipated to be located below ground on land adjacent to the ATF in the NCMA. The pump station would occupy approximately 0.03 acre and would be located adjacent to the ATF. A conceptual drawing of the overall treatment process that would be used is shown in Figure 8.

Water Distribution Pipelines Two sets of water distribution pipelines would be installed. One set would transport treated water from the Pismo Beach and SSLOCSD WWTPs to the proposed ATF, and the other set would transport advanced purified water from the proposed ATF to several groundwater injection wells located throughout the NCMA. While the alignments of those pipelines are unknown at this time, they are expected to generally be located in existing rights-of-way, such as beneath public streets, and in previously disturbed areas in the NCMA. Construction methods for the proposed pipelines would predominantly involve open trenching, with jack and bore or horizontal directional drilling methods used as needed.

Groundwater Injection and Monitoring Wells Seven injection wells would be installed at five locations throughout the NCMA, which are shown in Figure 4. The injection wells would be located generally within one-half mile of the coast. Each injection well would be capable of injecting approximately 200 to 300 acre-feet per year (AFY). The advanced purified water would be injected at a depth of approximately 200 to 600 feet below ground surface. Each injection well would be accompanied by up to two monitoring wells equipped to measure and monitor water level and water quality. Injection wells would include aboveground




Figure 5 Conceptual Microfiltration Process Detail



12

Figure 6 Conceptual Reverse Osmosis Process Detail




Figure 7 Conceptual Ultraviolet/Advanced Oxidation Process Detail



14

Figure 8 Conceptual Advanced Treatment Process



piping and infrastructure such as electrical panels, control panels, and storage facilities. Maintenance of the injection wells would involve monitoring of pressures, frequent inspections, cleaning out the well casings, and removing microbial build‐up once every two years.

Production Wells Several existing production wells would be available for extraction of the injected advanced purified water. The project would involve increased pumping at these wells but would not involve modification of these existing production wells or any associated ground disturbance. Figure 4 shows the existing production wells that are anticipated to be used. One new production well will need to be constructed to optimize the system, but the precise location of that new well has not been determined at this time. The new production well likely would be located in the Grover Beach, likely on land leased or acquired by the City of Pismo Beach. The characteristics of the new production well would be similar to those of the City’s existing production wells.

Agricultural Irrigation A portion of the advanced purified water may be used for agricultural irrigation. Potential agricultural irrigation areas include agricultural lands located generally south of Oceano. If agricultural irrigation is included in the proposed project, additional distribution pipelines would be constructed to carry advanced purified water from the ATF to the irrigated lands.

Grading and Construction Construction of the known project components identified above under Project Features is anticipated to last approximately 24 months. During the construction period, portions of the project area would be closed to public access.

The location of the ATF would likely need to be graded to provide a level base for the ATF and appurtenant structures, to provide site access, and to provide appropriate stormwater drainage. If the location is within a designated 100-year Special Flood Hazard Area, site preparation and grading for the ATF and appurtenant structures would also include necessary improvements to provide adequate flood protection, which may include raising structural foundations above the base flood elevation.

It is assumed that a moderate amount of existing soil would be excavated and exported, and a moderate amount of clean engineered fill or another suitable substrate would be imported to provide geotechnical stability for the ATF and appurtenant structures. No substantial soil import or export beyond that required for geotechnical improvements is anticipated. Excavation depth is not anticipated to exceed 20 feet for any of the project components other than the injection wells, which would be excavated to a depth of up to 600 feet.

Construction of the project components is not expected to result in removal of large numbers of mature trees. Also, the project would include planting trees for accenting, screening, or other purposes as space allows, with a preference for native trees.

Injection and Monitoring Wells Construction activities would occur from 7:00 a.m. to 7:00 p.m., Monday through Friday with the exception of a two to three-week period during which well drilling activities would occur for 24 hours per day, Monday through Sunday. Temporary lighting would be required during 24-hour



City of Pismo Beach Central Coast Blue

16

drilling activities and would consist of several lights adhered to the mast of the drill rigs that would be pointed downward and portable lights that would be placed around the working areas.

Construction equipment would include a drilling rig, a gradall forklift, four diesel-powered generators, a compressor, and a backhoe. Additional construction components would include a pipe trailer, water storage tanks, a tool trailer for supply storage, a mud tank, and a roll-off bin. Construction equipment would be up to 50 feet in height. Approximately seven construction workers would be on the project site at any given time. Approximately 392 cubic yards of soil would be excavated and exported during well drilling activities.

Project construction would require groundwater pumping activities during well development at a rate of approximately 100 to 300 gallons per minute (gpm) for the monitoring wells and 100 to 1,500 gpm for the injection wells. Well development would produce approximately 300,000 gallons (0.9 acre-feet) of water per monitoring well and approximately 3,500,000 gallons (10.8 acre-feet) of water per groundwater well. Groundwater produced during well development would be disposed of via connections to the existing Pismo WWTP ocean outfall pipeline that runs below SR 1.

