DRAFT for 9/29 Board Pak MPWMD Decision Matrix Comparing Long-Term Water Supply Options
Subject to Revision Sep 23, 2004 11:45 PM Version 9; all edits matrixaltsv9combo_092404.xls
PROPONENT/SPONSOR California American Water Pajaro/Sunny Mesa CSD MPWMD MPWMD MRWPCA and MCWD
PROJECT DESCRIPTION Moss Landing desal plant assuming use of Duke Energy site and intake/outfalls.  Includes energy recovery; 24 mi pipelines; 3 pump stations; 2 storage tanks; connect into five existing water systems.  Includes ASR component to store CR and desal water in Seaside Basin.  Desal plant at National Refractories site; use existing intake/outfall and/or Duke's if available. Includes energy recovery; possible 30-ac solar energy. Current focus on P/SM service area; willing to expand to serve other areas. No ASR is planned, but could be combined with MPWMD ASR project. Desal plant at Sand City with potential intake and outfall locations from Seaside State Beach to coastal Fort Ord.  HDD well technology needed to achieve 8,409 AF yield goal; brine disposal via MRWPCA outfall likely needed.  Could be combined with MPWMD ASR project. Divert treated excess Carmel River winter flow via existing Cal-Am pipelines (plus new pipeline up Gen Jim Moore Rd) to ASR wells owned and operated by MPWMD in Seaside Basin. Reclaimed wastewater provided for nonpotable irrigation in Marina, Ft. Ord, Seaside, Del rey Oaks and Monterey area.  Two phases: 1700 AFY and 3100 AFY total. Surface storage reservoir, ASR and/or tank to meet peak demand in Ph. II.  Entitlements are within MCWRA share.
Pilot Project Planned for Duke site Jan 05 - Feb 06  Planned to operate 6-12 mos.; managed by K/J expert  None planned currently, but will be required by DHS Successful pilot and full-scale test wells since 1998. 12 years successful use of reclaimed water. Pilot project on golf course.
PROJECT YIELD Actual yield based on commitments of purveyors Actual yield based on commitments of purveyors 8,409 AFY yield goal; possibly 11,000 AFY (uncertain) 720-1,300 AFY depending on assumptions and modeling 300 AFY earmarked for Cal-Am system in Phase I
Comply with Order 95-10? (10,730 AFY assumed) Yes, 10,730 AFY assumed Yes, 10,730 AFY assumed Unlikely unless expanded or combined with another project No, unless teamed with another large project No, unless teamed with another large project
Future Mont. Penin. Needs? 1,000 AFY for Seaside Basin; 3,572 AFY for jurisdictions Potentially yes, as requested Current project goal is legalizing existing use  No, unless teamed with another large project No, unless teamed with another large project
Future Non-MP Needs 4,970 AFY for MCWD, NorCo 3,500-4,500 AFY for NorCo; possibly up to 5,000 AF None  None 2,800 AFY (Phase II)
TOTAL YIELD 20,272 AFY 20,000-30,000 AFY (20,000 AFY used for cost estimates) 8,400-11,000 AFY depending on assumptions 720-1,300 AFY depending on modeling assumptions 3,100 AFY (Phase II)
Yield Phasing to Mont Penin phasing based on demand; assume 10,730 AF min first phasing based on demand; assume 10,730 AF min first no phasing; build plant no phasing; build plant 300 AFY in Phase I and II.
PROJECT COST see CWP materials see P/SM text 2.2.4 and Table 1 varies with specific site varies based on assumptions see MRWPCA materials
Capital - see lines 77-114 $260,985,000 $175,831,000 for 18 MGD plant (20,000 AFY) $176,200,000 $20,641,000 - $21,661,000 $33,500,000 total ($19 + $14.5 mil for Phases I & II)  
Amortized Cap. Cost ($/yr) $21,035,000/yr $11,447,000/yr $14,202,000/yr $1,664,000 - $1,746,000/yr $2,250,000/yr total  
O&M per year $10,484,000/yr $13,360,000/yr $8,790,000/yr $293,000 - $296,000/yr $800,000/yr (I); $1.1 mil/yr (I&II)  
Assumed energy cost ($/kwh) $0.07/kwh $0.05-0.06/kwh (solar can help) $0.12/kwh $0.12/kwh $0.11/kwh
Total Annual Cost $31,519,000/yr $24,807,000/yr $22,992,000/yr $1,957,000 - $2,042,000/yr $2.08 mil/yr (I); $3.43 mil/yr (I&II)
Time frame for estimates August 2004 2004 December 2002 Dec 2002 - Aug 2004 June 2003
COST TO PENINSULA see CWP handouts see text 2.2.5
Share of total project cost 75% of yield to MP; CAP COSTS are $1,100/AF for MP, $940/AF for MCWD, $750/AF for NorCo; O&M COSTS are $503/AF for MP, $585/AF for others.  Cost of water based on contract volume (capacity+annual usage charges); separate charge for pipelines and pumping facilities.  $1240/AF for water only.  Entire cost to be paid by Peninsula consumers. $2,730/AF based on 7.5 MGD (8,409 AFY) project Entire cost to be paid by Peninsula consumers.  $2,800/AF based on 700 AFY (CDM); $1,570/AF based on 1,300 AFY (RBF). Only recycled water users pay for their share at about $1,100/AF.
