Press Release # 359

Subj: OOG: OCWD Meeting Tonight, SARI, SAWPA, DESAL 5 PM
Date: 1/7/2004 10:42:59 AM Pacific Standard Time
From: Jon V3
To: Jon V3

Dear Ocean Outfall Group (OOG), et al:

Tonight at 5 PM is an OCWD (Orange County Water District) Board of Directors meeting, starting at 5 PM. OCWD is considering a SARI (Santa Ana River Interceptor) brine line that would skirt secondary treatment at OCSD (Orange County Sanitation District).

The SARI Line is being proposed by SAWPA (Santa Ana Watershed Project Authority) and basically consists of a pipeline that collects discharges from groundwater operations upstream, including the Stringfellow Acid Pits, a superfund site.

The SARI line is dangerous because it contains not only salt, but industrial wastes, toxics, etc, and industrial dischargers and dairy farms want to tie into it so as not to have to go through the ordinary sewage treatment process at OCSD or clean up the salt so that it can be used beneficially. SAWPA just wants to use the ocean as a dumping ground, business as usual. See Agenda at:

 

OCWD Agenda 1-7-04

The OCWD website, with directions and map at upper left side of site, is at:

Orange County Water District - A Leader In Groundwater Management, Water Conser

The OCWD building is right next to OCSD on Ellis Ave. The meeting starts at 5 PM. Public Comments are right after the first presentation by SAWPA.

During Public Comments, DESAL opponents can speak against the upcoming EOI (Expressions of Interest) being promulgated by OCWD to gauge interest in private firms to build an OWDP (Ocean Water Desalination Project) that would ultimately be owned and operated by OCWD.

Unfortunately, OCWD is choosing to build their OWDP adjacent to the AES power plant in HB, the same mistake made by Poseidon. Recall also, HB City Councilman Dave Sullivan's worst case scenario where the desal plant is forced on HB by a public agency like OCWD, with no tax revenues to the city of HB.

Therefore, we have to go on the offensive and make sure OCWD nor anyone else builds a desal plant at AES, for the very same reasons we opposed Poseidon at the AES plant in HB.

Below is my letter to OCWD with my suggestions for improving the EOI, which I was invited to do by Wes Bannister, the OCWD Board member from HB. Note my additions in bold type. However, we need speakers to be there tonight to start the public campaign against the desal project by OCWD. Hope to see you there, despite this last-minute notice.

Thanks.

Jan Vandersloot (949) 548-6326

Below is my letter to OCWD:

January 7, 2004

To: Orange County Water District Board of Directors

Re: Recommended changes to Request for Expressions of Interest document

Dear OCWD Board of Directors:

Below are my recommended changes to the EOI for the OWDP project. The changes are in bold type.

Thank you for allowing me to participate in this discussion.

Sincerely,


Jan D. Vandersloot, MD

REQUEST FOR EXPRESSIONS OF INTEREST
OCEAN WATER DESALINATION PROGRAM

The Orange County Water District (OCWD) is requesting Expressions of Interest (EOI) from interested companies/consortiums to provide the cost information for a potential ocean water desalination plant in Huntington Beach, California.

BACKGROUND

OCWD recently completed a Concept Development Paper (Concept Paper) on a potential Ocean Water Desalination Program (attached). The OCWD Board of Directors has instructed staff to obtain additional information on the costs of such a program.

OBJECTIVE

The objective of this Request for EOI is to determine the range of unit water costs and implementation schedule duration for a potential Ocean Water Desalination Plant (OWDP) in Huntington Beach, California. Approximate costs have been discussed in the Concept Paper; however, more precise costs and information are requested from companies/consortiums who are actively involved in developing such plants.

This EOI is not intended to result in a commitment for OCWD or for the companies/consortiums participating. It is not to be considered a commitment from OCWD to purchase water from that plant prior to any agreements reached at a later date. The information will be used to determine if there is sufficient economic viability and interest to justify additional technical and institutional investigations of the OWDP. OCWD reserves the right to reject any and all EOI submittals, waive any EOI formalities, and modify or postpone activities on the potential project at its sole discretion.

