FINAL for 9/8/05 Meeting MPWMD Comparative Matrix -- Part I, Desalination
Sep 1, 2005 at 12:30 PM Version 3 with edits  matrix05_v1_082905.xls
DECISION ELEMENT COASTAL WATER PROJECT        NORTH MONTEREY COUNTY DESALINATION PROJECT                        LONG-TERM WATER SUPPLY PROJECT (Sand City Desal)
PROPONENT/SPONSOR California American Water Pajaro/Sunny Mesa CSD MPWMD
PROJECT DESCRIPTION Moss Landing desal plant assumes use of Duke Energy site and intake/outfall.  Includes desal conveyance system comprised of transmission main, terminal reservoir, and pump stations; and ASR facilities to store CR (or desalinated) water in Seaside Basin. PEA analyzes Proposed Project and five alternatives (see Line 60).  Proposed Project yield is 11,730 AFY. Desal plant at National Refractories site; prefer use of Duke Energy wastewater as source (existing intake as backup) with existing outfall.  Includes energy recovery; possible 30-ac solar energy. Current focus on regional plant, including 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.
Pilot Project Sep 05 approval expected from CCC, RWQCB and Monterey County; install in Fall 05; operate in Jan 06 for one year via agreement with Duke Energy.   Permits expected in Nov 05 based on approved Encina design; plan to operate 4 yrs.; managed by K/J expert  None planned currently, but will be required by DHS
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)
Comply with Order 95-10? Water for Seaside Basin? Yes, 10,730 AFY assumed for Project and alternatives.  1,000 AFY slated to replace Cal-Am use in Seaside Basin. Yes, 10,730 AFY assumed.  Up to 2,700 AF to address gap between current production and sustainable yield estimate in Seaside Basin. Yield falls short of 10,730 AFY unless expanded or combined with another project.  No yield to address Seaside Basin.
Future Mont. Penin. Needs? Regional Alt identifies 3,572 AFY for jurisdictions in CAW as amended by participants.  North Marina Alt could also be sized to meet these needs. Water for growth not currently contemplated. Current project goal is legalizing existing use (11,285 AFY from CR and 3,500 AFY from Seaside assumed)
Future Non-MP Needs Regional Alternative lists 4,970 AFY for MCWD/NorCo as amended by particpants.  North Marina Alt could also be sized to meet regional needs. Up to 11,230 AF to address known overdraft in areas now within P/SM service area None 
TOTAL YIELD 11,730 AFY for Proposed Project; 20,272 AFY for Regional Alternative (or North Marina Alt). 20,000-23,000 AFY (20,000 AFY used for cost estimates) 8,400-11,000 AFY depending on assumptions
Yield Phasing to Mont Penin 11,730 AFY is Proposed Project amount.  Oversized Pipeline Alt or Regional Alt could facilitate incremental future supply above 11,730 AFY.     Phasing based on demand; assume 10,730 AF plus amound needed for Seaside first No phasing; build plant
PROJECT COST 2005 Costs for Proposed Project (11,730 AFY) -- see cost basis documents see P/SM text 2.2.4 and Table 1 from 2004 Varies with site; see Dec 2003 Admin EIR
Capital - see lines 77-114 $191,090,000 $175,831,000 for 18 MGD plant (20,000 AFY) $176,200,000
Amortized Cap. Cost ($/yr) $15,000,000/yr $11,447,000/yr $14,202,000/yr
O&M per year $6,372,000 (net amount; see basis of cost info) $13,360,000/yr $8,790,000/yr
Assumed energy cost ($/kwh) $0.07/kwh $0.05-0.06/kwh (solar can help as a minor component) $0.12/kwh
Total Annual Cost $21,372,000/yr $24,807,000/yr $22,992,000/yr
Time frame for estimates Cap cost thru end of construction with 4% inflation 2004 December 2002
COST TO PENINSULA see text 2.2.5 from 2004
Share of total project cost 100% of Proposed Project costs are for CAW Peninsula customers; Regional Alt would rely on prorata share of participation.  Cost of water based on contract volume (capacity+annual usage charges); separate charge for pipelines and pumping facilities.   Entire cost to be paid by Peninsula consumers. 
