Category Archives: Water Boarding

Conservation Vs. Ocean Desalination: Dual Water Board Director is Poseidon’s Point Man

By John Earl

Shawn Dewane of Costa Mesa is the free-marketeer point man for Poseidon Resources, the water dealer that wants to combine public and private funds to build a $1 billion ocean desalination plant in Huntington Beach.

Shawn Dewane
Shawn Dewane at a OCWD Board of Directors meeting. Photo: John Earl

The project would be built under the auspices of the Orange County Water District(OCWD), which manages the county’s groundwater basin and provides 2.4 million north-county residents with 75 percent of their water.

Voters elected Dewane to the OCWD Board of Directors in 2010. Continue reading Conservation Vs. Ocean Desalination: Dual Water Board Director is Poseidon’s Point Man

The Ideological War Behind Poseidon’s Proposed Desalination Plant

By John Earl

Underlying the long-running battles between proponents and opponents of the proposed Poseidon Resources ocean desalination plant is an ideological war between two roughly defined factions: conservationists and free-marketeers.

The Orange County Water District (OCWD), which manages the Santa Ana River and the Orange County Groundwater Basin (a collection of aquifers containing 60 million acre-feet of water), is ground-zero in that war.

(The OCWD supplies 75 percent of the drinking water for 2.4 million residents of north Orange County) Continue reading The Ideological War Behind Poseidon’s Proposed Desalination Plant

Mesa Water on Conservation: In Cuba maybe, but not here

By John Earl

To the five elected directors of the Mesa Water District, conservation is a Trojan horse, unleashing Cuban-style authoritarianism, drop by drop.

The answer to the worst California drought in 500 years, they say, is to sell more water and build more ocean desalination plants.

“The solution to drought is water,” opined Director Fred Bockmiller during a recent (Nov. 10) Mesa workshop. Conservation doesn’t solve the lack of water, he reasoned, “It just means you don’t use it.”

In 2014, after three years of severe drought and foot-dragging by the state’s 400 water agencies, Governor Jerry Brown mandated state-wide conservation standards designed to achieve a 25 percent reduction in overall water use.

The Governor’s plan increased water savings by 28 percent at little if any inconvenience to Orange County residents. Continue reading Mesa Water on Conservation: In Cuba maybe, but not here

Ka-Ching! Tardy Orange County Water District Directors Rake the Cash

By John Earl

Director Steven Sheldon called me out at the August 24, 2016 meeting of the Orange County Water District Board of Directors. 

He did so after I spoke during public comments about habitually tardy directors, including him.

Sheldon asked me a question. When I tried to answer, he got angry and cut me off, arguing that I didn’t know what I was talking about.

I’m going to answer his question, but first some background.

OCWD directors receive $250 per meeting, even if they arrive late and/or leave early, for up to 10 meetings per month at $2,500 per month or $30,000 per year.

Ka-ching! Continue reading Ka-Ching! Tardy Orange County Water District Directors Rake the Cash

Petition: The Orange County Water District Should Livestream its Public Meetings

By John Earl

The purpose of this petition is to request that the Orange County Water District Board of Directors provide live Internet broadcasting and video archiving of all of the District’s public meetings.

{Sign the petition here}

OCWD clowns
A clip from a video that shows OCWD directors Steven Sheldon (holding phone on left) and Roman Reyna (grinning on the right) clowning around while others concentrate on the meeting.

To promote open government and citizen participation in the governing process, all but two cities in Orange County have for years provided “livestreaming” of their public meetings. The South Coast Water District in Dana Point also provides livestreaming of its meetings.

The OCWD manages the Santa Ana River groundwater basin and operates the largest waste-water purification system in the world. It supplies 75 percent of the water used by 2.4 million residents living in 19 cities in north Orange County. Continue reading Petition: The Orange County Water District Should Livestream its Public Meetings

Poseidon Jokes and Mesa Water Laughs Over Proposed Tax Increase for ‘Privately Funded’ Desal Project

By John Earl
Surf City Voice

Orange County taxpayers may have to pay a lot more for a $1 billion Huntington Beach ocean desalination plant if the Mesa Water District gets its way.

