Cal Am Buyout Needs Strong Public Support

By Regina Doyle

Guest commentary Monterey County Herald, Saturday October 4, 2011 by Regina Doyle and Kristi Markey, Directors MPWMD, http://www.montereyherald.com/ci_19018765?IADID=Search-www.montereyherald.com-www.montereyherald.com

Should the Monterey Peninsula Water Management District buy out California American Water?

This question has been raised a number of times over the years by various citizen movements. Most recently, a group called WaterPlus began a public campaign to generate support for the idea. As a result, the water district's board members heard presentations from both WaterPlus and Cal Am on this question. One idea raised during the board discussion was to form a citizen committee to study the issue. However, the next month, the board ultimately decided against this idea.

As board members who support public ownership and yet voted against forming the committee, we have been asked by people the reasons behind our decision. First, our community is faced with an immediate need for secure water supply sources to offset upcoming state cutbacks on Cal Am's illegal pumping from the Carmel River. Providing additional water supply is the primary focus of the MPWMD's energy, time, and money. Buying out the Cal Am system is a complex and difficult undertaking. Cal Am has stated emphatically that it is not willing to sell, and that it will expend significant resources to fend off a forced sale through eminent domain.

The small town of Felton took on a public ownership battle with 1,100 of its 1,300 ratepayers backing the effort, and it still took more years and more money than expected to buy its system from Cal Am.

So, while we believe the community would be better off with public ownership of our water system, it is not an endeavor to undertake lightly. Water is an essential need. All decision-making authority on water supply projects, repairs, rates, etc., should be in the hands of the water users. But we need strong public support. A bond would need to be passed to pay for the purchase of the water system, a bond sufficient for what we think the court may require us to spend. Cal Am would campaign heavily against such a bond, along with local voters and organizations that vehemently oppose the idea.

There is some support for a buyout, perhaps fueled by the regional desalination project's price tag and lopsided governance structure unfair to Peninsula water customers. But contrary to what WaterPlus says, the contracts and state rulings on the regional desalination project suggest that buying Cal Am would not release the Peninsula ratepayers from the financial obligations incurred by Cal Am.

In sum, despite strong feelings on this matter, we felt that this was not the time to spend district resources on leading a discussion about a buyout of Cal Am. The necessary level of public support for such a fight does not exist. If the community does want to mount a serious effort to buy Cal Am, accurate information about the process and possible outcomes must be shared with the voters and significant support generated before such an undertaking can occur.

While we can't speak for the other board members who voted against forming a committee, these two board members did not give up on the idea of buying Cal Am, as some people seemed to think. We simply voted not to form a committee run by district staff. Citizen groups can increase the needed public support for this issue and know that we remain open to the idea if the time is right and the necessary support exists.

Monterey Peninsula Water District Board members Kristi Markey and Regina Doyle represent Division 3 (Monterey) and Division 4 (Pacific Grove, Pebble Beach, Carmel Woods), respectively.