MPWMD BOARD MEETING--APRIL 21, 2014--ITEM 8--CONSIDER APPROVAL OF EXPENDITURE FOR COST SHARING WITH SOQUEL CREEK WATER DISTRICT FOR THIRD PARTY REVIEW OF DEEPWATER DESAL COSTS

ITEM:		CONSENT CALENDAR

8.	CONSIDER APPROVAL OF EXPENDITURE FOR COST SHARING WITH SOQUEL CREEK WATER DISTRICT FOR THIRD PARTY REVIEW OF DEEPWATER DESAL COSTS

Meeting Date:			April 21, 2014	Budgeted:	Yes

From:			David J. Stoldt, General Manager	Program/	Alternative Desal Project
				Line Item No.:	1-11-1

Prepared By:			David J. Stoldt	Cost Estimate:	Ongoing; Not to exceed $15,000

General Counsel Approval: N/A
Committee Recommendation: The Water Supply Planning Committee reviewed this item on April 18, 2014. Staff will announce the committee recommendation at the April 21, 2014 Board meeting.
CEQA Compliance: N/A

SUMMARY: At its March 18, 2013 meeting the Board directed staff to enter into further negotiations with DeepWater Desal to establish a cost-sharing relationship for the environmental and permitting work necessary to advance that project as an alternative to the Cal-Am proposal. Such a contract was developed and approved by the Board at its July 2013 meeting. Costs are being reimbursed by the District for such purposes.

In February, District personal attended a presentation by DeepWater Desal which was attended by many public agencies and water companies from the Monterey Bay area where the cost-per-acre-foot of water was discussed. The District commented that such costs appeared attractive, but would all would be better served if a third party review was conducted. The District was approached in March by Soquel Creek Water District to consider sharing costs for such a review.

The scope of work and cost for Kennedy Jenks consulting firm is attached as Exhibit 8-A. It is estimated that the District’s share will cost $12,400.

RECOMMENDATION: The General Manager recommends that the Board agree to cost-sharing with Soquel Creek Water District for the third-party review of costs and cost of water from the DeepWater Desal project. The Water Supply Planning Committee considered this item on April 18, 2014, prior to distribution of this staff report. District staff will announce the committee recommendation at the April 21, 2014 Board meeting.

EXHIBIT

8-A Kennedy Jenks Proposal

U:\staff\Boardpacket\2014\20140421\ConsentClndr\08\item8.docx

April 21, 2014

Budgeted:

Yes

General Counsel Approval: N/A

Committee Recommendation: The Water Supply Planning Committee reviewed this item on April 18, 2014. Staff will announce the committee recommendation at the April 21, 2014 Board meeting.