How share determined Prorata share of participation see line 23 N/A N/A Prorata share
Cost sharing of existing vs. future Cal-Am ratepayers no information provided Future capacity cost based on construction and transmission New users pay connection fee similar to current system New users pay connection fee similar to current system Only recycled water users pay for their share at about $1,100/AF.
Cost of Water ($/AF) see line 23; ratepayer cost could be higher see line 23; need to add transmission and other costs see line 23; need to add distribution and other costs see line 23 -- includes Cal-Am system improvements  No change in Cal-Am rates is anticipated.
Impact to Cal-Am Bill $2.40/mo in 2006; $27.04/mo in 2011 over rates at that time no information provided no information provided no information provided no impacts anticipated 
FINANCING ASSUMPTIONS yet to be determined revenue bonds or COPs pursuant to District Law pursuant to District Law
Interest rate (%) 7% current rate is 5% 7% 7% 3% (assume SRF loan)
Term (yrs) 30 30 years 30 years 30 years 20 years
Public vote required? not currently contemplated; possible if public financing Not required of P/SM unless Prop 118 Yes, if MPWMD project.              No, if JPA. Yes, if MPWMD project.              No, if JPA. No
Grants (describe) May apply for EPA or Prop 50 grants eligible; will submit applic to DWR and BurRec for planning, envtl and pilot project costs none currently none currently No grants anticipated; assume SRF loan.
TIMELINE see CWP charts see P/SM text Figure 3 Assume 11/1/04 Start Work Assume 11/1/04 Start Work see MRWPCA materials
Draft EIR (and/or EIS) PEA to CPUC mid-05; no info on CPUC or other entity re: DEIR timing; NEPA reqts uncertain CEQA compliance Oct 04-Sep 05; assume limited NEPA review and no EIS.  DEIR Apr 05 (5 mos, evaluate onshore HDD); assume NEPA tiers on EIR. DEIR Spring 2005 (5 mos, including IS/NOP + 3 mo eval) DEIR distributed Aug 04; assume NEPA tiers on EIR
Certify FEIR (EIS ROD) FEIR Feb 06; NEPA uncertain Sep 05; NEPA tiers on EIR Fall 05 FEIR; NEPA uncertain Sum 05 FEIR; NEPA unclear 2005; no info on NEPA
Obtain key permits Spring 2006 for DHS, MBNMS and RWQCB; CCC in Dec 06 Jan-Sep 05 to obtain permits Fall 2006 (assume 12-18 mos from DEIR) Spring 2006 (assume 1 yr from DEIR)  2005
Secure financing timeframe not provided timeframe not provided Spring 2007 (6 mo. for vote) late 2006 (6 mo for vote) 2005
Secure ROW/property access after environmental studies no information provided 2007 2007 2005
Start construction Jan-Mar 2007 mid-2006 2007 2007 2006
Commence water delivery Fall 2008 (18-mo construct) Jan 2008 (18 mo construct) 2009 (24 mo construction) 2007-2008 (6 mo construct) Fall 2007 (Ph I); 2009 (Ph II)
Total time to water delivery 4.0 years from Oct 04 3.3 years from Oct 04 5 years from Oct 04) 3+ years from Oct 04 3-5 yrs from Oct 04 (Ph I, II)  
PERMITS/REGS see CWP materials see P/SM materials  
Federal Agencies USACOE, USFWS, USArmy BRAC; USBLM, USEPA, MBNMS, NOAA Fish, USCG Same as CWP except no CPUC or SWRCB permit needed for ASR; fewer stream crossings and avoidance lessen federal permits; P/SM serves as lead agency Similar to CWP; no pipeline under sloughs and streams lessens some federal permits US Army Ft Ord; amend existing lease agreement for site USACOE; USBR; other federal agencies possible as part of NEPA review
EIS needed? NEPA review required by fed law; EIS possible based on pipeline alignment NEPA review may be needed; EIS unlikely if demonstrate avoidance, reduced impact  NEPA review assumed; EIS is possible NEPA review, but may tier off EIR and existing permit NEPA review required but EIS not anticipated (tier off EIR)
