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Pacific Grove Council Approves Public-Private Desal Partnership
April 23, 2012
The Pacific Grove City Council voted 6-1 on April 18 to team up with developer Nader Agha on what could become the Monterey Peninsula's next major water supply.
Dissenting was councilman Robert Huitt, who warned that city staff lack the time and experience needed to lead the project. Councilman Rudy Fischer said the city could seek help from other cities in the Monterey Peninsula Regional Water Authority.
Agha has proposed that the city finance a $129 million bond for the project. That would cover $30 million to purchase a 55-acre piece of his Moss Landing Commercial Park, and $99 million to hire Desal America, a company he co-owns, to build the plant.
The now-defunct Regional Desalination Project, by contrast, had an estimated cost of about $135 million for the desalination plant alone.
The council's vote allows Agha to provide up to $50,000 to pay for the staffing and legal costs of the agreement.
Monterey County law requires all desalination plants to be publicly operated. But today, California American Water is expected to submit a proposal to the state Public Utilities Commission for a privately owned and operated desal plant.
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