For the past decade the developer, Poseidon Resources, has promised taxpayers they won’t have to pay a cent for construction of the desal plant, which would create about 56,000 acre-feet of pricey drinking water every year, if approved.

The tax truth came out unexpectedly at a special Mesa Water board meeting held June 27 to promote the Poseidon project’s supposed benefits.

About 100 Mesa area residents were in the audience.

Invited speaker Robert Sulnick made Poseidon’s case during a 20-minute presentation.

Opponents of the desal plant were not invited to speak.

Sulknick was introduced as an environmental attorney and the executive director of OC WISE–with no mention (until questioned by this reporter after his presentation) that the group is a Poseidon front of developers and that he is one of Poseidon’s paid consultants. Continue reading Poseidon Jokes and Mesa Water Laughs Over Proposed Tax Increase for ‘Privately Funded’ Desal Project

Water Board President’s Coastal Commission Claims Questioned

By John Earl
Surf City Voice

Sometimes a person wants something so badly that he or she starts to believe it’s real–or maybe it actually becomes real.

For Cathy Green, president of the Board of Directors for the Orange County Water District, that something is a $1 billion ocean desalination plant that Poseidon Resources Inc. wants to build along the southeast coast of Huntington Beach in order to sell 56,000 acre feet of desalinated water to the public agency for the next 50 years.

OCWD manages the Santa Ana River groundwater basin and operates the largest toilet-to-tap recycling system in the world, which uses the same reverse osmosis process that would be used by Poseidon but for less than half the price.

The Municipal Water District of Orange County passed the Poseidon project off to OCWD 18 months ago after it failed for years to find buyers for the desalinated water.

Poseidon would add nothing to the District’s water supplies but would replace an equal amount of much cheaper water currently imported from the Metropolitan Water District of Southern California.

Feigns of due diligence aside, the intentions of the Poseidon-obsessed OCWD board have always been clear: there will be a desalination plant and OCWD will contract to buy all of its 56,000 acre-feet of desalinated seawater for the next two generations at about three times or more the price of imported water, regardless the cost or need.

Green, who has often helped Poseidon by-pass important project-related questions, showed up at the June 12 meeting of the California Coastal Commission, which will approve or disapprove two of several permits Poseidon needs to resolve before moving forward.

In the hope of making that happen, she had an important announcement to make.

“I am here to inform the commission that on May 14 that Orange County Water District’s Board of Directors voted to approve a term sheet (pre-contract) with Poseidon Resources to purchase the full 56,000 are feet per year capacity of the Huntington Beach desalination project,” she announced, firmly.

“When the commission was considering the desalination permit application in November of 2013, the issue of who would buy the water was unresolved. Today, this issue has been resolved,” she added.

But Coastkeeper representative Ray Hiemstra, who opposes the Poseidon project, happened to be at the meeting on another matter and was jaw-struck by Green’s announcement.

“It appears that Cathy Green is moving faster than some of the board on OCWD’s support of Poseidon,” he wrote in an email to other Poseidon opponents and the Surf City Voice.

Hiemstra was concerned because he knew that the existence of water purchase agreements was a reason for the Commission’s previous approval of Poseidon’s nearly identical Carlsbad desalination plant.

But no such deal was made with Poseidon at the May 14 OCWD meeting, as Director Harry Sidhu explained before he voted to approve the term sheet and go forward with final contract negotiations.

“It is not a hundred percent done deal today. It is just a good start in moving forward,” he advised the overflow audience there to speak during public comments.

Sidhu was technically correct but he overlooked an important point explained in the staff report. By approving the term sheet, “the District is signaling a desire to explore in much greater detail the exact terms of a final Contract with Poseidon Resources to purchase the plant water.”