Site Access Site access at the ATF would be provided via an entrance gate through the ATF fencing. Construction of the project components, including the water distribution pipelines and the injection and monitoring wells, would result in temporary access restrictions along public roadways throughout the project area. Operation of the project components would result in a minor increase in daily trips to and from the project site.

9. Surrounding Land Uses and SettingLand use west of the known project components is mainly open space associated with Pismo State Beach. A golf course, a campground, and residential development are located west of the northern portion of the project site. The southern portion of the project site is occupied primarily by the Oceano County Airport and single-family residences in Oceano. Industrial and agricultural development extends eastward from the southern portion of the project site. Residential development occupies most of the land east of the middle and northern portions of the project site, with some commercial and industrial development located along the SR 1 corridor.

10. Other Public Agencies Whose Approval is RequiredOther agencies whose approval is potentially required include the United States Bureau of Reclamation, the United States Army Corps of Engineers (USACE), the Federal Aviation Administration, the Federal Railroad Administration, the California Department of Fish and Wildlife (CDFW), the California Coastal Commission, the California Department of Parks and Recreation, the State Water Resources Control Board (SWRCB) Division of Funding Assistance and the Division of Drinking Water, the California Department of Water Resources, the Central Coast Regional Water Quality Control Board, SSLOCSD, the County of San Luis Obispo, the California Department of Transportation (Caltrans), the City of Arroyo Grande, and the City of Grover Beach.

Several partner agencies, potentially including the City of Pismo Beach, SSLOCSD, the County of San Luis Obispo, the City of Arroyo Grande, and the City of Grover Beach, may form a Joint Powers Authority (JPA) at a future time. Should a JPA be formed for the purposes of project funding,



management, and operation, that JPA likely would serve as a CEQA Responsible Agency for the proposed project.



City of Pismo Beach Central Coast Blue

18

References

Carollo Engineers. 2018. Appendix B of Technical Memorandum 3 RO Concentrate Sampling Plan Results. November 2018.

Northern Cities Management Area (NCMA) Technical Group. 2018. Northern Cities Management Area 2017 Annual Monitoring Report. April 22, 2018. Available online at: https://www.pismobeach.org/DocumentCenter/View/42377/NCMA-2017-Annual-Monitoring-Report?bidId=

Pismo Beach, City of. 2016. 2015 Urban Water Management Plan for the City of Pismo Beach. June 29, 2016. Available online at: https://pismobeach.org/DocumentCenter/View/47720/Pismo-Beach-2015-UWMP-?bidId=


https://www.pismobeach.org/DocumentCenter/View/42377/NCMA-2017-Annual-Monitoring-Report?bidId

https://www.pismobeach.org/DocumentCenter/View/42377/NCMA-2017-Annual-Monitoring-Report?bidId

Dear OCSD,

My name is Chelsea Potter, a local healthcare professional and environmental activist raised in Oceano. I am writing you today to express my disappointment in recent events. I have read in the New Times “the board approved a motion 3-2 to prohibit board member Cynthia Replogle from serving on any voting or non-voting committees and from obtaining any community liaison or subject matter assignments for the duration of 2020.”

I have come to a meeting in the past to speak out about plastic pollution along with IWMA. I was disappointed overall with the knowledge level of the board about environmental issues we are facing. Cynthia Repogle seemed like the only board member that was well versed in the most important issues, those that will determine the future of Oceano and its citizens (climate change, air and water pollution, etc.). Your job is to represent and work for the community, not to remove someone from committees for strongly representing facts and opinions about very important issues. To me, It makes no sense to have a board that is always on the same level, how would we grow and learn? How would we represent all members of community on a completely homogeneous board? Wouldn’t it be great if we actually encouraged and valued difference in opinion?

Also, since when is outspoken a bad thing? We need people (women specifically) to be more outspoken, even if it makes people who prefer the status quo uncomfortable. The only thing that matters is that we are taking steps to preserve our future. I ask you to reconsider this vote so that environmentally conscious citizens feel represented on your board.

