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Home My WebLink About12-19-12 Desal Committee PacketOTAY WATER DISTRICT DESALINATION PROJECT COMMITTEE MEETING and SPECIAL MEETING OF THE BOARD OF DIRECTORS 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA Board Room WEDNESDAY December 19, 2012 11:30 A.M. This is a District Committee meeting. This meeting is being posted as a special meeting in order to comply with the Brown Act (Government Code Section §54954.2) in the event that a quorum of the Board is present. Items will be deliberated, however, no formal board actions will be taken at this meeting. The committee makes recommendations to the full board for its consideration and formal action. AGENDA 1. ROLL CALL 2. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JU- RISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA DISCUSSION ITEMS 3. INFORMATIONAL REPORT ON THE ROSARITO DESALINATION PLANT AND THE OTAY MESA CONVEYANCE AND DISINFECTION SYSTEM PROJECTS (KENNEDY) 4. ADJOURNMENT BOARD MEMBERS ATTENDING: Jose Lopez, Chair Gary Croucher 2 All items appearing on this agenda, whether or not expressly listed for action, may be delib- erated and may be subject to action by the Board. The Agenda, and any attachments containing written information, are available at the Dis- trict’s website at www.otaywater.gov. Written changes to any items to be considered at the open meeting, or to any attachments, will be posted on the District’s website. Copies of the Agenda and all attachments are also available through the District Secretary by contacting her at (619) 670-2280. If you have any disability that would require accommodation in order to enable you to partici- pate in this meeting, please call the District Secretary at 670-2280 at least 24 hours prior to the meeting. Certification of Posting I certify that on December 14, 2012 I posted a copy of the foregoing agenda near the regular meeting place of the Board of Directors of Otay Water District, said time being at least 24 hours in advance of the meeting of the Board of Directors (Government Code Section §54954.2). Executed at Spring Valley, California on December 14, 2012. ______/s/_ Susan Cruz, District Secretary _____ STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: January 8, 2013 SUBMITTED BY: Bob Kennedy Senior Civil Engineer Ron Ripperger Engineering Manager CIP./G.F. NO: P2451- 001101 DIV. NO. 2 APPROVED BY: Rod Posada, Chief, Engineering German Alvarez, Asst General Manager Mark Watton, General Manager SUBJECT: Informational Update for the Rosarito Desalination Plant and the Otay Mesa Conveyance and Disinfection System Projects GENERAL MANAGER’S RECOMMENDATION: No recommendation. This is an informational item only. COMMITTEE ACTION: Please see Attachment A. PURPOSE: To update the Otay Water District (District) Board of Directors (Board) on the progress of the Rosarito Desalination Plant and the Otay Mesa Conveyance and Disinfection System Projects (Project)(see Exhibit A for Project location). ANALYSIS: The Project has two different components - the Rosarito desalination plant in the Mexican side and the conveyance and disinfection system in the United States’ (U.S.) side. The desalination plant and the conveyance system south of the border are being developed by NSC Agua S.A. de C.V. (NSC Agua), a Mexican Corporation with various investors and Consolidated Water Co. Ltd., a publicly-traded company that operates desalination plants and water distribution systems in the Caribbean basin and in Southeast Asia and Mexico. AGENDA ITEM 3 2 The Project is comprised of a 100 million gallon per day seawater reverse osmosis desalination plant, together with a pump station and pipeline to convey the water to Tijuana and excess production water to the United States border with Mexico. The primary purpose of the Project is to provide potable water service to customers in Mexico and to provide a reliable supply of excess production water to Otay in the U.S. To that effect, the first step before the design and construction of the desalination plant is to install a pilot plant to determine the type of pre-treatment and plant design to be used. NSC Agua has selected Doosan Heavy Industries and Construction to build the pilot plant of the Rosarito Desalination Plant. Doosan is one of the few companies in the world that has proprietary technologies for all three major desalination types: Multi Stage Flash, Multi Effect Distillation, and Reverse Osmosis. The Project will provide a potable water transmission pipeline and pump station to convey the desalinated