Draft Ordinance No ____

Monterey Peninsula Water SystemLocal Ownership and Cost Savings Initiative
Page 1 of 5




DRAFT

ORDINANCE NO. ___

AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE
MONTEREY PENINSULA WATER MANAGEMENT DISTRICT
THE MONTEREY PENINSULA WATER SYSTEM
LOCAL OWNERSHIP AND COST SAVINGS INITIATIVE

The people of the Monterey Peninsula Water Management District do ordain as follows:

Title: The Monterey Peninsula Water System Local Ownership and Cost Savings Initiative

Section I—Name

This Measure shall be designated as the Monterey Peninsula Water System Local Ownership and
Cost Savings Initiative.

Section II—Purpose

The purpose of the Measure is to ensure the long-term sustainability, reliability, cost-
effectiveness and quality of water service within the Monterey Peninsula Water Management
District as a whole, to lower the cost of monthly service to rate-payers, to promote sound water
management measures, and to establish public ownership of water system assets, by establishing
regulations requiring the District to take affirmative action, to the extent financially feasible, to
acquire the water system assets owned and operated by the California American Water Company
that currently provide water service to the District and its ratepayers.

Section III—Findings

1. Water service in the Monterey Peninsula is currently supplied by the California American
Water Company (“Cal Am”), a private, investor-owned utility that acquired the current
water system beginning in 1966.

2. Due in substantial part to Cal Am’s long history of failure in responsibly developing and
competently managing the water resources under its control, the Monterey Peninsula
currently suffers from an insufficient and unreliable supply of potable water. In 1995, for
example, the State Water Resources Control Board ordered Cal Am to cease diverting
water from the Carmel River after years of irresponsible over-pumping and unlawful
diversions. Likewise, in 2007 a State Superior Court ordered Cal Am to restrict its
pumping from the Seaside Groundwater Basin in an effort to protect the aquifer from
over-drafting by Cal Am. Moreover, under Cal Am’s ownership and management, the

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Monterey Peninsula Water SystemLocal Ownership and Cost Savings Initiative
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San Clemente Dam water storage facility has deteriorated to the extent that it is now
useless and will be removed at the ratepayers’ expense.

3. Cal Am has initiated three new water supply projects since the 1990s, all of which have
failed, most recently in 2011. As a result, stranded costs in excess of $35 million have
been incurred and approved by the California Public Utilities Commission (“CPUC”) to
be passed on to current ratepayers. None of these stranded costs have been assumed by
Cal Am or its investors.

4. Cal Am ratepayers have historically endured paying rates for water service that far
exceed the state average. In fact, Cal Am’s rates are among the highest in the state for
service populations of comparable size. They are also extremely unpredictable: from
mid-2010 to mid-2013 Cal Am added new water charges over 25 times, an average of
once every 45 days. Over the same period, Tier 2 and Tier 3 residential rates increased
117 percent, or about 35 percent each year. Rapidly changing and increasing rates alarm
ratepayers, with no relief in sight.

5. As a result of CPUC regulatory practices, Cal Am can only increase its profits based on
how much money it invests. This investment return-based model inherently shortchanges
ratepayers by giving Cal Am little or no incentive to pursue viable non-revenue
generating alternatives to develop or enhance water supply in Monterey Peninsula.

6. Approximately 85 percent of the nation’s water service consumers receive their water
from public water providers. According to a national survey conducted by Food and
Water Watch, customers of for-profit water companies pay on average 33 percent higher
rates for service than customers of public providers.

7. The ratepayers’ overriding urgent need for new reliable and affordable water sources is
best met through the Monterey Peninsula Water Management District (“District”), whose
primary duty is to benefit the citizens of the District, and not the profitability each project
represents to the investors of a for-profit water monopoly.

8. The District was established in 1977 by the “Monterey Peninsula Water Management
District Law” (“District Law”), which charges the District with the integrated
management of the ground and surface water resources in the Monterey Peninsula area.
The District retains broad powers under the District Law to do any and every lawful act
necessary in order that sufficient water may be available for the present or future
beneficial use or uses of the lands or inhabitants within the district.

9. The District Law likewise grants the District broad powers to acquire public or private
water systems necessary or proper to carry out the purposes of the Law, and expressly
grants the District the power of eminent domain to do so.

10. The voters of the District assert that the District should, as soon as practicable and to the
extent permitted by law, pursue the acquisition of Cal Am’s water system assets and
infrastructure in order to deliver maximum value to ratepayers in perpetuity. Such public
ownership of the water system not only will remove Cal Am’s current for-profit,

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Monterey Peninsula Water SystemLocal Ownership and Cost Savings Initiative
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investor-driven bias, but will also eliminate the excessive fees, costly procedures, and
burdensome jurisdictional control of the CPUC over water service on the Monterey
Peninsula.

Section IV— An Ordinance of the Monterey Peninsula Water Management District.

The following Rule 19.8 shall be added to the Monterey Peninsula Water Management
District, Rules and Regulations, Regulation I, General Provisions:

Rule 19.8. Policy of Pursuing Public Ownership of Monterey Peninsula Water System

A. It shall be the policy of the District to establish and maintain public ownership of all
water delivery system assets and infrastructure within its territory, and therefore to
acquire, if economically feasible, preferably through negotiation but through eminent
domain if necessary, all assets of Cal Am, or any successor in interest to Cal Am, within
the District’s territory, as soon as reasonably practicable for the benefit of the District as
a whole.

