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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Glenn Pruim, 760-602-2751 Glenn.Pruim@carlsbadca.gov FOR CITY CLERKS USE ONLY BOARD ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED D D D CONTINUED TO DATE SPECIFIC D CONTINUED TO DATE UNKNOWN D RETURNED TO STAFF D OTHER-SEE MINUTES D Page 2 ENVIRONMENTAL IMPACT: Permits and the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. 2 1 RESOLUTION NO. 1387 2 AUTHORIZE THE GENERAL MANAGER TO SUBMIT AN 3 4 EXHIBIT 1 APPLICATION TO THE SAN DIEGO COUNTY WATER AUTHORITY FOR FUNDING CONSIDERATION UNDER THE LOCAL WATER SUPPLY DEVELOPMENT PROGRAM 5 WHEREAS, on September 28, 2004, by Resolution No. 1226, the Board approved a 6 Water Purchase Agreement (WPA) between the Carlsbad Municipal Water District (CMWD) and 7 Poseidon Resources (Poseidon), for the purchase of up to 25 MGD of desalinated water from the 8 proposed seawater desalination facility; and 9 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 4LO 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. 27 '" 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 /(SEAL) U