CRITERIA AND ASSUMPTIONS

The following criteria and assumptions should form the basis for the cost estimates to be submitted by the EOI:

Criteria

1. Costs are to include all components of the design/build/finance project delivery method. (Note that this approach is different than discussed in the Concept Paper). OCWD intends to purchase and take over operation of the facility at completion subject to acceptance of all performance requirements. OCWD will be responsible for all infrastructure construction outside of the fence at the facility.

2. The plant costs are to be based on a facility capable of producing from 30,000 to 50,000 acre feet per year (afy) of product water while the facility is operating at 90 percent operating level (plant utilization factor [PUF], with product water capacity at 30 to 50 million gallons per day [mgd]).

3. It is anticipated that the OWDP will be located at a site in Huntington Beach adjacent to the current power facility operated by AES. It is also anticipated that the current intake and outfall facilities of that plant would be available for the production plant. EOI should included costs for obtaining necessary agreements from AES for placement of the facility at this location. EOI should include costs of mitigation requirements to address adjacent ocean water quality, marine impacts, surfzone, and beach contamination issues that may be identified during the approval process. EOI should be aware that the City of Huntington each has recently rejected an EIR for a private desalination proposal due to lack of identification and mitigation of environmental concerns raised by several state agencies over marine impacts, surfzone water quality and beach contamination issues, and community opposition to the aging AES plant on the site.

4. In order to assume operational success and regulatory approval, costs should be based on the following minimum process train:

a. Membrane pre-treatment (ultra filtration or microfiltration);
b. Cartridge filtration;
c. Single-pass reverse osmosis;
d. Post-treatment for chemical stabilization; and
e. Disinfection.
f. Disposal of treatment chemicals and brine reject to the Orange County Sanitation District

5. Product water quality maximum levels are:
TDS = 350 mg/L
Sodium = 100 mg/L
Chloride = 150 mg/L

6. Product water quality minimum levels are:
Hardness = 100mg/L (as CaC03)
Alkalinity = 100mg/L (as CaC03) 100 mg/L (as CaC03)

7. Cost estimates should not include federal, state, or regional grants.

8. Delivery Pressure: Compatible to adjacent delivery systems.

Assumptions

1. Product water operations would be provided by OCWD and water would be sold to retail water agencies.

2. OCWD would provide assistance and lead in permitting and agency approvals, costs to be included in EOI. EOI should estimate costs of identifying and mitigating environmental issues such as ocean water and beach contamination issues currently present at the AES site and possibly due to AES operations that would require modification of the AES NPDES permit.

3. Offsite system integration facilities and costs would be handled by others (EOI costs should include all capital and annual operating costs within the treatment plant site and all raw water intake and reject disposal facilities).

ELEMENTS OF SUBMITTAL

Please include the following in your submittal:

1. Cover letter

2. Unit cost of product water ($/af)

a. Total unit cost of capital recovery and annual O&M costs,
b. Total unit cost for initial year of operation and 20th year of operation,
c. Unit cost components fixed portion (including all treatment facilities, buildings,
site developments, pumping, conveyance, yard piping, power, instrumentation,
controls, energy recovery and engineering) and variable portion (including all
power, labor, membrane replacement, chemicals and maintenance)
d. List of items included in unit costs
e. List of items excluded from unit costs (if any)
f. Assumed power demand rate (kWh/af)
g. Total capital costs (including all components listed above).

3. Potential project development implementation schedule (design, construction duration, operational date (completion of acceptance testing),

4. Summary of similar operating projects, including project details and agency references (ocean or sea water membrane desalination plants, other membrane treatment plants),

5. Statement of the company/consortium stating reasons why you should be considered,

6. Please keep your submittal brief (10 pages of text) exclusive of cover letter and preprinted material (project abstracts, brochures), with font six no smaller than 12 point.

EOI Submittals are due no later than 9:00 AM on January 30, 2004. Provide six (6) copies of the submittal, addressed as follows:

Orange County Water District
Attn: Bill Everest, Principal Engineer 10500 Ellis Avenue
Fountain Valley, CA 92708
e-mail: bevercst@OCWD.com
Fax: (714) 378-3381

All requests for additional information should be made to the above in writing (e-mail or fax acceptable). No oral modifications of the Request for EOI shall be valid. Any modifications should be provided to all by written addendum.

Attachment: Ocean Water Desalination Program - Concept Development Paper (October 2003)"

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