WATER SUPPLY PLANNING COMMITTEE

ITEM:		ACTION ITEM
2.	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:			September 8, 2011
From:			David J. Stoldt,
			General Manager
Prepared By:			Arlene Tavani

SUMMARY: Attached as Exhibit 2-A is a Memorandum of Understanding (MOU) with language as proposed by the project proponents expressing non-binding intent to jointly explore the merits of developing a deep water desalination plant in Moss Landing, as proposed by DeepWater Desal. Also attached as Exhibit 2-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 September 8, 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, an estimate of the time needed to obtain or review these permits, and which agency would be the lead agency in preparing environmental documentation. On June 27, 2011, staff sent a letter with these requests. Attached as Exhibit 2-C is a list of potential permits required for the project and scheduling information provided by Brent Constantz at the August 11, 2011 committee meeting in response to the June 27, 2011 letter. A lead agency has not been identified for preparing the environmental documentation necessary to be in compliance with the California Environmental Quality Act (CEQA). Also attached as Exhibit 2-D is a summary of project costs presented by DeepWater Desal on August 11, 2011.

EXHIBITS

2-A Memorandum of Understanding

2-B Summary of Proposed Terms

2-C Draft Permit Target Dates

2-D Summary of Project Costs

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