WATER SUPPLY PLANNING COMMITTEE

ITEM:		ACTION ITEM
4.	Identify Key Issues and Needs Related to Cooperative Development of a Seawater Desalination Project at the Abandoned City of Monterey Wastewater Treatment Plant (Water Project 3, Local Desal within District Boundaries)
Meeting Date:			November 22, 2011
From:			Dave Stoldt,
			General Manager
Prepared By:			Larry Hampson

SUMMARY: MPWMD staff have met twice with representatives of the Public Works Department at the Naval Support Activity Monterey (NSAM) to discuss building a desalination plant capable of producing two millions gallons per day of fresh water at the abandoned City of Monterey wastewater treatment plant, which is located just west of Del Monte Boulevard across from the Naval Postgraduate School (see Figure 1 in Exhibit 4-A – Implementation Plan). The site is currently owned by the U.S. Department of the Navy.

Local Navy officials have expressed support for this project and are willing to assist in negotiating with the Navy for a long term lease of the site and with an agreement to supply power to the site. In exchange, the Navy would like MPWMD to consider a commitment to supply water to the Navy. In order to begin negotiations with the Navy, the Public Works Department asked that MPWMD send a letter of introduction to the Commanding Officer, Captain Gerral David, at NSAM requesting the Navy’s support in moving this project forward. Attached as Exhibit 4-B is a draft letter of introduction for conveyance to Captain David.

STAFF RECOMMENDATION:

The Committee should review the draft letter of introduction and attached Implementation Plan for the project. The Committee should consider taking the following actions: 1) making a recommendation to the full Board of Directors concerning sending a letter of introduction to Navy; and 2) recommending appointing one or more representatives of the District to meet with local Navy officials to discuss entering into a long-term lease agreement.

BACKGROUND: The City of Monterey abandoned their wastewater treatment plant site and conveyed to the Navy in the after completion of the Monterey Regional Water Pollution Control Agency Regional Treatment Plant. Most of the infrastructure built for the Monterey treatment plant remain on the site.

In early 1982, the installation of a regional sewer interceptor from the wastewater treatment plant through the Del Monte Beach Local Coastal Program area to the east required excavation of sand dunes in a 220-foot-wide construction easement. A dune restoration program within the sewer excavation area was required through a condition of the coastal development permit granted by the State (April 1982). The U.S. Navy has restored the dune habitat on the Navy property between the Recreational Trail and the beach through replanting with dune habitat plant species, and has limited pedestrian foot traffic through the dunes by constructing a boardwalk on the western end of the area, between the Trail and the beach. The Navy has an ongoing program to restore native dune plants.

As shown in Figure 1 in Exhibit 4-A – Implementation Plan, the Navy has indicated that dune restoration areas at the site must be preserved as well as some of the abandoned wastewater treatment plant facilities. Currently, the Navy has laboratory facilities in use and stores stormwater runoff for use with outdoor irrigation on Nay property. However, there are two areas that appear to be suitable for locating desalination facilities (open-air storage tank areas 1 and 2) and local Navy officials have indicated that the Navy could consider granting a long-term lease of the areas.

In addition to leasing out a portion of the site for desalination facilities, the Public Works Department has indicated that the Navy may have the capacity to supply electrical power to the site. District staff estimates that the amount of power required may be in the range of 28,000 kilowatt hours per day. Annual costs for this power are estimated to be about $1 million (2014 dollars), but may increase significantly as a result of the Cap and Trade Program for Greenhouse Gas emissions set up under AB 32.

The Navy has requested that MPMWD consider entering into a long-term agreement that would allow the Navy to provide in-kind services (a lease of the property and electrical power) in exchange for a supply of water at a fixed or reduced rate. District staff have informed Navy officials that if such an agreement is developed, the Navy would still be subject to the same limitations as the general community during a water shortage (e.g., as a result of legal restrictions or a physical shortage).

The Navy site has several advantages that could result in reduced construction, operatin, and maintenance costs when compared with other potential sites within the District boundary. These include: 1) proximity to Cal-Am facilities, which would likely result in minimal pipeline and other appurtenances for connecting to the Cal-Am system; 2) potential for minimal cost, local reliable power; 3) a potentially lower property acquisition cost; and 4) some of the existing facilities could be used (with modifications) in the treatment process.

Exhibit 4-A – Implementation Plan describes proposed activities, a timeline, and preliminary cost estimate for completing this project.

EXHIBITS

4-A Implementation Plan for Water Project 3: Local Desalination

4-B Letter of Introduction

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