Water for Monterey CountyRegional Project

Capital and O&M Cost Description

1

Lyndel Melton, P.E.RMC Water and Environment

Capital and O&M Cost Description Agenda

• Regional Project Description• Basis for Cost Estimates• Capital and O&M Costs• Comparison of Costs

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Regional ProjectUpdated Phase 1 Description

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Phase 1 Project Description

• DEIR Phase 1 Project• 10 mgd Desal Plant• 14 mgd SWTP• +3 ASR Wells• Common Facilities– Terminal Reservoir– ASR Wells & PS– Monterey Pipeline– Valley Greens PS

• Revised Phase 1 Project• 10 mgd Desal Plant• No SWTP• No Added ASR Wells• Common Facilities– Terminal Reservoir– ASR Wells & PS– Monterey Pipeline– Valley Greens PS

4

5

Surface Water Treatment Plant

With Surface Water Treatment

Plant

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No Surface Water Treatment

Plant

Regional Project Supply Sources

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To ASR

To MCWD

To MCWD

CAW Only Supplies

Coastal Water Project Supply Sources

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CAW Only Supplies

Desal Plant Vicinity Plan

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Desal Plant Site Plan

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Need for Partial Second Pass RO System

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With single pass: Boron concentrations can be toxic to some

crops & foliage Maximum chloride and sodium concentrations

are anticipated to be 200 & 180 mg/L Partial second pass would:

Reduce boron levels to <0.5 mg/L Reduce chloride and sodium concentrations to

100 & 80 mg/L

Intake Well Locations

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Intake Well Locations

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Regional ProjectBasis for Cost Estimates

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Basis for Capital Cost Estimating

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Used CAW’s cost criteria/unit costs Reviewed for appropriateness and agree with bases Supplemented with vendor quotes Design/Build for Desal Design-Bid-Construct for Other Facilities

Basis for O&M Estimating

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Used CAW’s O&M Labor Chemical R&R *Membrane Replacement

Power supply costs Desal Plant – MRWMD

Winter – $0.08/kW-hr Summer - $0.12/kW-hr

Desal Wells – PG&E Winter – $0.09/kW-hr Summer - $0.14/kW-hr

Expected Accuracy Ranges for Cost Estimating (Same as CAW Estimates)

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0%

+60%

+40%

+20%

-20%

Expect

ed A

ccura

cy

Range f

or

Cost

Est

imate

Level of Project Definition10% Project Complete (Class 4)30% Project Complete (Class 3)100% Project Complete (Class

1)

Project Completion

Regional ProjectCapital and O&M Cost Estimates

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Table 7 – Estimated Cost – Phase 1 DEIR Project

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Construction Costs

DEIR Regional Project

DEIR Regional Project

w/Partial 2nd Pass

Intake Facilities $ 10,300,000 $ 10,700,000

Desalination Plant $ 64,400,000 $ 81,100,000

SWTP $ 26,000,000 $ 26,000,000

Product Water Delivery $ 39,100,000 $ 39,100,000

Common Components $ - $ -

Contractor's O&P $ 13,400,000 $ 13,500,000

Implementation Costs $ 36,300,000 $ 38,900,000

ROW/Land Acquisition $ - $ -

Contingencies $ 37,900,000 $ 41,900,000

Total Capital $ 227,400,000 $ 251,200,000

Total Annual O&M $ 9,840,000 $ 11,040,000

Cost of Water ($/AFY) $ 2,400 $ 2,670

Annual Production (AFY) 10,500 10,500

Table 8 – Estimated Costs of Common Facilities

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Construction CostsCommon

Components

Common Components $ 37,700,000

Contractor's O&P included above

Implementation Costs $ 11,300,000

ROW/Land Acquisition $ 3,900,000

Contingencies $ 10,600,000

Total $ 63,500,000

Table 9 – Estimated Costs of Phase 1 Project With No Surface Water Supply

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Construction CostsRegional Project

w/no SWTP

Intake Facilities $ 10,700,000

Desalination Plant $ 81,100,000

SWTP $ -

Product Water Delivery $ 30,500,000

Common Components $ -

Contractor's O&P $ 7,300,000

Implementation Costs $ 26,700,000

ROW/Land Acquisition $ -

Contingencies $ 31,300,000

Total Capital $ 187,600,000

Total Annual O&M $ 11,300,000

Cost of Water ($/AFY) $ 2,290

Annual Production (AFY) 10,500

Alternative Project Cost Comparisons

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Basis for Cost Comparisons

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Used CAW’s & MCWD’s cost and production numbers Cost of capital for Regional Project – 5.15% over 30 years Cost of funds for CAW alternatives – 8.55% over 30 years Unit water costs developed to compare all alternatives