The Poseidon train has left the station but Green is highballing it down the track–with the help of most of the other board members, including Shawn Dewane, Stephen Sheldon, Denis Bilodeau, Harry Sidhu, Roman Reyna, and Dina Nguyen.

But OCWD’s chief engineer, John Kennedy, thinks that Green had her facts right.

“She [Green] was just saying that the OCWD, via the approved term sheet, would buy all of the water, which is 100 percent accurate,” he explained. “We are working to see what portion of the water would be recharged into the groundwater basin by OCWD and what portion would go directly to the cities.”

If the project proceeds, he added, OCWD “would have an agreement with Poseidon to buy all of the water,” (emphasis added) along with parallel agreements with any water agencies that agreed to buy the water directly that otherwise would be injected into the groundwater basin.

But that’s a far cry from Green’s claim that the issue of who will buy the water has been resolved.

Who will buy the water was just one of several cost and water distribution issues still unresolved, as Kennedy himself pointed out in his report to the OCWD board on May 14.

That’s why he asked for and received $230,000 for a study to help determine “how much would the Water District take, if we do take the water, how are we going to get it into the ground, how much do the cities’ retail water districts want to take. And we would figure out exactly where the water’s going to go, exactly what pipelines and distribution system improvements we need.” (emphasis added)

Until now, only one Orange County water agency, Santa Margarita in South County, has committed to buy Poseidon’s water. Nor have any of the District’s 19 members, who pump groundwater from the basin for 70 percent of their supply, indicated their willingness. One member agency, the Irvine Ranch Water District, has openly opposed the project.

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Poseidon’s Reliability Promise: Pay More For the Same

By John Earl
Surf City Voice

Will water ratepayers benefit if the Orange County Water District partners with Poseidon Resources Inc. to build a $1 billion ocean desalination plant in Huntington Beach?

The OCWD manages the Santa Ana River (groundwater) basin that provides over 70 percent of the water for central and northern Orange County.

For the past 19 months its board of directors has highballed the proposed project toward a contract with Poseidon that, so far, looks like a bad deal for ratepayers.

That deal would lock OCWD into buying 56,000 acre feet of desalinated water annually for the next 50 years, regardless of need.

And, at 3-10 times the price, it would replace an equal amount of water currently imported from the Metropolitan Water District of Southern California (MET) to help keep the basin at safe levels.

But most of OCWD’s producers (the 19 member agencies who pump water from the basin) will end up paying for Poseidon’s water, whether they want it or not.

One of those producer agencies, the Irvine Ranch Water District, thinks that would be unfair. Continue reading Poseidon’s Reliability Promise: Pay More For the Same

Poseidon Desal: Will OCWD Be Shipwrecked by Mermaids?

By John Earl
Surf City Voice

Centuries ago, explorers sailed Poseidon’s Seven Seas looking for beautiful mermaids and lands full of golden treasures.

Although some of the hapless adventurers may have found what they were looking for, those who didn’t drink too much seawater were usually disappointed.

Today, it looks like Poseidon, the God of the Sea, is up to his old tricks again.

This time, taking corporate form (same as being human under American law), he’s promising to build a new source of water–an ocean desalination plant in Huntington Beach–that will create an additional and reliable supply of water for the Orange County Water District’s ratepayers.

At least that’s what most people think he is promising.

But is he?

Any proposed deal between the OCWD and Poseidon Resources Inc. to build an ocean desalination plant will depend upon a subsidy of $400 million, doled out to Poseidon for a 15-year-period, courtesy of water ratepayers throughout Southern California.

The OCWD manages the Santa Ana River Groundwater Basin, which supplies over 70 percent of the drinking water for Central and North Orange County.

The desalination plant would turn about 56,000 acre feet of seawater into drinking water every year. Continue reading Poseidon Desal: Will OCWD Be Shipwrecked by Mermaids?

