ݺߣ

ݺߣShare a Scribd company logo

Approval of Uniform Contract for Member Agency Purchase of Treated Water from the Water Authority-Carlsbad Seawater Desalination Project - Oct. 25, 2012

•
•
San Diego County Water Authority
San Diego County Water Authority

Presentation given at the San Diego County Water Authority's Water Planning Meeting on Oct. 25, 2012. To view agenda visit www.sdcwa.org/monthly-board-meeting-20

1 of 9
Download to read offline
Site of Proposed Carlsbad Seawater Desalination Facility Approval of Uniform Contract for Member Agency Purchase of Treated Water from the Water Authority-Carlsbad Seawater Desalination Project Water Planning Committee October 25, 2012 1
 Based on Board adopted purchase principles  Allow member agency to purchase local supply  Provide guidance on essential terms of purchase contract  Member agency input from four meetings held July – September 2012  Basic contract terms presented to Board in August  Following receipt of member agency intent, individual contracts would be prepared based on uniform contract  Individual contract presented to Board for approval 2
 Member agency commit to fixed purchase amount of Water Authority-owned supply from Project  Uniform contracts, except for quantity  Full cost recovery  Assumption of same risk profile as Water Authority  Classified as treated local water supply  Member agencies have 60 days from public release of WPA to provide notice of intent to purchase a specific quantity of supply 3
 Member agency commit to fixed minimum purchase amount (contract quantity)  Part of Minimum Annual Demand Commitment under WPA (48 TAF)  Annual quantity taken in twelve equal monthly purchases 4
 If Water Authority purchases additional deliveries, member agency must also purchase additional deliveries  Pro-rata share based on their contract quantity  Member agency can permanently waive access to additional deliveries in contract  Member agency can only purchase additional deliveries if Water Authority has purchased deliveries 5
 Local supply in application of all Water Authority ordinances, plans, and programs  Local supply pursuant to Water Authority’s Water Shortage and Drought Response Plan (WSDRP)  Treated water supply  Delivered in similar manner to other Water Authority treated deliveries  May not receive molecule of desalinated water 6
Aqueduct Carlsbad Desalination Project Costs Costs Product Water Water Purchase Agreement Twin Oaks Transportation Pipeline Design Payments Valley WTP Charge Build Agreement (Inefficiency (Adjusted for Fixed Variable Management DBA Budgeted due to amounts paid Unit Unit Fee/Incentive Dept O&M desalinated under Project Price Price Payment Service Costs production) Costs) Contract X X X X X X X Quantity Additional X X X Deliveries Unexcused Demand X X X X Shortfall Units Excused Demand No Payment for Project Water Shortfall Units Unexcused or Excused Supply No Payment for Project Water Shortfall Units Contract also includes annual administrative fee payment 7
 Fixed contract term equal to WPA term  30 Years  Option to renew for additional 20 years  Up to additional 3 years for force majeure events by Poseidon  Early termination – member agency has ability to terminate contract  If Water Authority acquires Plant pursuant to WPA (other than upon expiration of agreement term)  If revisions to Water Authority WSDRP allocation methodology eliminate or materially reduce local supply benefit 8
Approve the uniform contract for member agency purchase of treated water from the San Diego County Water Authority-Carlsbad Desalination Project 9

More Related Content

Approval of Uniform Contract for Member Agency Purchase of Treated Water from the Water Authority-Carlsbad Seawater Desalination Project - Oct. 25, 2012

  • 1. Site of Proposed Carlsbad Seawater Desalination Facility Approval of Uniform Contract for Member Agency Purchase of Treated Water from the Water Authority-Carlsbad Seawater Desalination Project Water Planning Committee October 25, 2012 1
  • 2. Based on Board adopted purchase principles  Allow member agency to purchase local supply  Provide guidance on essential terms of purchase contract  Member agency input from four meetings held July – September 2012  Basic contract terms presented to Board in August  Following receipt of member agency intent, individual contracts would be prepared based on uniform contract  Individual contract presented to Board for approval 2
  • 3. Member agency commit to fixed purchase amount of Water Authority-owned supply from Project  Uniform contracts, except for quantity  Full cost recovery  Assumption of same risk profile as Water Authority  Classified as treated local water supply  Member agencies have 60 days from public release of WPA to provide notice of intent to purchase a specific quantity of supply 3
  • 4. Member agency commit to fixed minimum purchase amount (contract quantity)  Part of Minimum Annual Demand Commitment under WPA (48 TAF)  Annual quantity taken in twelve equal monthly purchases 4
  • 5. If Water Authority purchases additional deliveries, member agency must also purchase additional deliveries  Pro-rata share based on their contract quantity  Member agency can permanently waive access to additional deliveries in contract  Member agency can only purchase additional deliveries if Water Authority has purchased deliveries 5
  • 6. Local supply in application of all Water Authority ordinances, plans, and programs  Local supply pursuant to Water Authority’s Water Shortage and Drought Response Plan (WSDRP)  Treated water supply  Delivered in similar manner to other Water Authority treated deliveries  May not receive molecule of desalinated water 6
  • 7. Aqueduct Carlsbad Desalination Project Costs Costs Product Water Water Purchase Agreement Twin Oaks Transportation Pipeline Design Payments Valley WTP Charge Build Agreement (Inefficiency (Adjusted for Fixed Variable Management DBA Budgeted due to amounts paid Unit Unit Fee/Incentive Dept O&M desalinated under Project Price Price Payment Service Costs production) Costs) Contract X X X X X X X Quantity Additional X X X Deliveries Unexcused Demand X X X X Shortfall Units Excused Demand No Payment for Project Water Shortfall Units Unexcused or Excused Supply No Payment for Project Water Shortfall Units Contract also includes annual administrative fee payment 7
  • 8. Fixed contract term equal to WPA term  30 Years  Option to renew for additional 20 years  Up to additional 3 years for force majeure events by Poseidon  Early termination – member agency has ability to terminate contract  If Water Authority acquires Plant pursuant to WPA (other than upon expiration of agreement term)  If revisions to Water Authority WSDRP allocation methodology eliminate or materially reduce local supply benefit 8
  • 9. Approve the uniform contract for member agency purchase of treated water from the San Diego County Water Authority-Carlsbad Desalination Project 9