How share determined See line 23 See line 23 N/A
Cost sharing of existing vs. future Cal-Am ratepayers See CPCN application; David Stephenson testimony Future capacity cost based on construction and transmission New users pay connection fee similar to current system
Cost of Water ($/AF) Proposed Project is $1,725/AF delivered to Peninsula customers ($1,000/AF for desal plant, pumps, pipes and storage; $150/AF for ASR; $550/AF for O&M). Includes lease of desal site.  Regional Alternative would be $1,600/AF for CAW customers.  $1,240/AF for delivered water to Peninsula ($1,185/AF without pipeline per K/J). Poseidon estimates $1,100-$1,200/AF based on Encina plant design in 2005, including desal site lease payments; does not include $55/AF estimated cost of pipeline to Peninsula.  $2,730/AF based on 7.5 MGD (8,409 AFY) project. Includes site acquisition and other R)W costs.  Need to add conveyance and related costs to obtain cost of delivered water. 
Impact to Cal-Am Bill Increase of $2.20/ccf in 2007 to $5.73/ccf in 2011 No information provided No information provided
FINANCING ASSUMPTIONS See CPCN application amended 7/14/05 Revenue bonds or COPs; possible Poseidon funding pursuant to District Law
Interest rate (%) 7% Current rate is 5% 7%
Term (yrs) 30 30 years 30 years
Public vote required? No public vote required; possible if public financing.  CPUC makes CPCN decision. Not required of P/SM unless Prop 118 Depends on type of funding or if part of JPA etc.
Grants (describe) None anticipated at this time.  On DWR eligible list, but no grant to date. Will pursue funds for pilot and envtl studies with MLML. None currently
TIMELINE See CWP charts   N/A -- Board tabled action in Oct 04
Draft EIR (and/or EIS) PEA submitted 7/14/05 forms basis of DEIR to be prepared by CPUC mid 2006.  NEPA reqts uncertain. Draft EIR in 2006; working with MLML; assume limited NEPA review and no EIS.  unknown; minimum 7 mos to evaluate onshore HDD, and DEIR; assume NEPA tiers on EIR.
Certify FEIR (EIS ROD) FEIR September 2006; NEPA uncertain. FEIR in Dec 2006; NEPA tiers on EIR unknown; assume 6 mos to FEIR
Obtain key permits Fall 2006 for DHS, MBNMS and RWQCB; CCC in 1st quarter 2007 Novt 05 pilot permits; Sep 07 for project permits Assume 6-12 mos from FEIR
Secure financing Upon CPUC approval of CPCN (late 2006-early 2007) early 2008 Assume 6 months after approval/vote
Secure ROW/property access After FEIR certified by CPUC After environmental studies Assume 3-6 months after financing
Start construction Winter/Spring 2008 to Spring 2009 2008  Assume 3-6 mo after ROW/access
Commence water delivery Spring 2009 2009  assume 24-month construction
Total time to water delivery 4 years from Sep 05 4 years from Sep 05 unknown; 4-5 years from Day 1 
PERMITS/REGS see CWP materials see P/SM materials
Federal Agencies USEPA, MBNMS, USFWS, NOAA Fisheries, USACOE, USCG Same as CWP except no ASR permits needed; fewer stream crossings/avoidance lessen federal permits Similar to CWP; no pipeline under sloughs and streams lessens some federal permits
EIS needed? NEPA review required; EIS possible based on pipeline alignment through federal lands if not already transferred to local jurisdictions NEPA review may be needed by Army for pipes; EIS unlikely if demonstrate avoidance, reduced impact  NEPA review assumed; EIS is possible
Fed lead agency? Army Corps likely to be determined, if needed TBD (US Army?)
Sanctuary approval? Permit to construct; review NPDES application Yes, related to NPDES/outfall; need to confirm outfall capacity Yes, related to intake and discharge
State Agencies CPUC, SWRCB, RWQCB, SLC, CDFG, CCC, CEC, CDPR, DHS, SHPO (Editor's Note -- CDTS?) Same as CWP, except no CPUC or CEC; no SWRCB for ASR; CDTS maybe Same as CWP except no CPUC, CEC
CPUC approval? Needed for Cal-Am rates; CPCN submitted for CWP Sept 20, 2004 and amended July 14, 2005. N/A N/A
EIR lead agency CPUC Pajaro/Sunny Mesa CSD  MPWMD
SWRCB/Water Rights Needed for ASR or any other new Carmel River diversions N/A, no ASR planned N/A
Regional Agencies MBUAPCD, MPWMD, TAMC, FORA Same as CWP Same as CWP
Monterey County MCWRA, MCPBI, MCEH, MCPW MCEH, construction and use permits MCEH, MCPBI (?)
