AGENDA Board of Directors Monterey Peninsula Water Management District: ITEM 12 Consider Action Plan for Investigation into Desalination Contingency Project and Approve Expenditure Not-to-Exceed $500,000 Per Fiscal Year to Fund Environmental Review, 10 December 2012

ABSTRACT: On Monday, December 10, 2012, the Board of Directors, Monterey Peninsula Water Management District, is scheduled to consider ACTION ITEM 12 Consider Action Plan for Investigation into Desalination Contingency Project and Approve Expenditure Not-to-Exceed $500,000 Per Fiscal Year to Fund Environmental Review. Action: The Board will consider authorizing staff to circulate a request for qualifications for preparation of a project description, and authorize funding for CEQA work related to a contingency project. The General Manager’s RECOMMENDATION: The General Manager recommends that the Board discuss these concepts and that it approve a plan that includes the following:
·         Develop a Request for Qualifications (RFQ) to be distributed to any and all potential ocean desalination project developers to utilize water sources that are not within the Salinas Valley Groundwater Basin.  Such an RFQ would define specific project parameters that the District would determine represents the best qualified viable project for which a detailed description could be developed for environmental review.
·         The District would partner with the developer to fund CEQA and NEPA review processes in an amount not to exceed $500,000 per year; the expenditure would be made over two fiscal years.  The District could undertake this effort as the sole Lead Agency for CEQA, or could act as co-Lead Agency for CEQA with a locally relevant agency.

·         The RFQ should provide that the District hold the option, upon certification of the EIR/EIS, for one year to become the owner of the project or, in the alternative, to negotiate with a third-party for ownership, and enter into the design and permitting phase.  However, as a condition to a partnership with a developer, the District should retain the option to terminate at any time, if the CPUC issues a CPCN to Cal-Am for another project designed to timely meet the potable water needs of the Peninsula.

Note: Committee Recommendation: The Water Supply Planning Committee considered this matter on December 4, 2012 and voted 3 to 0 to recommend approval.

The Staff Report prepared by David J. Stoldt, General Manager, and Exhibits 12-A through 12-I are embedded. 

RELATED NEWS ARTICLE:

Monterey Peninsulawater district may look into own desal project

Board considers pursuing teaming with developer

By JIM JOHNSON Herald Staff Writer, 12/07/2012

Mpwmd Agenda Item 12

AGENDA ITEM 12 & Staff Report, David J. Stoldt, General Manager
COMPLETE AGENDA

Exhibit 12-A

12-A    Pre-Hearing Conference Statement of Salinas Valley Water Coalition

Exhibit 12-B

12-B    Opening Brief on Various Legal Issues of Monterey County Farm Bureau

Exhibit 12-C

12-C    Opening Brief on Selected Legal Issues of Salinas Valley Water Coalition

Exhibit 12-D

12-D    Monterey County Farm Bureau Letter

Exhibit 12-E

12-E    Cal-Am Opening Brief on Legal Issues for Early Resolution

Exhibit 12-F

12-F    Cal-Am Reply Brief on Legal Issues for Early Resolution

Exhibit 12-G

12-G    Reply Brief of LandWatch Monterey County Regarding Groundwater Rights

Exhibit 12-H

12-H    Coastal Commission Addendum to Staff Report E-11-019

Exhibit 12-I

12-I     Cal-Am Contingency Plan Compliance Filing