water from the border between the U.S. and Mexico on Otay Mesa to Roll Reservoir on Otay Mesa. Given the many challenges in advancing this Project, the District has retained specialty consultants to provide technical, regulatory, bi-national, and policy assistance. On March 15, 2012, Consolidated Water Co. LTD. announced that it had acquired control of 75% of the shares of NSC Agua. With the resolution of certain internal NSC Agua issues that delayed this Project, the District has renewed the Letter of Intent with NSC Agua. In December 2012, the Board Desal Committee discussed with the General Manager the signing of a non-binding Letter of Intent (LOI) with NSC Agua to negotiate a Water Purchase Agreement for the purchase of desalinated water produced from the Rosarito Desalination facility and delivered to the U.S.- Mexico border at a point near the proposed Third Border Crossing on Otay Mesa. This is the second LOI signed by the District and NSC Agua. The previous LOI was signed on February 5, 2009. NSC Agua is pursuing the purchase of two parcels of land in Rosarito for the desalination plant that are adjacent to the Presidente Juarez power plant. NSC Agua has secured the purchase rights for these two parcels. NSC Agua has also secured permission for the construction of the pilot plant on the power plant site and is presently testing the first treatment phase of the pilot plant. Negotiations with the Comisión Federal de Electricidad (Federal Electricity Commission), the Mexican state-owned electric utility widely 3 known as CFE, are progressing on the agreements to secure permanent easements and rights to connect pipelines to and from the desalination plant to the seawater intake and outlet structures of the power plant. In celebration of these significant milestones, NSC Agua is considering scheduling a ribbon cutting ceremony at the pilot plant site early next year. The United States and Mexico established the International Boundary Commission in 1889. The Water Treaty of 1944 expanded the duties and the responsibilities of this international body and renamed it the International Boundary and Water Commission (IBWC), or CILA for the Mexican section. Their jurisdiction extends to the parts of the Colorado River that forms the land boundary between the United States and Mexico and administers the many boundary and water-rights treaties and agreements between the two nations. Two years after the earthquakes in 2010 that damaged Mexico’s infrastructure south of Mexicali, Minute Order 319 was signed on November 20, 2012. Minute Order 319 allows Mexico to store water in Lake Mead and includes a five year test program between the United States and Mexico that reduces deliveries under low reservoir levels at Lake Mead and allows Mexico to share in increased surplus flows under high reservoir conditions. The pact will also have Arizona and Nevada water agencies pay for improvements to Mexico’s infrastructure and to implement water conservation measures that will generate an estimated 100,000 acre-feet of water over the five years. Those agencies would split about half of that water, with the rest going to Metropolitan Water District. In Minute Order 319, desalination can be considered a methodology to further conserve water for the environment, the farmers, and relieve some of the pressure from the Colorado River. The language allows a public-private partnership, that NSC Agua project will be proposing, and has generated some interest into how this Project would fit into Minute Order 319 or subsequent Minute Orders. The November signing ceremony for Minute Order 319 and the proposed ribbon cutting event at the Rosarito pilot plant site along with securing the property for the desalination plant and the pending agreement with the CFE are all indicators this Project is moving forward. The District put all consultants on hold about two years ago until certain milestones south of the border have been reached. The District will need to re-initiate the work on this side of the border to keep pace with the project south of the border. Concerning the facilities north of the border, the District awarded a contract to AECOM Technical Services for the design of 4 a large diameter pipeline 3.5 miles long, a pump station, and a disinfection facility on October 21, 2010. Part of the contract also includes CEQA/NEPA compliance and other services to get California Department of Public Health permitting. AECOM has provided some preliminary studies, but hasn’t started yet the bulk of the services until NSC Agua met some milestones such as