WATER SUPPLY PLANNING COMMITTEE

ITEM:		DISCUSSION ITEM
5.	UPDATE ON POTENTIAL FOR WATER PROJECT 3 (LOCAL DESAL) WITHIN DISTRICT BOUNDARIES
	a.		Consider Adoption of Recommendation to the Board Regarding Approval of a Memorandum of Understanding Regarding Development of Deep Water Desal Project in Moss Landing
Meeting Date:				August 11, 2011
From:				Darby Fuerst,
				General Manager
Prepared By:				Arlene Tavani

SUMMARY: Attached as Exhibit 5-A is a proposed Memorandum of Understanding (MOU) expressing non-binding but serious intent to jointly explore the merits of developing a deep water desalination plant in Moss Landing, as proposed by DeepWater Desal. Also attached is Exhibit 5-B, is a Summary of Proposed Terms that is referenced in the MOU. District staff will provide more information and respond to questions at the August 11, 2011 committee meeting.

RECOMMENDATION: The Committee should review the documents in preparation for discussion with District staff.

BACKGROUND: At the June 21, 2011 committee meeting, Brent Constantz of DeepWater Desal gave a presentation on the proposed desalination plant at Moss Landing and requested that the committee consider a letter of intent to develop the project. The committee asked that the letter of intent be presented for review in advance of Board consideration. The committee also requested that staff submit a letter to DeepWater Desal requesting a list of all permits that would likely be required to develop the project and an estimate of the time needed to obtain or review these permits. Dr. Constantz indicated that he would provide the scheduling information at the August 11, 2011 committee meeting.

EXHIBITS

5-A Memorandum of Understanding

5-B Summary of Proposed Terms

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