Fed lead agency? Army Corps likely to be determined, if needed TBD (US Army?) US Army  USBR assumed
Sanctuary permit? Permit to construct; review NPDES application Yes, related to NPDES/outfall; need to confirm outfall capacity Yes, related to intake and discharge No none expected to be required
State Agencies CCC, CPUC (if Cal-Am); RWQCB, CEC, CDFG, DHS, CalTrans, DPR, SLC, CDTS Same as CWP, except no CPUC Same as CWP except no CPUC SWRCB, CDFG, DHS DHS, RWQCB, CCC anticipated
CPUC approval? Needed for Cal-Am rates; Cal-Am submitted application for CWP Sept 20, 2004. N/A N/A N/A N/A
EIR lead agency TBD-- CPUC presently assumed Pajaro/Sunny Mesa CSD MPWMD MPWMD MRWPCA and/or MCWD
SWRCB/Water Rights Needed for ASR or any other new Carmel River diversions N/A, no ASR planned No Yes, diversion of Carmel River; Petition for Change N/A; loan from SWRCB
Regional Agencies MBUAPCD Same as CWP Same as CWP none MPWMD, MBUAPCD, FORA
Monterey County MCWRA, P&B, MCEH construction and use permits MCEH, P&B (?) MCEH, P&B (?) Pub wks, P&B, MCEH, MCWRA
Local Agencies MPWMD, MLHD; FORA, all affected cities and jurisdictions for encroachment and construction permits   Similar to CWP; jurisdictions may vary  Construction and use permits within affected jurisdictions Construction and use permits within affected jurisdictions Marina, Seaside, Del Rey Oaks, Monterey
Confirmed site? No, pilot project only. Duke wants no impact to current permits + public support.  Expect Duke approval after EIR and permits. Yes, lease agreement with owner of Natl Refractory site.  No info on possible use of Duke outfall (see line 6) Sites and alternatives identified but no agreement with owners at present.  Use of MRWPCA outfall needed for larger sizes Current 50-year lease with US Army at present site of full-scale test well. Yes.  All facilities exist; only pipeline and pump station ROW will be needed
Alternative sites? 3 sites identified off Dolan Rd None needed Yes, several (see BRDEIR). None planned at present. N/A
Technical, Managerial and Financial Capabilities (TMF) to meet DHS standards Cal-Am has extensive TMF capabilities and current certifications to own/operate water systems. Over 39,000 customers in Monterey County P/SM has current TMF certification by DHS. Planned enhancement for desal project includes expanded board, new staff and outsourcing engineering and legal services. Assume certified entity would operate plant in coordination with Cal-Am system, with MPWMD oversight. Assume Cal-Am would operate well and integrate into Cal-Am system with oversight by MPWMD. MRWPCA and MCWD are established and certified water system and reclamation plant operators.
Water production interruptions (e.g., power or intake water) Consistent w/ Duke operations; forebay, storage tanks & ASR as backup; other Cal-Am sources Back-up generators and onsite solar, if feasible  Redundant plant design; back-up generators; ASR source Back-up generators Pump stations have back-up generators
PROJECT PARTICIPANTS Information subject to change  
Overview Cal-Am and County relationship presently uncertain; Cal-Am intent is ultimate public ownership. Focus on P/SM needs; willing to expand plant to meet needs of others such as FORA, MCWD and Monterey Peninsula Funded by MPWMD via methods allowed by MPWMD Law; possible public-private partnership or JPA. Funded by MPWMD via methods allowed by MPWMD Law; possible public-private partnership or JPA. Areas receiving water already established; previous agreements spell out MCWRA entitlements.  