Local Agencies All affected cities and jurisdictions for encroachment and construction permits; includes MLHD   Similar to CWP; jurisdictions may vary; MLHD (?)  Construction and use permits within affected jurisdictions
SITE CONTROL
Confirmed site? Duke property confirmed for pilot plant.  "Duke East" site evaluated in PEA as preferred site.  Expect to negotiate property agreement with Duke when County permits are obtained.  Confirmed site for pilot project.  Lease agreement signed with owner of Natl Refractory site.  Negotiating with Duke about use of Duke wastewater rather than own intake; will use own outfall.   Sites and alternatives identified; agreements with owners are needed, including MRWPCA for use of regional outfall.
Alternative sites and projects? Moss Landing scenario in PEA evaluates Granite Rock and Natl Refractories sites.  Five project alternatives in PEA include: (1) Regional Alt with 20,272 AFY yield; (2) Over-sized Pipeline Alt with larger source and transmission pipelines to enable future supply increases; (3) HDD Intake Alt using HDD intake wells near MLPP as feedwater supply rather than Duke intake; (4) North Marina Alt, which locates plant in Armstrong Ranch area with HDD intake and MLPP outfall for brine; and (5) No Project Alt, comprised of existing conservation efforts.  No alternative to National Refractories site needed.  EIR will identify project alternatives.  Several locations for desalination plant, seawater collectors and brine disposal via HDD and MRWPCA outfall evaluated in BRDEIR, along with other project alternatives.
OPERATIONS/OTHER
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 and staff; plan to outsource engineering (K/J), legal, development, contract, admin, construction, management; Poseidon is "Exclusive Management Agent" in current agreerment. Assume certified entity would operate plant in coordination with Cal-Am system, with MPWMD oversight.
Back-up; water production interruptions (e.g., power or intake water) CWP design is consistent w/ Duke operations; forebay, storage tanks and ASR as backup; also other Cal-Am sources in Seaside and CR. Own inake is backup supply if Duke wastewater not available; refurbishing seawater tanks with 11-day supply; generators and onsite solar, if feasible.  Notes County Ordinance requires back-up supply.  Redundant plant design; back-up generators; ASR source
PROJECT PARTICIPANTS
Overview CAW willing to participate in public/private partnerships and regional governance formation.  Proposed project is geared toward existing CAW customers. Regional Alternative includes cities and areas within MPWMD, MoCo, MCWD, Castroville WD and Moss Landing; pending further study and action by entities. Focus on regional plant, including 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.
MPWMD participation MPWMD and CAW have discussedand prepared early drafts of formal Agreement regarding ASR ownership and operations. No approvals to date.  P/SM Board authorized JPA with MPWMD in 2004; MPWMD declined offer at that time. MPWMD currently envisioned as sole sponsor.
Other entities participation Other water purveyors are wholesale water customers. Ongoing discussions with FORA and MCWD.  Met met with Cal-Am in Nov 2004; sent letter in Feb 05. None specified; partnerships possible.
PUBLIC INVOLVEMENT
Outreach programs Formal outreach program with 52 town hall meetings; presentations to jurisdictions. Website. Direct mail communication to CAW customers and stakeholders.  CPUC staff to facilitate DEIR public involvement. Presentations to MPWMD, City of Monterey, MCWD, FORA, DHS, Monterey County, MoCo Planning; Castroville WD as requested Monthly written updates and quarterly public workshops 2002-early 2004.