Garden Grove Desal Forum Tackles Issues Suppressed by OCWD

By John Earl
Surf City Voice

A public forum held by Garden Grove mayor Bao Nguyen last night at the city’s community center examined the cost of and alternatives to a proposed $1 billion ocean desalination plant promoted by the Orange County Water District.

Those issues–and the panel of local experts who discussed them last night–have been all but ignored by most of the OCWD Board of Directors, some of whom have strong financial and political ties to Poseidon Resources Inc., the company that would build the plant, and its big-business allies.

The OCWD maintains the county’s groundwater basin, which holds 66 million acre-feet of water and provides about 70 percent of the water used in central and northern Orange County, serving 2.3 million people.

For the past 18 months a clique of four board members, Cathy Green, Shawn Dewane, Stephen Sheldon,  and Denis Bilodeau, joined last January by Garden Grove Councilmember Dina Nguyen, have steered the District straight toward a long-term contract with Poseidon.

OCWD staff presented a proposed term sheet (pre-contract) to the board on May 14.

The board approved the term-sheet 7 -3. Nugyen voted for it.

Dina Nguyen on the right at May 14 OCWD meeting. She voted to negotiate a contract with Poseidon. Several Garden Grove residents attending the forum complained that she was non responsive. She did not attend the forum.
Dina Nguyen on the right at May 14 OCWD meeting. She voted to negotiate a contract with Poseidon. Several Garden Grove residents attending the forum complained that she was non responsive. She did not attend the forum.
Nguyen, who was the beneficiary of $11,000 in “independent expenditures” by a Poseidon related PAC in her recent election to the OCWD board, was invited to participate in the forum but was a no-show.

Staff is now negotiating a contract with Poseidon that would lock the district into buying 56,000 acre-feet of desalinated ocean water per year, regardless of need, for the next half-century.

Poseidon’s water would cost about $2,000 an acre-foot out the door, more than 3 times what OCWD currently pays for the untreated water it imports from the Metropolitan Water District of Southern California (MET) to help maintain the county’s groundwater basin supply.

Poseidon and its allies on the OCWD board claim that its more expensive water would be a “reliability premium” akin to car insurance that would add to the county’s water supply portfolio and guarantee water during a drought.

But, in order to be financially viable, Poseidon is demanding hundreds of millions of dollars in ratepayer-backed subsidies for the first 15 years of the contract. In return, MET rules require that Poseidon’s 56,000 acre-feet of desalinated water replace an equal amount of (cheaper) imported water, which would then be made available to water agencies outside of OCWD’s service area.

There would be no net gain in water supply for the district, which would be paying three times as much for Poseidon’s replacement water while subsidizing the cheaper imported water for other agencies. And the county wouldn’t receive more water during a drought.

This reporter has repeatedly asked Poseidon officials and OCWD directors to explain the benefit to ratepayers of paying three times as much for water than necessary and subsidizing cheaper water for ratepayers outside of Orange County, but to so far mum’s the word.

For the first 15 years, the proposed pricing scheme would pay Poseidon a surcharge of up to 20 percent on imported MET water (at the higher MWD treated rate) on top of a 3 percent annual compounded surcharge that recurs for the life of the contract, underlying subsequently declining variable surcharge rates.

A Surf City Voice review of the proposed pricing scheme shows that after 15 years ratepayers would pay up to $2,700 per acre-foot for Poseidon’s water (assuming the required $56,000 af) versus about $1,048 per acre-foot for untreated MET water, which comes out to about $1.8 billion versus about $700 million in total for that period.

That’s about $1.1 billion dollars that could be used for the cheaper and more efficient water supply alternatives ignored by OCWD and Poseidon but examined by the forum panel of experts.

Panel members are former Huntington Beach mayor Debbie Cook, Irvine Ranch Water District’s Peer Swan, Coastkeeper’s Ray Hiemstra, and Garden Grove water officials. Members of the public, including Westminster City Councilmember Diana Carey, also spoke.

 

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