HomeMy WebLinkAbout2004-09-28; Municipal Water District; Resolution 12261
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RESOLUTION NO. 1226
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
CARLSBAD MU N IC I PAL WATER DISTRICT, CARLSBAD,
CALIFORNIA AUTHORIZING THE APPROVAL OF AN
AGREEMENT BETWEEN THE CARLSBAD MUNICIPAL WATER
DISTRICT AND POSEIDON RESOURCES (CHANNELSIDE) LLC
FOR THE PURCHASE OF WATER
WHEREAS, the Board of Directors of the Carlsbad Municipal Water
District adopted Resolution No. 1093 on June 27, 2000, authorizing Poseidon
Resources (Channelside) LLC (hereafter referred to as “Poseidon Resources”) to
conduct a feasibility study on the feasibility of constructing and operating a seawater
desalination project in Carlsbad; and
WHEREAS, Poseidon Resources submitted a feasibility study to the
Board of Directors containing findings that showed a seawater desalination plant
producing up to 50 million gallons a day could feasibly be constructed on land adjacent
to the Encina Power Plant where the power plant’s seawater intake and heated water
outfall could be used to support the desalination project; and
WHEREAS, the Board of Directors considered the report and authorized
an additional, independent study; and
WHEREAS, since the proposed desalination project would produce water
in excess of the District’s needs, it would be necessary to include other water agencies
as users of the anticipated output; and
WHEREAS, the Board of Directors participated in a study commissioned
by the County Water Authority and conducted by the firms of Parsons Brinckerhoff
Quade and Douglas, R.W. Beck and Tectratech to produce an independent review of
the Poseidon Resources Study. A report was submitted to the Board for its
consideration in final form in June 2003 and concluded that Poseidon Resources 5
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business model would produce water with an average per-acre-foot price that was 15-
38% more expensive than a similar project constructed by the San Diego County Water
Authority; and
WHEREAS, thereafter, the San Diego County Water Authority concluded
that it would be in the region’s best interests to allow Carlsbad and Poseidon Resources
to work on developing a local project rather than continue its discussions with Poseidon
Resources for the project. Discussions between District staff and Poseidon Resources
have resulted in the proposed water purchase agreement which is on file in the Office of
the City Clerk; and
WHEREAS, the Board of Directors of the Carlsbad Municipal Water
District has reviewed the proposed Agreement and received comments and input from
the public, users, rater payers, water experts, other public agencies and others,
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the
Carlsbad Municipal Water District as follows:
1. That the above recitals are true and correct.
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2. The Water Purchase Agreement is approved in concept and referred to
staff for a return of documents incorporating the comments and suggestions made by a
majority of the directors.
PASSED, APPROVED AND ADOPTED at a regular meeting of the Board
of Directors of the Carlsbad Municipal Water District held on the 28th day of
September 2004 by the following roll call vote, to wit:
AYES: Board Members Lewis, Finnila, Kulchin, Hall and Packard
NOES: None
ABSENT: None
ATTEST:
RRAINE M. WOOD, Secretary
(SEAL)
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