(Annualized Capital Costs + Annual O&M Cost) Average Annual Water Production in AFY

Unit Cost of Water =

Table 10 – Comparison of Estimated Costs of DEIR Based Projects

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Construction CostsRegional Project CAW CAW

Moss Landing

Intake Facilities $ 10,300,000 $ 20,000,000 $ 2,800,000

Desalination Plant $ 64,400,000 $ 80,600,000 $ 96,400,000

SWTP $ 26,000,000 $ - $ -

Product Water Delivery $ 39,100,000 $ 25,200,000 $ 41,400,000

Common Components $ - $ - $ -

Contractor's O&P $ 13,400,000 $ 10,900,000 $ 11,200,000

Implementation Costs $ 36,300,000 $ 30,700,000 $ 27,700,000

ROW/Land Acquisition $ - $ 1,000,000 $ 3,300,000

Contingencies $ 37,900,000 $ 33,700,000 $ 36,600,000

Total Capital $ 227,400,000 $ 202,100,000 $ 219,400,000

Total Annual O&M $ 9,840,000 $ 10,100,000 $ 9,300,000

Cost of Water ($/AFY) $ 2,400 $ 3,350 $ 3,440

Annual Production (AFY) 10,500 8,800 8,800

Table 11 – Comparison of Estimated Costs with no Surface Water Supply

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Construction CostsRegional Project

w/no SWTPCAW CAW

Moss Landing

Intake Facilities $ 10,700,000 $ 20,000,000 $ 2,800,000

Desalination Plant $ 81,100,000 $ 80,600,000 $ 96,400,000

SWTP $ - $ - $ -

Product Water Delivery $ 30,500,000 $ 25,200,000 $ 41,400,000

Common Components $ - $ - $ -

Contractor's O&P $ 7,300,000 $ 10,900,000 $ 11,200,000

Implementation Costs $ 26,700,000 $ 30,700,000 $ 27,700,000

ROW/Land Acquisition $ - $ 1,000,000 $ 3,300,000

Contingencies $ 31,300,000 $ 33,700,000 $ 36,600,000

Total Capital $ 187,600,000 $ 202,100,000 $ 219,400,000

Total Annual O&M $ 11,300,000 $ 10,100,000 $ 9,300,000

Cost of Water ($/AFY) $ 2,290 $ 3,350 $ 3,440

Annual Production (AFY) 10,500 8,800 8,800

Table 13 – Sensitivity Analysis

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Assumptions(No SWTP

Regional Phase 1 Project)

Net Benefit Before

Sensitivity

Net Benefit After

Sensitivity

Percent Change Notes

Obtain Grant Funding

$1,060 AFY $1,320 +24% Assumed $40 million in grants. Potential exists for greater levels of grant funding.

50% Increase in Capital Costs with no grant funding

$1,060 AFY $450 -42% Doubling the capital costs of the Regional Project with no Federal or State grants results in a unit water cost that is still $450/AF less than to the CAW North Marina Alternative.

50% Increase in capital costs and obtain grant funding

$1,060 AFY $710 -67% Doubling the capital costs of the Regional Project but including Federal and State grants increases the unit cost of water by 67%, which is still $710/AF less than the CAW North Marina Alternative.

Regional Project – Phase 1 Implementation Schedule

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Project Component Anticipated Water Delivery Date

Seaside Aquifer Storage & Recovery 2009

Sand City Desalination 2009

Recycled Water for Urban Irrigation 2010

Regional Desalination Project 2012

Surface Water Treatment Plant 2014