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ITEM: |
ACTION
ITEM |
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18. |
CONSIDER CHANGES TO PROJECT
SIZING BY CALIFORNIA AMERICAN WATER |
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Meeting
Date: |
January 30, 2013 |
Budgeted: |
N/A |
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From: |
David J.
Stoldt |
Program/ |
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General
Manager |
Line Item No.: |
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Prepared
By: |
David J.
Stoldt |
Cost Estimate: |
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General Counsel Approval: N/A |
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Committee Recommendation: N/A |
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CEQA Compliance: N/A |
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SUMMARY: During the January 9, 2013 Public Participation Hearings on A.12-04-019 in Monterey, Cal-Am indicated that it was increasing the size of the proposed desalination facilities to incorporate replenishment of the Seaside Basin, as well as potential demand they had previously not included in the project sizing. These include build-out of the Pebble Beach project the EIR for which was certified by the County last summer, the potential “bounce back” in tourism resulting from economic recovery and utilizing existing visitor-serving capacity, and legal lots of record. These additions are shown in the table below:
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Estimated Demand –Mid Range (AFY) |
15,296 |
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5yr Average (AFY) |
13,290 |
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Pebble Beach (AFY) |
325 |
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Tourism Bounce Back (AFY) |
500 |
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Lots of Record (AFY) |
1,181 |
The resulting revised facility size is 6,252 AF with GWR, or 9,752 without GWR.
RECOMMENDATION: The Board should discuss and determine if it would like to adopt a formal position of support, disagreement, or neutrality. Such position will be incorporated into District testimony to be filed in February.
BACKGROUND: As part of its application, Cal-Am indicated it needed new supplies of 9,006 acre foot per year (AFY) in order to meet an annual estimated demand of 15,250 AFY. This estimated demand was derived from the last Environmental Impact Report (“EIR”) and was the amount agreed upon by the parties in the settlement adopted in decision D.10-12-016.
Since Cal-Am filed its application, a couple of items have been brought to their attention that merits an adjustment to the estimated annual demand. These changes are as follows:
· A payback schedule for the Seaside Groundwater Basin was set at 25 years. Essentially, this reduces the available supply from the Seaside Basin from 1,474 AFY to 774 AFY.
· The tourism industry pointed to recent reductions in their occupancy rates that will come back and since they are existing customers, the use of a 5-year historical average may not reflect their true demand. Cal-Am reviewed past water use by commercial class users and has allocated 500 AFY for this updated demand return. MPWMD staff analysis of this amount is attached as Exhibit 18-A.
· Cal-Am has included an additional 325 AFY of potable water demand that needs to be included for the recently approved Pebble Beach build-out.
· Cal-Am provided the estimated demands for the Lots of Records (LOR) of 1,181 AFY.
As part of their supplemental testimony, Cal-Am has re-evaluated the plant size to accommodate the above listed supply and demand changes with the assumption that current demands remain equal to the 5-year historical average which is approximately 13,290 AFY.
Summed up, the revised demands are 15,296 AFY, however, due to the reduction in the Seaside Basin supply, the desal plant needs to be sized larger by approximately 700 AFY or 0.6 million gallons per day (MGD) to account for the reduction in supply. Please refer to Exhibit 18-B which is a plant sizing memorandum from RBF Consulting dated January 7, 2013 that discusses the updated sizing of the desal plant with and without the Groundwater Replenishment (GWR) project.
The resulting revised facility size is 6,252 AF with GWR, or 9,752 without GWR.
18-A MPWMD Analysis of Hospitality Bounce-Back
18-B Plant Sizing Memorandum
U:\staff\Boardpacket\2013\20130130\ActionItems\18\item18.docx