Thank you for your time, Chelsea Potter

Agenda Item 11 January 22, 2020 - Page 87 of 91

1

Carey Casciola

From: Kara Woodruff <[email protected]>Sent: Monday, January 06, 2020 9:34 AMTo: [email protected]: Contact Form Submission, Subject: Other | Entry ID 149

Name

Kara Woodruff

Email

[email protected]

Phone

(805) 440-6650

Subject

Other

Message

I understand that the Oceano CSD recently barred board member Cynthia Replogle from serving on board committees due to her comments made as a individual (rather than as a board member) contrary to the opinion of the majority of the board. This raises several concerns, and I would recommend that the board reconsider its action.. Not only does this appear to be a constraint on Ms. Replogle's constitutionally protected freedom of speech, it also serves to quash a voice of dissent -- which is so important in the functioning of a healthy democracy, even at the local level. Your action also makes the Oceano CSD look unprofessional == and it's a distraction from the many important issues that the board has to address in serving its residents. I hope you will step back for a moment and reflect on this, and take a position that is reflective of your professionalism, tolerance of diversity and diverse views, and consistent with the way local government should operate. Thank you for your consideration, Kara Woodruff (SLO County resident).


1

Carey Casciola

From: James Miers <[email protected]>Sent: Tuesday, January 07, 2020 8:13 PMTo: [email protected]: Contact Form Submission, Subject: Other | Entry ID 152

Name

James Miers

Email

[email protected]

Phone

(805) 439-2191

Subject

Other

Message

Dear CSD Board of Directors: I am concerned about comments made by members of your board of directors quoted in the December 19, 2019 New Times SLO. Director Gibson equates a board member’s disagreement with the board majority with not supporting the community. I practiced corporate law and have advised many non-profit boards. A director’s primary fiduciary duty is to act in the best interest of is to their constituents. If they disagree with a board decision, they have a duty to communicate that to their constituents if they believe it is in their constituents’ best interest to do so. This can be during or outside of board meetings and is subject only to rules of board confidentiality and orderly debate. The board went too far by banning Director Replogle from any committee assignments. Even if Ms. Replogle had been disruptive in a meeting, this is not an accepted penalty under Roberts Rules of Order for disruptive behavior. It is clearly being used as a thinly veiled excuse for a power grab by Gibson, White, and Austin. By not clearly specifying the allegations in terms of violations of fiduciary duty and not allowing Ms. Replogle a chance to respond to the allegations, she has been denied due process. By unfairly depriving a representative elected by the members of the district of her right to represent them fully, these three board members are violating their fiduciary duties and overstepping their authorized powers. As such, it would behoove the district voters to recall them if these violations are not corrected. I urge you to do so as soon as possible. Sincerely, Jim Miers


1

Carey Casciola

From: Annette Sheely <[email protected]>Sent: Tuesday, January 07, 2020 8:10 AMTo: [email protected]: Contact Form Submission, Subject: Other | Entry ID 150

Name

Annette Sheely

Email

[email protected]

Phone

(805) 234-5755

Subject

Other

Message

I heard from a friend that you’ve told Cynthia Replogle to not speak up if she disagrees with you. Insecure tyrants wield their power that way, afraid of dissenting views. Good leaders in a democracy feel secure enough to withstand disagreement. I urge you to reverse this unfortunate and embarrassing stance.


1

Carey Casciola

From: Brenda Lowe <[email protected]>Sent: Wednesday, January 15, 2020 1:56 PMTo: [email protected]: Contact Form Submission, Subject: Other | Entry ID 154

Name

Brenda Lowe

Email

Phone

Subject

Other

Message

While attending the OCSD Board Meeting on 12/11/19, I was surprised to that during the committee assignments section on the Agenda, a motion was passed to block Director Replogle from all Committee assignments for this upcoming term, 2020. If I understood the discussion, the concern by the Board majority was that Ms. Replogle had been expressing views, opinions or positions on various issues that diverged from those the Board had officially approved and passed (3:2 or 4:1). Director Replogle denied this before leaving the meeting. She asked Legal Counsel if she retains her rights for free speech and Counsel said, “Yes”. Therefore, I’m confused and would hope the issue of her prohibition from committee assignments be placed back on the agenda and reconsidered. Are there guidelines/rules in the Bylaws for a Director’s role and behavior when attending public meetings as a private citizen based upon how the a Director identifies herself (private citizen expressing a personal view) vs. (meetings while serving as the Board’s appointed representative or alternate for the OCSD on official Committees? My personal belief is that IF any official rules/guidelines are breached, official notice of the infraction should be provided to that Director, then expected behavior reviewed and an opportunity for correction given. Perhaps a written review or censure was warranted? Maybe that has been done behind the scenes and Replogle’s loss of all committee assignments is appropriate. So be it, IF her alleged inappropriate comments actually occurred. If not, stripping prior committee assignments and prohibiting new ones for a duly elected or appointed Director of the OCSD Board seems punitive for a differing opinion. IF it must be done for cause, it seems like there should be due process and perhaps that was done. However, Ms. Replogle appeared blindsided by the motion passed and the results of losing all committee assignments before she left abruptly. Thank you.


Documents

Notice of Regular Meeting Oceano Community Services ......at this time, Public comment is limited to three (3) minutes. Notice of Regular Meeting Oceano Community Services District