Tag Archives: San Diego County Water Authority

Water Flash: Poseidon Carlsbad Vote Passes

Meeting in progress to considering voting for or against a water purchase agreement with Poseidon Resources Inc. for desalinated water from its proposed $1 billion project in Carlsbad, San Diego County. Photo: Debbie Cook

Public comments have wrapped up and at the San Diego County Water Authority special board meeting to consider a 30-year water purchase agreement with Poseidon Resources Inc. to supply up to (but as yet unknown) 56,000 acre feet of water for San Diego County by desalinating up to 100 million gallons of ocean water to turn it into 50 million gallons of drinking water each day from off the coast of the city of Carlsbad.

Supporting the $1 billion project: big business interests, politicians, chamber of commerce, labor etc. Opposed: environmentalists, ocean users and activist rate payers. About evenly divided so far. The board room is full, about 160 people in attendance. Locals speaking: former Huntington Beach mayor Debbie Cook, former Fountain Valley mayor Gus Ayer. You can listen to the arguments pro and con and to the subsequent vote online at http://www.sdcwa.org/meetings-and-documents. More later.

Update: Board discussion is underway now. “Direct the General Manager to refer to nine Carlsbad Desalination Rate Structure  Alternatives to the Cost of Service Consultant and return to the Board with a recommended alternative to allocated the cost of the Carlsbad Desalination Project: Staff Recommendation: Approve the submission of nine requested Carlsbad Desalination Rate Structure Alternatives to the Cost of Service Consultant.”

Vote on motion by Director Mudd, 2nd by Boyle: 95.85 % of the vote cast and passes unanimously. Only 2 of the 24 water agencies under the SDCWA umbrella have signed a memorandum of intent to buy water to be produced from the the project.

Under consideration: Adopt resolution approving: 1) Water Purchase Agreement with Poseidon Resources; 2) Design Build Agreement; 3) Agreements necessary to accomplish tax exempt project financing through the California Pollution Control Financing Authority; 4) Adjustments to the Capital Improvement Program Budget; 5) Supporting contracts and contract amendments; 6 Other actions necessary for implementation of the Carlsbad Desalination Project; Staff recommendation: approve.

Discussion ongoing.

Vote taken on Water Purchase Agreement passes with 85 percent of the vote (vote is weighted according to property values in each district).

Document room. Photo: Debbie Cook

 

 

San Diego County Water Authority meeting underway (11/29/12): Photo: Debbie Cook
Artist’s conception of proposed Carlsbad ocean desalination plant.

Poseidon Desal Deal? Govt. May Rescue Junk Bond Project

By John Earl
Surf City Voice

Due to soaring cost estimates and lack of private financing for a proposed 50-million-gallon per day Carlsbad desalination project, a government water agency may negotiate a takeover deal with the project’s developer, Poseidon Resources, Inc.

Poseidon Resources is a budding multi-national water baron that also has an identical desalination plant in the dock for Huntington Beach, next to and functionally linked with the AES power plant, on Pacific Coast Highway and Newland Avenue.

What happens in Carlsbad will indicate what could be in store for the Huntington Beach project and residents of our city as well.

The $650 million Carlsbad project would have supplied 56,000 acre feet of drinking water per year to nine of 24 San Diego County water districts under the umbrella of the San Diego County Water Authority (CWA).

But the cost of water derived from the desalination plant will be much higher than previously stated and it would take $630 million in combined public subsidy funds paid in yearly installments over 25-30 years to make the “private” project financially viable, according to a memo written by Oceanside city manager, Peter A. Weiss.

Oceanside is one of the nine water districts, known collectively as The Desal Partners, which had signed water purchasing agreements with Poseidon.

Due to Poseidon’s financing troubles and needed word changes, however, those agreements had to be revised before the project could proceed. But only one member, the city of Carlsbad, has signed a revised contract so far.

“In the past few months it has become apparent that Poseidon’s cost of water is going to be greater than originally proposed,” the memo states. “To make the project viable, Poseidon needs subsidies from the San Diego County Water Authority and Metropolitan Water District (MWD)”, the memo continues.

The CWD is a member of the MWD, which supplies water to 26 southern California water agencies. Continue reading Poseidon Desal Deal? Govt. May Rescue Junk Bond Project