MPWMD participation Uncertain. Written materials show Cal-Am as owner/operator for ASR, but public presentations indicate MPWMD as ASR entity, in cooperation with Cal-Am.  Authorized to develop JPA with MPWMD MPWMD currently envisioned as sole sponsor. MPWMD envisioned as sole sponsor in coordination with Cal-Am. No MPWMD participation required.  Possible co-sponsorship through agreement with project proponents.
Other entities participation Other water purveyors are wholesale water customers. Ongoing discussions with FORA and MCWD.  Have not met with Cal-Am. None specified; partnerships possible. ASR could be coordinated with any other larger desal project. None anticipated at this time.
Outreach programs Formal outreach program with 20 town hall meetings; presentations to jurisdictions. Website.  Presentations to MPWMD, City of Monterey, MCWD, FORA, DHS as requested Monthly written updates and quarterly public workshops 2002-early 2004. Monthly or quarterly updates; oral reports Board meetings. Anticipated once EIR completed; $200,000 budgeted. Golf courses would be largest customers.
INFORMATION SOURCES Aug 24, 2004 CWP handouts; answers to MPWMD questions at 7/29/04 workshop; cost details provided by Cal-Am 08/25/04; matrix info provided by MCWRA (8/24/04); misc communications with Cal-Am, RBF and MCWRA. Draft Engineering Report (see line 115). Slides and responses to questions at 7/29/04 MPWMD workshop (meeting minutes); written Decision Matrix materials dated September 10, 2004. E-mails and phone correspondence with Kennedy Jenks and Marc Del Piero Board Review Draft EIR, MPWMD Water Supply Project, December 2003.  Regulatory agency worksheets prepared by Jones & Stokes Sept 2004. See line 115 for technical reports with cost information.  MPWMD staff and consultant estimates.  MPWMD staff and consultant estimates.  Engineering Reports (see line 115 for cost references). Presentation by Keith Israel at 7/17/04 MPWMD Board meeting.  Materials materials submitted by Bob Jaques, Chief Engineer, on September 14, 2004.  B. Jaques edits and comments. Engineering Report for costs (see line 115).
CAPITAL COST DETAIL first number is MPWMD first # in paren is Phase I  
DESALINATION second number is Cal-Am second # in paren is Phase II  
Intake $8,072,000 $500,000 $21,600,000 N/A N/A
Pre-treatment included in plant cost included in plant cost included in plant cost N/A N/A
Desal Plant $119,620,000 $81,000,000 $28,250,000 N/A N/A
Post-treatment included in plant cost included in plant cost included in plant cost N/A N/A
Brine discharge included in intake cost $1,500,000 $18,656,000 N/A N/A
Storage $8,082,000 $14,000,000 included in transmission pipeline N/A N/A
Transmission Pipelines $31,320,000 $16,830,000 $12,692,000 N/A N/A
Pump stations $7,955,000 included in storage cost included in transmission pipeline N/A N/A
Energy facilities none identified none identified $1,000,000 N/A N/A
DESAL SUBTOTAL $175,049,000 $113,830,000 $82,198,000 N/A N/A
ASR COSTS $10,124,000 N/A N/A $3,062,000 - $10,124,000 N/A  
RECYCLED WATER COSTS N/A N/A N/A N/A $26.5 mil total ($15 mil + $11.5 mil)  
Pilot Plant $1,114,000 included in desalination project none identified MPWMD already operational N/A  
Distribution system improvements included in desal and ASR costs none identified none identified $6,516,000 - $4,750,000 N/A
Right-of-way $4,400,000 none identified $6,500,000 $1,100,000 - $1,100,000 none identified
Envtl review, permits, etc. $46,572,000 $3,415,000 $61,702,000 $7,377,000 - $3,718,000 $7 mil total ($4 mil + $3 mil)
Engineering included in envt/permits $11,383,000 included in envt/permits included in envt/permits included in envt/permits
Construction Management included in envt/permits $8,537,000 included in envt/permits included in envt/permits included in envt/permits
Admin/legal included in envt/permits $3,415,000 included in envt/permits included in envt/permits included in envt/permits
Mitigation measures none identified none identified none identified none identified none anticipated 