property acquisition, pilot plant installation, and securing easements from CFE. Now that these milestones are met, staff will issue a Notice to Proceed to AECOM. FISCAL IMPACT: Joe Beachem, Chief Financial Officer No budget impacts. (See Attachment B Budget Detail). STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide high value water and wastewater services to the customers of the Otay Water District in a professional, effective, and efficient manner” and the General Manager’s Vision, “A District that is at the forefront in innovations to provide water services at affordable rates, with a reputation for outstanding customer service.” LEGAL IMPACT: None. BK/RR:jf P:\WORKING\CIP P2451 Desalination Feasibility Study\Staff Reports\Board 01-02-13\BD 01-02-13, Staff Report, Rosarito Desal Project Update Info Item, (BK-RR).doc Attachments: Attachment A – Committee Action Attachment B – Budget Detail Exhibit A – Location Map Exhibit B – Presentation ATTACHMENT A SUBJECT/PROJECT: P2451-001101 Informational Update for the Rosarito Desalination Plant and the Otay Mesa Conveyance and Disinfection System Projects COMMITTEE ACTION: The Desalination Committee (Committee) reviewed this item at a meeting held on December 19, 2012. The Committee supported Staff’s recommendation. NOTE: The “Committee Action” is written in anticipation of the Committee moving the item forward for Board approval. This report will be sent to the Board as a Committee approved item, or modified to reflect any discussion or changes as directed from the Committee prior to presentation to the full Board. ATTACHMENT B SUBJECT/PROJECT: P2451-001101 Informational Update for the Rosarito Desalination Plant and the Otay Mesa Conveyance and Disinfection System Projects Date Updated: November 16, 2012 Budget 30,000,000 Planning 001101 Labor 446,289 446,289 446,289 Printing 61 61 - 61 MAIL MANAGEMENT GROUP INC Mileage Reimbursement 138 138 - 138 PETTY CASH CUSTODIAN Parking and Tolls 88 88 - 88 PETTY CASH CUSTODIAN Parking and Tolls 45 45 - 45 US BANK CORPORATE PAYMENT Parking and Tolls 21 21 - 21 WATTON, MARK Airfare and Transportation 40 40 - 40 PETTY CASH CUSTODIAN Airfare and Transportation 8,717 8,717 - 8,717 US BANK CORPORATE PAYMENT Airfare and Transportation 78 78 - 78 WATTON, MARK Lodging 3,262 3,262 - 3,262 US BANK CORPORATE PAYMENT Lodging 1,590 1,590 - 1,590 WATTON, MARK Lodging 729 729 - 729 BONILLA, JAIMELodging472 472 - 472 CONSOLIDATED WATER COMPANY Meals and Incidentals 249 249 - 249 PETTY CASH CUSTODIAN Meals and Incidentals 38 38 - 38 US BANK CORPORATE PAYMENTMeals and Incidentals 194 194 - 194 WATTON, MARK Meals and Incidentals 395 395 - 395 CONSOLIDATED WATER COMPANY Business Meetings 180 180 - 180 PETTY CASH CUSTODIAN Business Meetings 949 949 - 949 US BANK CORPORATE PAYMENT Insurance 26 26 - 26 PETTY CASH CUSTODIAN Insurance 27 27 - 27 US BANK CORPORATE PAYMENT Professional Legal Fees 43,175 43,175 - 43,175 SOLORZANO CARVAJAL GONZALEZ Y Professional Legal Fees 15,914 15,914 - 15,914 STUTZ ARTIANO SHINOFF Professional Legal Fees 152,066 152,066 - 152,066 GARCIA CALDERON & RUIZ LLP Other Legal Expenses 9,975 9,975 - 9,975 GARCIA CALDERON & RUIZ LLPOther Legal Expenses 38 38 - 38 STUTZ ARTIANO SHINOFF Consultant Contracts 98,577 98,577 - 98,577 CAMP DRESSER & MCKEE INC Consultant Contracts 48,654 48,654 - 48,654 MARSTON+MARSTON INCConsultant Contracts 12,200 12,200 - 12,200 REA & PARKER RESEARCH Consultant Contracts 4,173 4,173 - 4,173 SALVADOR LOPEZ-CORDOVA Consultant Contracts 152,066 72,066 80,000 152,066 SILVA SILVA INTERNATIONAL Consultant Contracts 70,200 61,200 9,000 70,200 HECTOR I MARES-COSSIO Consultant Contracts 7,000 7,000 - 7,000 BUSTAMANTE & ASSOCIATES LLC Consultant Contracts 32,340 32,340 - 32,340 BROWNSTEIN HYATT FARBER Service Contracts 500 500 - 500 REBECA SOTURA NICKERSON Service Contracts 106 106 - 106 SAN DIEGO DAILY TRANSCRIPT Total Planning 1,110,571 1,021,571 89,000 1,110,571 Design 001102 Labor 75,604 75,604 75,604 Meals and Incidentals 14 14 - 14 PETTY CASH CUSTODIAN Consultant Contracts 5,535 5,535 - 5,535 MICHAEL R WELCH PHD PE Consultant Contracts 3,910,297 33,215 3,877,082 3,910,297 AECOM TECHNICAL SERVICES INC Consultant Contracts 5,000 5,000 - 5,000 ATKINS Consultant Contracts 8,818 8,818 - 8,818 CPM PARTNERS INC Consultant Contracts 276 276 - 276 MARSTON+MARSTON INC Service Contracts 343 343 - 343 SAN DIEGO UNION-TRIBUNE LLC Total Design 4,005,887 128,805 3,877,082 4,005,887 Construction 001103 Labor 329 329 329 Total Construction 329 329 - 329 Grand Total 5,116,787 1,150,705 3,966,082 5,116,787 Vendor/Comments