HomeMy WebLinkAbout2010-01-26; Municipal Water District; 709; Authorize General Manage to Submit Application to San Diego County Water Authority SDCWA for Funding Consideration Under Local Water Supply Development ProgramCARLSBAD MUNICIPAL WATER DISTRICT - AGENDA BILL
AB# 709
MTG. 1/26/10
DEPT. UTIL
AUTHORIZE THE GENERAL MANAGER TO
SUBMIT AN APPLICATION TO THE SAN DIEGO
COUNTY WATER AUTHORITY FOR FUNDING
CONSIDERATION UNDER THE LOCAL WATER
SUPPLY DEVELOPMENT PROGRAM
DEPT. DIRECTOR /^ffl
CITY ATTORNEY tf&"
CITY MANAGER ,
RECOMMENDED ACTION:
Adopt Resolution No. 1387 supporting the effort to obtain financial incentives from the San
Diego County Water Authority (SDCWA) and authorizing the General Manager to submit an
application to SDCWA for subsidy funding consideration under the Local Water Supply Development
Program.
ITEM EXPLANATION:
A key element to the success of the Carlsbad Seawater Desalination Project is obtaining financial
incentives from a variety of sources. Recently, staff was successful working with the other water
agencies that comprise the San Diego Desal Partners, Poseidon Resources (Poseidon), and the San
Diego County Water Authority (SDCWA) in securing the Metropolitan Water District (MWD) financial
incentives for desalination projects. The SDCWA offers a similar program incentive for projects such
as desalination through their Local Water Supply Development Program (LWSDP). Projects meeting
the eligibility requirements of the LWSDP may receive funding up to $200 per acre foot of water
produced locally. The Desal Partners anticipate the SDCWA financial support will be limited to the
early years of project operation.
Therefore, staff recommends the Board of Directors authorize the General Manager to submit an
application, in conjunction with the Desal Partners, to the SDCWA for funding consideration under the
Local Water Supply Development Program for the Carlsbad Seawater Desalination Project.
DEPARTMENT CONTACT: Glenn Pruim, 760-602-2751 Glenn.Pruim@carlsbadca.gov
FOR CITY CLERKS USE ONLY
BOARD ACTION: APPROVED
DENIED
CONTINUED
WITHDRAWN
AMENDED
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CONTINUED TO DATE SPECIFIC D
CONTINUED TO DATE UNKNOWN D
RETURNED TO STAFF D
OTHER-SEE MINUTES D
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ENVIRONMENTAL IMPACT:
Permits and the environmental impact report (EIR 03-05) for the Carlsbad Seawater Desalination
Project were approved and certified by the City in 2006. EIR 03-05 analyzed the delivery of
desalinated water to CMWD and water districts outside Carlsbad. This delivery would be
accomplished by a proposed extensive pipeline network analyzed in EIR 03-05 and additional new
pipelines recently approved by the City as part of an addendum to EIR 03-05. The requested action
was anticipated by and is consistent with EIR 03-05 and the addendum.
FISCAL IMPACT:
The financial incentives offered through the LWSDP will benefit the District and the San Diego region.
The total financial incentives could amount to $59 million over the term of the agreement and will
allow CMWD to pay less for desalinated water sooner than it would without the subsidies.
EXHIBITS:
Resolution No. 1387 supporting the effort to obtain financial incentives from the
San Diego County Water Authority (SDCWA) and authorizing the General Manager to submit
an application to SDCWA for subsidy funding consideration under the Local Water Supply
Development Program.
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RESOLUTION NO. 1387
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AUTHORIZE THE GENERAL MANAGER TO SUBMIT AN
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EXHIBIT 1
APPLICATION TO THE SAN DIEGO COUNTY WATER
AUTHORITY FOR FUNDING CONSIDERATION UNDER THE
LOCAL WATER SUPPLY DEVELOPMENT PROGRAM
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WHEREAS, on September 28, 2004, by Resolution No. 1226, the Board approved a
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Water Purchase Agreement (WPA) between the Carlsbad Municipal Water District (CMWD) and
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Poseidon Resources (Poseidon), for the purchase of up to 25 MGD of desalinated water from the
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proposed seawater desalination facility; and
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WHEREAS, CMWD was successful in reaching an agreement to obtain a subsidy from10
the Metropolitan Water District of Southern California under its Seawater Desalination Program in
an amount up to Two Hundred Fifty Dollars ($250.00) per acre foot for the production of product
water; and13
WHEREAS, Section 3.1 of the WPA stipulates that the Parties shall cooperate with each
other to apply for and in obtaining any other grants or subsidies.15
WHEREAS, CMWD will work with the Desal Partners and Poseidon to apply for the16
LWSDP financial incentive.
NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Municipal Water District Board18
of the City of Carlsbad, California, as follows:i y
1 . That the above recitations are true and correct.
2. That the Carlsbad Municipal Water District Board of Directors supports the effort to
obtain financial incentives from SDCWA.22
3. That the Carlsbad Municipal Water District Board of Directors authorizes the
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General Manager to submit an application, in conjunction with the Desal Partners, to the SDCWA
for funding consideration under the Local Supply Development Program for the Carlsbad
Seawater Desalination Project.
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PASSED, APPROVED AND ADOPTED at a Special Meeting of the Board of
Directors of the Carlsbad Municipal Water District of the City of Carlsbad on the 26th
day of January, 2010, by the following vote to wit:
AYES: Board Members Lewis, Kulchin, Hall, Packard and Blackburn.
NOES: None.
ABSENT: None.
, President
ATTEST:
LORRAINE M. W0_OJD, Secretary
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