Santa Barbara officials outline $113 million plan to replace Vic Trace Reservoir

Santa Barbara City Water Resources staff on March 20 described a preliminary plan to replace the aging Vic Trace Reservoir on the Mesa with two buried storage tanks, outline a multi-year environmental review and outreach program, and seek funding including state revolving loans and bonds.

At a Water Commission meeting, Kelly Bork, senior project engineer and acting supervising engineer for the Vic Trace replacement project, said the work would keep the system's existing 10,000,000-gallon capacity by installing two 5,000,000-gallon buried reservoirs within the current footprint. “Yes. We decided on two buried reservoirs, two 5,000,000-gallon reservoirs,” Bork said, describing that decision as driven by hydraulic and site constraints.

The project team told commissioners the Vic Trace site, between Cliff Drive and the neighborhood near La Cornia, is roughly 15 acres and currently stores finished drinking water that serves about 60,000 people — roughly 70% of the city's water customers — including downtown, the Mesa and the West Side. Bork said the existing reservoir, built in the 1950s, shows deterioration and presents seismic and slope-stability concerns under modern codes, motivating a full replacement rather than continued incremental repairs.

Why it matters: Bork and other staff emphasized the reservoir's central role in the distribution system and said the replacement aims to improve seismic resilience, water quality protection, security for on-site public-safety communications facilities and drainage at the hilltop site.

Design and site elements: The 15% preliminary design report completed in the last nine months included a seismic evaluation, geotechnical borings, hydraulic analyses and preliminary construction-route work. The concept keeps key IT and communications infrastructure on-site, consolidates multiple existing radio towers, and adds a new terraced working area, improved access roads and fire- and drought-resistant landscaping. The renderings shown to the commission depict the buried tanks under a flat area that could host a solar array.

Solar and energy: Staff said preliminary sizing suggests a roughly 1-megawatt solar array could exceed on-site power needs and that the team is evaluating battery storage and possible partnerships with Santa Barbara Clean Energy to use the output elsewhere in the city's water system. Bork cautioned that recent changes in net energy metering policy (referred to in the meeting as NEM 3) affect project economics and that staff are examining options to avoid penalties when exporting and consuming local generation.

Pipelines and neighboring properties: The project includes substantial pipeline relocation and replacement, with the team proposing to reroute a 24-inch transmission main now running through backyards into public streets where feasible. Staff said some legacy lines and an original overflow/storm-drain pipeline that crosses La Cornia Park will likely need replacement.

Construction approach and contractor engagement: Staff described exploring a construction manager at-risk (CMAR) contracting method to bring a contractor on early in design to refine means, methods, hauling routes and cost estimates. Matt Ward, Water System Manager, said early contractor involvement is helpful on complex projects: “Contractors are always like, yes. Bring us in early. It'll save you headache. It'll save you time, money,” Ward said.

Storage and operational planning during construction: The team said prior system changes and projects (including capacity additions at Cater and the existence of Sheffield and other reservoirs) reduce the need for temporary above-ground tanks, though staff acknowledged construction may span multiple fire seasons and that the project will require detailed operational modeling and coordination with Fire Department staff to ensure fire flows during any Vic Trace outages.

CEQA and schedule: Rincon Consultants is preparing an initial study and an environmental impact report (EIR). Staff estimated the CEQA process will take about two years, with the draft and final EIR work extending into 2026, followed by final design and procurement work in 2027–2028 and major construction from about 2028 through 2031. Bork and consultants plan repeated public engagement points throughout design and CEQA, including a scoping meeting and workshops.

Public outreach and next steps: Katz & Associates has prepared a communications plan and staff scheduled an in-person community workshop for Thursday, May 1 at 5:30 p.m. at Monroe Elementary School and a webinar on Wednesday, May 7 at 5:30 p.m., with recordings to be posted online. Staff asked commissioners and council members to attend; staff also said they are coordinating with City Attorney's Office on noticing if elected officials attend.

Cost and funding: The preliminary construction cost estimate for the project at 15% design is about $113,000,000, a figure staff said reflects inflation and large contingency at this early stage (staff noted brackets could be approximately 20% at this phase). Staff said they plan to pursue state revolving fund low-interest loans and are exploring bond options and other funding mechanisms.

Remaining technical issues: Staff identified several topics to resolve in the next design phase, including final sequencing to serve customers while Vic Trace is offline, handling an abandoned oil well under the reservoir footprint, detailed haul and traffic routing, and further refinement of structural and geotechnical measures to ensure slope stability.

Ending: Bork closed by repeating the project team's commitment to continued public engagement and listing near-term items for the commission, including award of a final design contract and potential selection of a construction manager for early involvement.

Votes at a glance

- Motion: Approve consent calendar. Result: Approved by roll-call vote. Yes: Commissioner Davis; Commissioner Young; Commissioner Cooney; Chair Snyder. Absent: Vice Chair Keller. (Roll-call recorded at the start of the March 20 meeting.)