Nacimiento Water Project – Water from “the Dragon” – Lake Nacimiento -Graphic from Microsoft Virtual Earth

This is the largest public works project ever attempted in San Luis Obispo County. The size and complexity of the project requires a great deal of dedication and technical ability. Throughout its investigation, the Grand Jury was impressed by the capabilities and professionalism of those involved in the project’s planning and implementation.

Due to the current economic environment, the project was able to award four of its five major construction contacts for less than the original cost estimates. This saves the project almost $16 million.

Even with the savings noted in Finding #2, the currently projected overall project cost has increased approximately 19% from the project’s original 2004 budget projection.

While the project is important in addressing the short term needs of the participating agencies, it is not a permanent solution. All local governments in the County will need to develop long term strategies to address future water needs and threats to current supplies. The Jury found that many of the existing water resource planning documents are outdated.

Many consumers will be facing significant water rate increases to pay for the project’s construction and ongoing operation and maintenance. Most of the agencies involved in the project will be combining project costs with costs for their current water systems. Over time, it may be difficult for consumers to identify which portion of their water bill is being used to actually fund the project.

The project may have “growth inducing” effects and the governing bodies for the participating agencies will have to recognize and address this potential.

The project will have to use eminent domain to acquire portions of the necessary right-of- way. Project managers will have to address citizen resentment inherent in this legal process to avoid the potential for project delays. 2007/2008 San Luis Obispo County Grand Jury Report Commendation A great deal of energy and commitment is required to overcome the myriad of technical and political challenges that are inherent with any project of this magnitude. As mentioned in the “Method” section of this report, the Grand Jury met with many of those who were responsible for moving this project from a concept to an actuality. Throughout the process of taking testimony and gathering background information, the Jury was continually impressed by the technical competence and enthusiasm for the project demonstrated by these individuals. While it may be several years before it can be determined whether or not the project is a complete success, the Jury commends the participating governmental agencies, project staff and consultants for their work thus far. (Finding #1)