COMMUNITY ADVISORY COMMITTEE
4.	PRESENTATION ON THE Monterey Bay Regional Desalination Project Proposed by the Pajaro/Sunny Mesa Community Services District
Meeting Date:		June 25, 2007	Budgeted:	N/A
From:		David A. Berger,	Program/	N/A
		General Manager	Line Item No.:
Prepared By:		Andrew Bell, District Engineer	Cost Estimate:	N/A
General Counsel Approval: N/A
Committee Recommendation: N/A
CEQA Compliance: N/A

SUMMARY: Representatives of Pajaro/Sunny Mesa Community Services District (P/SM) will give a presentation on the Monterey Bay Regional Desalination Project, with its plant site proposed to be located at the former National Refractories and Mineral Corporation’s Moss Landing facility. Basic information on the project is included in the MPWMD Comparative Matrix of water supply alternatives dated October 16, 2006. This matrix was distributed to Community Advisory Committee (Committee) members at the February 6, 2006 Committee meeting. The presenters will address questions orally following the presentation.

RECOMMENDATION: This item is a presentation only. The Community Advisory Committee members should express their initial opinions on the merits and drawbacks of this project as part of Item 6, “Committee Comments on the Monterey Bay Regional Desalination Project Proposed by the Pajaro/Sunny Mesa Community Services District.”

BACKGROUND: Summary information regarding the Monterey Bay Regional Desalination Project, formerly referred to as the North Monterey County Desalination Project, is located in column C of Part I-A of the Matrix, pages 171 through 177 of the packet for the October 16, 2006 MPWMD Board meeting. Item 13 from that packet, pages 159 through 205, was distributed at the February 6, 2006 Committee meeting.

Following is the summary description of the project from the October 16, 2006 staff report. P/SM representatives will provide updated information during their presentation.

North Monterey County Desalination Project (Sponsor: P/SM – Exhibit 13-A, Column C)

Information about the North Monterey County Desalination Project (NMCDP) is very similar to that provided in 2005. Project components include a seawater desalination plant in Moss Landing, transmission pipeline to the Monterey Peninsula, and a potential 30-acre solar energy power production facility to reduce energy costs. The proposed site is the former National Refractories and Mineral Corporation’s Moss Landing facility, with planned use of existing intake/outfall pipelines, with possible use of LS Power Group intake and outfall, if needed. A lease agreement with the property owner has been in effect since March 2004. The yield goal is 20,000 to 23,000 AFY or more, depending on purveyor demand. A 20 MGD project, capable of producing up to 22,400 AFY, was used for cost estimates provided in 2006. Total demands of 20,930 AFY are identified in P/SM materials provided to MPWMD. The project is intended as a regional project, including meeting the needs of the expanding P/SM service area in northern Monterey County. P/SM has entered into a management agreement with Poseidon Resources, a private corporation experienced in desalination technology.

New and Changed Information in 2006: Pajaro/Sunny Mesa partner Peter MacLaggan of Poseidon Resources provided refined project description, cost and timeline information to MPWMD consultants for the 2006 evaluation of desalination projects, but no updated information was provided in response to MPWMD staff’s request to update information presented in the 2005 matrix. The total estimated capital cost provided by Poseidon was reduced from $175,831,000 in the 2005 matrix to $132,000,000. The total estimated O&M cost provided by Poseidon was increased from $13,360,000 in the 2005 matrix to $16,900,000 per year. Although the total estimated costs were disclosed by Poseidon, the breakdown of capital and O&M costs were provided to MPWMD’s consultants on a confidential basis. Therefore the costs by category (e.g., desalination plant, intake and outfall, transmission pipelines, etc. for capital costs, and energy and facilities costs for O&M costs) are not available to be presented in the matrix.

The County of Monterey approved the P/SM pilot project in March 2006, but the County’s approval was appealed to the California Coastal Commission (CCC). The RWQCB approved the pilot project at its September 7, 2006 meeting. An application to the CCC for a Coastal Development Permit for the pilot plant was submitted in March 2006. CCC consideration of that application and the appeal of the County of Monterey approval is anticipated later this year.

P/SM intends to be the lead agency for CEQA review of its desalination project. The target completion date for environmental review and permitting is June 2008, as compared with a date of December 2006 for certifying the Final EIR in the 2005 matrix. The target completion date for beginning water delivery is July 2010, as compared with a date of 2009 in the 2005 matrix.

U:\staff\word\committees\CAC\2007\20070625\04\item4.doc