Document 65M2npY9BLq9BRN9BaKNn1xY3

ACE 18 Public-Private Partnerships SaWnaDfeireAgoutChooruintytjr Sierra Club v. E P A 18cv3472 NDCA irai Manager me 12, 2018 ED 002061 00160135-00001 $1 billion investment 50 MGD capacity - Up to 56,000 AF/year Designed, built, owned and operated by private developer (Poseidon Water) 30-year Water Purchase Agreement Water Authority takes ownership at end of agreement term. Sierra Club v. E P A 18cv3472 NDCA Tif Increasing San Diego County's Water Supply Reliability through Supply Diversification 2020 80 TAF 16 TAF 2% M etrop olitan W a te r D istrict Im perial Irrigation D istrict T ra n sfer All A m e rica n & C o a ch e lla Can al Lining Sierra Club v. E P A 18cv3472 NDCA H ill San Luis R ey W a te r T ra n sfe r l [ Recycled W ater | T j j S eaw ate r D esalination Tier 5 I...... ! G r o u n d w a t e r [..... ~J L o ca l S u r f a c e W a t e r m i Potable Reuse (TAF=Thousand Acre-Feet) ED 002061 00160135-00003 Considerations in determining the project I m%, i p # % #% ap*% pp%roacn1% Who has the expertise to accomplish the project? Public? Private? Both? What risk(s) is the agency willing to take? Permitting Legal challenges Financing Construction costs and potential overruns Design, Operations and Performance Tier 5 4 ED 002061 00160135-00004 Resistance to a privately-owned base water supply project "Profiteer" issue Complexity of project and need to cover ALL aspects of project in the contract Impact on agency staff and workload Potential limitation of number of bidders Transparency, transparency, transparency Tier 5 5 ED 002061 00160135-00005 Little in-house expertise in desalination within the agency Numerous permit risk and legal challenges Significant outside financial investment obtained and off-public balance sheet Quicker project delivery Relief from potential operational challenges Protection from financial impact of non performance Guaranteed maintenance schedule per the contract 6 ED 002061 00160135-00006 Risk Transfer to Poseidon/Contractor team Price certainty throughout Water Purchase Agreement term Buy-out provisions after 10 years of operation Transfer to public ownership at the end of the 30 year agreement sdcwa.org/moblle-news-app Sierra Club v. E P A 18cv3472 NDCA 1 WWW. Tier 5 I \\s Ciy' <Vi> sd cwa facebook.com/ SanDiegoCousity WaterAuthority ED 002061 00160135-00008