Otay Water District P2451 - Rosarito Desalination Facility Conveyance Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost 571-136.7 MG 870-110.9 MG OTAY MESA RD EN R I C O F E R M I D R AL T A R D DONOVAN STATEPRISON RD DONOVAN STATEPRISON G. F. BAILEYDETENTION FACILITY !V!V ÍÒ PROPOSEDPUMP STATION A PROPOSEDTREATMENTFACILITY PR O P O S E D P I P E L I N E A 1.25 MILES SA N Y O R D SR - 1 1 FUTURE SR-11 FUT U R E PR O P O S E D P I P E L I N E B !V!V PROPOSEDPUMP STATION B USAUSA MEXICOMEXICO OWD Boundary OWD Boundary P:\ W O R K I N G \ C I P P 2 4 5 1 D e s a l i n a t i o n F e a s i b i l i t y S t u d y \ G r a p h i c s \ E x h i b i t s - F i g u r e s | E x h i b i t A . m x d F0 2,0001,000 Feet OTAY WATER DISTRICTOtay Mesa Conveyance and Disinfection Facility ProjectEXHIBIT A §¨¦ §¨¦ §¨¦ §¨¦ ÃÅ ÃÅ ÃÅ ÃÅ ÃÅ ÃÅ ÃÅ ÃÅ ^_ PROJECTSITE VICINITY MAP NTS DIV. 5 DIV. 2 DIV. 1 DIV. 3 DIV. 4 5 8 8 805 11 9454 94 125 905 125 905 125 3.2 mi.3.7 mi.24 mi. Existing OWD PipelinesProposed Pipeline AProposed Pipeline BMexico Pipeline ROSARITO DESALINATION PLANT AND THE OTAY MESA CONVEYANCE AND DISINFECTION SYSTEM PROJECTS (100 MGD) OTAY WATER DISTRICT January 8, 2013 Exhibit B San Diego County Water Authority TEAM MEMBERS 2 OTAY WATER DISTRICT Project Background 100 MGD desalination plant in Rosarito, Baja California, Mexico. Adjacent to the existing power plant. Use of existing ocean intake and cooling ocean water from the power plant. 25 miles pipeline to the border. One interconnection to “El Florido” Treatment Plant in Tijuana B.C. 50 MGD for Tijuana/Rosarito and the remainder for Otay Water District or other agencies. Water quality to meet International and CDPH standards. Proposed facilities on the U.S. side include monitoring stations, UV disinfection, and an existing storage tank (37 MGD). All chemicals will be NSF certified. NSC Agua has secured permission for the construction of the Pilot Plant on the power plant site and is already testing the first treatment phase. 3 Otay Water District List of Consultants CDM Consulting Engineer Michael R. Welch, Ph.D., P.E. Consulting Engineer AECOM Consulting Engineer Salvador Lopez-Cordova Liaison for Mexican Federal, State & Municipal including CESPT Marston & Marston Inc. Public Relations - Public Outreach Brownstein Hyatt Farber Schreck, LLP Legislative & Legal Strategy Silva-Silva International Legislative Advocacy Solorzano Carvajal Gonzales Perez-Correa Attorney Hector I Mares-Cossío Bi-National Advisor Cruz Bustamante Governmental Affairs Advisor Rea & Parker Research Survey/Market Research Atkins Consulting Engineer 4 5 Facilities in Rosarito 6 7 8 Pipeline From Rosarito to U.S. Border Rosarito to El Florido ~ 17 Miles El Florido to U.S. Border ~ 8 Miles Total ~ 25 Miles 9 Counterpart Agencies in Mexico / U.S. CILA MEXICO USA IBWC NADB SEMARNAT EPA CONAGUA CDPH lead EPA to some extent PROFEPA EPA Attorney’s office CEA DWR to some extent Water Districts to some extent CESPT Otay Water District SPA CalEPA Bi-national Federal State BECC/COCEF Ayuntamiento City government Municipal SSA CDPH lead EPA to some extent Some functions are conducted by different levels of government in each country (e.g., Federal vs. State, or State vs. Local) Bi-national Federal State Municipal 10 11 IBWC - Minute 319 Allows Mexico to store water in Lake Mead. 5-Year test program that reduces deliveries to Mexico when reservoirs are low and increases deliveries when reservoirs levels are high. Allows Nevada and Arizona to invest in Mexico’s infrastructure to conserve water to be shared with many agencies. Bi-national Desalination can be considered methodology to further conserve water for the environment and for farmers. 12 Each Side of this Project Includes a Variety of Critical Issues Water Quality Water Quality CDPH Approval CDPH Approval Optimized Cost Optimized Cost 13 Environment Environment Federal Approval Federal Approval 14 Otay Mesa Conveyance and Disinfection Facility COSTS OF FACILITIES North of the Border Treatment Scenario Capital Costs A. Disinfection treatment only in U.S., with a waiver of specific filtration req’s through CDPH ± $800,000 B. Full filtration and disinfection in U.S ± $17,000,000 Conveyance 18,000 LF of a 54-inch pipeline ± $20,000,000 Pump Station ± $9,000,000 15 16 Project Study Otay Mesa Conveyance and Disinfection System Project – White Paper: Provides a summary of actions and project elements needed to facilitate CDPD approval of project. ROSARITO DESALINATION PLANT AND CONVEYANCE (100 MGD) OTAY WATER DISTRICT Questions ? 17 San Diego County Water Authority