Contingencies $23,726,000 $35,251,000 $25,800,000 $2,586,000 - $1,969,000 included in envt/permits
SUBTOTAL $75,812,000 $62,001,000 $94,002,000 $17,579,000 - $11,537,000 $7,000,000 total - see line 98
TOTAL CAPITAL COST $260,985,000 $175,831,000 $176,200,000 $20,641,000 - $21,661,000 $33.5 mil total ($19 mil + $14.5 mil)
ANNUAL O&M COST DETAIL for 20,000 AFY plant  
Energy included in total O&M $4,432,000 $7,250,000 included in total O&M included in total O&M
Facilities O&M included in total O&M $8,928,000 $1,540,000 included in total O&M included in total O&M
Mitigation O&M none identified none identified none identified none identified none anticipated
TOTAL O&M ($/yr) $10,484,000 $13,360,000 $8,790,000 $293,000 - $296,000 $800,000/yr Phase 1; $1,100,000/yr Phase I & II
SOURCES FOR COSTS Draft Preliminary Project Description, Coastal Water Project, Aug 2004, RBF Consulting, pp 4-3 and 4-5 North Monterey County Desalination Project, MPWMD Decision Matrix, Sept 10, 2004, Kennedy/Jenks Consultants; e-mail refinements from Thomas Yeager, K/J Senior Engineer Monterey Peninsula Water Supply Project, Phase 2 Technical Memorandum, Project Facilities Alternatives for the Sand City Desalination Project, June 23, 2004, CDM, p 6-2. First number: Monterey Peninsula Water Supply Project Alternatives, Final Phase 1 Technical Memorandum, March 2003, CDM, p 3-29.   Second number: Draft Preliminary Project Description, Coastal Water Project, Aug 2004, RBF, pp 4-3 and 4-5. Regional Urban Recycled Water Distribution Project, Prepared for MCWD and MRWPCA, July 2003, RBF Consulting, pp 6-3 and 6-9; and materials from Bob Jaques, MRWPCA Chief Engineer, September 14, 2004.
$/AF cost per acre-foot
$/kwh- cost per killowatt-hour
ac acre
AFY acre-feet per year
ARB Air Resources Board
ASR aquifer storge and recovery
BRAC Base Realignment and Closure Office (US Army)
BRDEIR Board Review Draft EIR on MPWMD Water Supply Project (interim draft, Dec 2003)
Cal-Am California American Water 
CalTrans Cal. Dept. of Transportation
CAW California American Water 
CCC California Coastal Commission
CDFG Cal. Dept. Fish & Game
CDM Camp Dresser & McKee, Inc
CDTS Cal. Dept. of Toxic Substances
CEC California Energy Commission
CEQA California Environmental Quality Act
COP Certificate of Participation
CPUC Cal. Public Utilities Commission
CR Carmel River
CSD Community Services District
CWP Coastal Water Project
DBO design-build-operate
DHS Cal. Dept. of Health Services
DPR Cal. Dept. of Parks & Recreation
Duke Duke Energy Corporation
DWR Cal. Dept. of Water Resources
EIR Environmental Impact Report
EIS Environmental Impact Statement
FORA Fort Ord Reuse Authority
HDD horizontal directional drilling
IS Initial Study
JPA Joint Powers Authority
MBNMS Monterey Bay National Marine Sanctuary
MBUAPCD Monterey Bay Unified Air Pollution Control District
MCEH Monterey County Environmental Health
MCWD Marina Coast Water District
MCWRA Monterey County Water Resources Agency
MLHD Moss Landing Harbor District
MoCo Monterey County
MP Monterey Peninsula 
MPWMD Monterey Peninsula Water Management District
MRWPCA Monterey Regional Water Pollution Control Agency
N/A not applicable
NEPA National Environmental Policy Act
NMCDP North Monterey County Desalination Project
NOAA Fish National Marine Fisheries Service (part of Natl Oceanic and Atmospheric Administration)
NOP Notice of Preparation
NorCo North Monterey County
O&M operations and maintenance
PEA Proponent's Environmental Assessment
P&B Monterey County Dept. Planning & Building Inspection 
P/SM Pajaro/Sunny Mesa Community Services District
RBF RBF Consulting, Inc
ROD Record of Decision
ROW right-of-way
RWQCB Regional Water Quality Control Board
SLC State Lands Commission
SRF State Revolving Fund, a loan administered by SWRCB 
SWRCB State Water Resources Control Board
TBD to be determined
USACOE US Army Corps of Engineers
USBLM US Bureau of Land Management
USBR US Bureau of Reclamation
USCG US Coast Guard
ESEPA US Environmental Protection Agency
USFWS US Fish & Wildlife Service