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CC 2015-11-10 Desal Council PresentationCONSIDERATION OF APPROVAL OF A FORMAL ENDORSEMENT OF INTEREST LETTER TO SLO COUNTY FOR THE ZONE 3 EMERGENCY WATER SUPPLY PROJECT – EXCESS SUPPLY FROM THE PG&E SEAWATER DESALINATION FACILITY November 10, 2015 1 Staff Recommendation Approve a formal Endorsement of Interest letter to SLO County Board of Supervisors for the Zone 3 Emergency Water Supply Project- Excess Supply from the PG&E Seawater Desalination Facility and direct staff to engage in discussions with the County. 2 2 DROUGHT TIMELINE May 2011 City Council Establishes Permanent Water Use Restrictions January 2014 Governor Declares Drought Emergency October 2014 City Council approves the Lopez Low Reservoir Response plan May 2015 Council Adopts Stage 1 Emergency Water Use Restrictions 3 DROUGHT TIMELINE (cont.) May 19, 2015- SLO County (BOS) receives report of potential desalination projects in the County August 6, 2015- SLO County Public Works Department presented a report to the Zone 3 Technical Advisory Committee (TAC) requesting support for the exploration of potential opportunities for excess PG&E desal water 4 4 DROUGHT TIMELINE (cont.) September 17, 2015- Zone 3 Advisory Board submitted a letter to the SLO County Board of Supervisors (BOS) requesting that the County initiate a study session to further evaluate emergency water supply options for San Luis Obispo County including excess PG&E desal water October 15, 2015- County of San Luis Obispo Public Works Department requested that the City of Arroyo Grande, as well as the other contracted Zone 3 agencies confirm interest in a potential Zone 3 Emergency Water Supply project. 5 5 NCMA AGENCIES WATER SUPPLY PORTFOLIO’S 6 6 Drought Continues 7 7 Diminishing Lopez Reservoir Supplies 8 8 Lopez Storage Projections 9 9 10 Declining NCMA Groundwater Levels Source: Q4 2014 Monitoring Report, 2015 Mean Sea Level Trigger Level 10 Preliminary Emergency Supply Options Cloud Seeding State Water Project Unsubscribed Nacimiento Water Water Market Purchases Morro Bay Desalination Plant Exchanges Land Fallowing Lopez Reservoir Minimum Pool Enhanced Conservation Diablo Power Plant Desalination Nacimiento/California Men's Colony Intertie Emergency Indirect Potable Reuse Groundwater Recharge Emergency Seawater/Brackish Water Desalination Facility Price Canyon Produced Water Recovery Upper Lopez Wells 11 11 Supply Options Evaluation Criteria 12 12 Preliminary Evaluation 13 1The scoring and ranking is not intended to be a comprehensive evaluation, but was designed to provide an initial evaluation of potential supply options for further discussion. 13 PG&E Desal- Potential routing 14 14 POTENTIAL CHALLENGES Lack of an existing pipeline to the nearby water purveyors and communities. Cost. Lopez Distribution system modifications. Cost. Location of the existing facility on high-level security private property Permitting issues and environmental concerns Additional information needed! 15 15 ADVANTAGES OF RECOMMENTION Staff Entering discussions only. No commitments at this time. Zone 3 Distribution system already in place for portion of water delivery. Uniquely located. Zone 3 Financing mechanism already in place. Lopez Contract accommodates for system improvements Explored in addition to a recycled water project Desal Plant already constructed and permitted. Potential One-time opportunity for a drought resistant water supply 16 16 Staff Recommendation Approve a formal Endorsement of Interest letter to SLO County Board of Supervisors for the Zone 3 Emergency Water Supply Project- Excess Supply from the PG&E Seawater Desalination Facility and direct staff to engage in discussions with the County. 17 17