ITEM:		ACTION ITEMS
16.	RECEIVE DRAFT REPORT FROM BOOKMAN-EDMONSTON/GEI CONSULTANTS ON EVALUATION OF SEAWATER DESALINATION PROJECTS PROPOSED FOR THE MONTEREY PENINSULA
Meeting Date:			July 16, 2007	Budgeted:	Yes
From:			David A. Berger,	Program/
			General Manager	Line Item No.: 1-2-1.B (2006-2007)
Prepared By:			Andrew Bell	Cost Estimate:	$30,000
General Counsel Approval: N/A
Committee Recommendation: N/A
CEQA Compliance: N/A

SUMMARY: At the February 22, 2007 Board meeting the Board authorized the General Manager to amend the contract with Bookman-Edmonston/GEI Consultants (B-E/GEI) to update their June 26, 2006 report titled “Seawater Desalination Projects Evaluation.” This report evaluated three major seawater desalination projects proposed for the Monterey Peninsula area: the Coastal Water Project proposed by California American Water (Cal-Am); the Monterey Bay Regional Desalination Project proposed by the Pajaro/Sunny Mesa Community Services District (Pajaro/Sunny Mesa); and the 7.5 million-gallon-per-day project in Sand City most recently evaluated by MPWMD in 2004. Comments on the 2006 report and questions regarding the projects were submitted by project proponents, MPWMD Board members, and members of the public. B-E/GEI was retained to respond to these comments and questions, and to add an evaluation of a fourth project, the Seawater Desalination Vessel concept proposed by Water Standard Company. The results of the updates to the 2006 report and the evaluation of the seawater desalination vessel concept are presented in the draft report titled “Evaluation of Seawater Desalination Projects Proposed for the Monterey Peninsula.” The Executive Summary of this report is attached as Exhibit 16-A. Copies of the entire draft report are being provided to the Board members under separate cover and are available for public review at the District office.

RECOMMENDATION: The Board should receive a presentation on the draft report by B-E/GEI and allow an opportunity for questions by Board members and comment by the public. Staff recommends allowing 30 days for formal comments on the report to be submitted to staff (through August 17, 2007). Following receipt of comments, B-E/GEI will provide an estimate of costs to amend and print the final report. It is possible that the additional costs will be covered by available contingencies. Staff proposes to submit the final report to the Board at the September 17, 2007 meeting.

BACKGROUND: As part of the MPWMD 2005-2006 Strategic Plan adopted by the Board at its October 18, 2005 meeting, the Board directed staff to hold a series of public workshops dealing with several aspects of water supply augmentation. One of the workshops was titled “Water Projects Cost and Timeline Analysis.” The purpose of this workshop, held on June 29, 2006, was to present information on the three major potential water supply projects then being proposed for the Monterey Peninsula and surrounding areas. The 2006 report provides information on the physical aspects of each project, as well as an analysis of the feasibility, estimated costs, environmental and permitting issues, and the current stage and anticipated timeline for each project.

Comments on the 2006 report and questions regarding the projects were submitted by project proponents, MPWMD Board members, and members of the public, both during the June 29, 2006 Board workshop and afterward. The Board discussed having B-E/GEI revise their report to respond to the comments and questions received. On August 31, 2006, the Board held a special meeting to receive a presentation by Water Standard Company, PBS&J, and GE Energy regarding the Seawater Conversion Vessel concept (now termed Seawater Desalination Vessel by the project proponents). Following the presentation, the Board requested that this project alternative be added to the update of the B-E/GEI report. On July 17 and October 16, 2006, the Board considered whether to amend B-E/GEI’s contract to make the desired revisions, but each time the Board deferred action. On February 22, 2007, the Board approved amending the contract with B-E/GEI to update the report and to add the Seawater Desalination Vessel project.

IMPACTS TO STAFF AND RESOURCES: On February 22, 2007, the Board authorized an expenditure of up to $30,000, including a contingency of $2,800, to contract with B-E/GEI to update the June 2006 report and to add the Seawater Desalination Vessel concept. The scope and timeline for this contract cover preparation of a single version of the updated report, and do not include preparation of a draft report, receiving comments on the report, and amending and printing a final report. Staff recommends that the report be received by the Board as a draft document and circulated for comment. Following receipt of comments on the draft report, staff and the consultant will be able to provide the Board an estimate of the cost and schedule for amending and printing the final report. Contingencies authorized by the Board to address unanticipated necessary work on the part of the consultant total $7,800. If the estimated costs for preparation of the final report exceed this amount, staff will seek Board authorization for amending the B-E/GEI contract.

EXHIBITS

16-A Executive Summary of draft report titled “Evaluation of Seawater Desalination Projects Proposed for the Monterey Peninsula,” by Bookman-Edmonston/GEI Consultants, Separation Processes Inc., and Malcom-Pirnie Inc., July 10, 2007

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