INFORMATION SOURCES Year 2004:  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).  Year 2005:  PEA on CWP dated July 14, 2005, including technical memoranda on engineering and cost estimates; amended CPCN application for CWP July 2005.  Handout materials from CAW consultant (RBF); matrix input data from RBF July-August 2005, including detailed basis of cost documents. E-mails and telephone calls with RBF in August 2005.  August 25, 2005 Town Hall Meeting presentation by Steve Leonard of CAW and responses to questions.   Year 2004: 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.  Year 2005: Property lease agreement between P/SM and HMBY, LP, March 2004; Development and Management Agreement between P/SM and Poseidon Resources Corp., August 5, 2005; Duke Energy letter to P/SM re use of cooling water, June 13, 2005; table of overdraft, North Monterey County Comprehensive Water Resources Mgt. Plan, January 2002; presentation by Marc Del Piero, Aug. 25, 2005 Town Hall Meeting; phone discussions with Marc Del Piero in August 2005; e-mails and phone discussion with Tom yeager of K/J re cost details.   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. 
CAPITAL COST DETAIL Proposed Project (11,730 AFY) Year 2004 information except line 102, 111 Year 2004 information 
DESALINATION
Intake included in plant cost $500,000 $21,600,000
Pre-treatment included in plant cost included in plant cost included in plant cost
Desal Plant $93,531,000 $81,000,000 $28,250,000
Post-treatment included in plant cost included in plant cost included in plant cost
Brine discharge included in intake cost $1,500,000 $18,656,000
Storage $5,981,000 includes term reser, pump station $14,000,000 included in transmission pipeline
Transmission Pipelines $25,024,000 $16,830,000 $12,692,000
Pump stations included in storage costs included in storage cost included in transmission pipeline
Energy facilities none identified none identified $1,000,000
DESAL SUBTOTAL $124,536,000 $113,830,000 $82,198,000
ASR COSTS $15,578,000 N/A N/A
RECYCLED WATER COSTS N/A N/A N/A
OTHER WATER SOURCES N/A N/A N/A
ADDL CAPITAL COSTS
Pilot Plant $2,585,000 included in desalination project none identified
Distribution system improvements included in desal and ASR costs none identified none identified
Right-of-way $2,000,000 (desal plant site to be leased) none identified (desal plant site to be leased) $6,500,000 (includes site acquisition)
Envtl review, permits, etc. $30,456,000 $3,415,000 $61,702,000
Engineering included in envt/permits $11,383,000 included in envt/permits
Construction Management included in envt/permits $8,537,000 included in envt/permits
Admin/legal included in envt/permits $3,415,000 included in envt/permits
Mitigation measures to be determined Moro Cojo wetland for in-kind mitigation to be determined
Contingencies $15,935,000 $35,251,000 $25,800,000
SUBTOTAL $50,976,000 $62,001,000 $94,002,000
TOTAL CAPITAL COST $191,090,000 $175,831,000 $176,200,000
ANNUAL O&M COST DETAIL for 20,000 AFY plant
Energy included in total O&M $4,432,000 $7,250,000
Facilities O&M included in total O&M $8,928,000 $1,540,000
Mitigation O&M to be determined Moro Cojo wetland for in-kind mitigation to be determined
TOTAL O&M ($/yr) $6,372,000 $13,360,000 $8,790,000
SOURCES FOR COSTS Costs amended in Amended CPCN Application, July 14, 2005, including detailed Basis of Cost documents and tables.  Year 2004 data was based on 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.  Year 2005 estimate of $1100-1200/AF from Development and Management Agreement (page 2), based on Poseidon design experience for Encina project. 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.
ACRONYMS
$/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
CPCN Certificate of Public Convenience and Necessity
CPUC Cal. Public Utilities Commission
CR Carmel River
CSD Community Services District
CWP Coastal Water Project
DBO design-build-operate
DEIR Draft EIR
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
FEIR Final EIR
FORA Fort Ord Reuse Authority
HDD horizontal directional drilling
IS Initial Study
JPA Joint Powers Authority
K/J Kennedy Jenks Engineers, Inc.
MBNMS Monterey Bay National Marine Sanctuary
MBUAPCD Monterey Bay Unified Air Pollution Control District
MCEH Monterey County Environmental Health
MCPBI Monterey County Dept. Planning & Building Inspection 
MCPW Monterey County Public Works
MCWD Marina Coast Water District
MCWRA Monterey County Water Resources Agency
MLHD Moss Landing Harbor District
MLML Moss Landing Marine Laboratory
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/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
SHPO State Historic Preservation Office
SLC State Lands Commission
SRF State Revolving Fund, a loan administered by SWRCB 
SWRCB State Water Resources Control Board
TAMC Transportation Agency of Monterey County
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
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