Title
Consider approving the Settlement Agreement on Monterey Peninsula Water Supply Project ("MPWSP") Desalination Plant Return Water; and, authorizing the General Manager to execute the Settlement Agreement on MPWSP Desalination Plant Return Water, substantially in the form attached, subject to County Counsel approval.
Report
RECOMMENDATION:
It is recommended that the Monterey County Water Resources Agency Board of Supervisors:
Approve the Settlement Agreement on MPWSP Desalination Plant Return Water; and, authorize the General Manager to execute the Settlement Agreement on MPWSP Desalination Plant Return Water substantially in the form attached, subject to County Counsel approval.
SUMMARY:
The Agency Board of Directors and Agency Board of Supervisors approved, on January 25, 2016 and February 2, 2016, respectively, a Return Water Planning Term Sheet ("Term Sheet"), outlining the principles concerning an arrangement under which California American Water Company ("Cal-Am") would provide Desalination Plant Return Water to Castroville Community Services District ("CCSD") and the Agency's Castroville Seawater Intrusion Project ("CSIP"). Use of this water will serve to decrease groundwater pumping by CCSD and the Agency.
The Term Sheet anticipated that certain Parties to the Term Sheet would negotiate and enter into water purchase agreements under which Cal-Am would deliver Return Water. This Settlement Agreement on MPWSP Desalination Plant Return Water ("Settlement Agreement") and a companion Return Water Purchase Agreement are now the result of those negotiations.
DISCUSSION:
Cal-Am proposes a Monterey Peninsula Water Supply Project ("MPWSP" or "Project") which includes a desalination plant that will provide a potable water supply for Cal-Am's Monterey Peninsula service area. Rather than using an open-ocean intake that would produce only seawater as source water for the desalination plant, the Project desalination plant will produce its ...
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