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HomeMy WebLinkAbout2024-10-03; Encina Wastewater Authority One Water North San Diego County Water Reuse Project (Districts All); Gomez, PazBoard Memo -EWA One Water North San Diego County Water Reuse Project (Districts -All) October 3, 2024 Page 2 Since the beginning of the feasibility study, several factors have impacted the viability of this project, specifically the cost estimates and the regulatory outlook. The EWA revisited the cost estimates that were prepared in a 2018 feasibility study and presented revised cost estimates that reflected more than a 40% increase for the various feasibility study scenarios. This increase would bring the cost of the EWA water that would be produced via advanced treatment processes closer to the cost of producing desalinated water, thus making the project unattractive for the member agencies. As of now, two of the member agency managers have informed the EWA that they have withdrawn their support for this project. The issuance of state regulations for potable reuse standards has also slowed. With the recent rains for the past couple of years, the state's priority for developing, implementing and mandating potable water reuse regulations and standards has been shifting, and additional studies and research are now required to support the new regulations for this water source. Next Steps Two major setbacks have resulted in the EWA revisiting the strategic plan for this project. The EWA is scheduled to provide a draft strategic plan to the member agencies in early 2025 with an expected presentation to the EWA Board of Directors in spring 2025. At that time, the EWA Board will discuss the viability of moving forward with this project. Staff will keep the CMWD Board and the City Council apprised of any future updates. Attachment: A. Joint staff report dated September 27, 2022 cc: Geoff Patnoe, Assistant Executive Manager Cindie McMahon, General Counsel Gary Barberio, Deputy City Manager, Community Services Laura Rocha, Deputy City Manager, Administrative Services Gina Herrera, Assistant General Counsel Jason Haber, Intergovernmental Affairs Director Zach Korach, Finance Director Jeff Murphy, Community Development Director Kristina Ray, Communication & Engagement Director Dave Padilla, Assistant General Manager/District Engineer