B. In furtherance of this policy the General Manager shall, within nine (9) months of the
effective date of this Rule 19.8, complete and submit to the Board of Directors for
acceptance, a Feasibility Analysis and Acquisition Plan for the acquisition, long-term
ownership, and management by the Monterey Peninsula Water Management District of
Cal Am’s assets that provide water service within the District that together develop,
store, transmit and deliver potable water to all users within District, including but not
limited to the following assets: extraction wells; injection wells; pump stations; piping;
storage tanks and reservoirs; meters and other connections; administrative offices and
support buildings; rolling vehicle stock; maintenance and operational equipment
(hereafter collectively referred to as the “Water System Assets”).

The Feasibility Analysis and Acquisition Plan shall include, but not necessarily be
limited to, the following components.

i. An estimate of the costs of acquisition of the Water System Assets based on an
appraisal of their fair market value, together with any associated legal and
administrative costs.

ii. A projection of the annual capital and operating costs, revenues, and savings to
ratepayers that would result from the District’s ownership and management of
the Water System Assets.

iii. An identification of all potential sources of funds sufficient to acquire the Water
System Assets at the estimated acquisition cost, including revenue bonds, notes,
levies, fees, taxes, and any other source that the District is authorized by law to
procure.

iv. A statement, based on findings of fact set forth in the body of the Feasibility
Analysis and Acquisition Plan, of whether the ratepayers within the District as a

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whole will realize a long-term net benefit from the District’s acquisition of the
Water System Assets, both in terms of cost-effectiveness and in terms of long
term service reliability.

v. A determination, based on the appraised fair market value of the Water System
Assets reported in the Feasibility Analysis and Acquisition Plan, of the total
amount that would constitute just compensation for the Water System Assets if
acquired by the District.

vi. A list of tasks or steps that the District, acting through its Board, the General
Manager or other staff or consultants, would be required by law to take in order
to acquire the Water Systems Assets through the exercise of its eminent domain
power or otherwise, together with an estimate of the amount of time required to
carry out each task or step, as well as the associated administrative costs
associated with the carrying out each task or step.

C. If the final accepted Feasibility Analysis and Acquisition Plan concludes that the
acquisition and long-term management of the Water System Assets by the Monterey
Peninsula Water Management District is both feasible and beneficial to ratepayers within
the District as a whole, then the Board shall, as soon as practicable, take all necessary and
proper actions consistent with its powers under the District Law, the Eminent Domain
Law, and any other applicable law or regulation, for the Monterey Peninsula Water
Management District to acquire the Water System Assets through a negotiated purchase
and sale agreement if possible, or otherwise through eminent domain.

Section V – Modification Only By Vote of the People

No provision of this Measure shall be changed, amended, or repealed except by a vote of the
People.

Section VI — Effective Date; Application.

The provisions of this Measure shall take effect immediately upon certification of its passage by
the appropriate Election Official. Pending actions or proposals otherwise governed by this
Initiative that have been initiated by the Board of Directors of the District, but that are not yet
final as of the effective date, or that are the subject of pending legal challenge, shall be subject to
the provisions of this Measure.

Section VII — Severability

This Measure shall be broadly construed in order to achieve the purposes stated in this Measure.
If any section, sub-section, sentence, clause, phrase, part, or portion of this Measure is held to be
invalid or unconstitutional by a final judgment of a court of competent jurisdiction, such decision
shall not affect the validity of the remaining portions of the Measure. The voters of the
Monterey Peninsula Water Management District hereby declare that this Measure, and each
section, sub-section, sentence, clause, phrase, part, or portion thereof would have been adopted
or passed even if one or more sections, sub-sections, sentences, clauses, phrases, parts, or

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portions are declared invalid or unconstitutional. If any provision of this Measure is held invalid
as applied to any person or circumstance, such invalidity shall not affect any application of this
Measure that can be given effect without the invalid application.

Section VIII — Conflicting Ballot Measures

In the event that this Measure and another measure or measures relating to the same or similar
subject matter shall appear on the same election ballot, the provisions of the other measures shall
be deemed in conflict with this measure. In the event that this Measure shall receive a greater
number of affirmative votes, the provisions of this Measure shall prevail in their entirety, and the
provisions of the other measure or measures shall be null and void.




















U:\Arlene\word\2014\BoardMeetings\Ordinances\PWN_A\PWN_B.doc
RESOLUTION NO. 2014-02
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
MONTEREY PENINSULA WATER MANAGEMENT DISTRICT
ORDERING AN ELECTION,
REQUESTING COUNTY ELECTIONS TO CONDUCT THE ELECTION,
AND REQUESTING CONSOLIDATION OF THE ELECTION
WHEREAS, On September 6, 2013, Public Water Now submitted to the Monterey
Peninsula Water Management District (Water Management District or District) a Notice oflntent
to Circulate an Initiative Petition entitled the "Monterey Peninsula Water System Local
Ownership and Cost Saving Initiative," and Proof of Publication of the Notice; and
WHEREAS, the stated purpose of the Initiative Petition is to establish a policy to
acquire, if economically feasible, the water system assets of the California-American Water
Company (Cal-Am) within the District's territory, either through negotiation or through the
exercise of eminent domain power; and ·
WHEREAS, the stated reasons for the action are to "ensure the long-term sustainability,
reliability, cost-effectiveness and quality of water service within the Monterey Peninsula Water
Management District as a whole, to lower the cost of monthly service to rate-payers, to promote
sound water management measures, and to establish public ownership of water system assets, by
establishing regulations requiring the District to take affirmative action, to the extent financially
feasible, to acquire the water system assets owned and operated by California American Water
Company that currently provide water service to the District and its ratepayers"; and
WHEREAS, the Initiative Petition contains a proposed Ordinance (Measure) that adds
Rule 19.8 to the District Rules and Regulations and requires the General Manager, within nine
months of Rule's effective date, to complete a Feasibility Analysis and Acquisition Plan for the
acquisition, long-term ownership, and management by the District of Cal-Am's assets. If the
Plan concludes acquisition is feasible, the District shall, as soon as practicable, take all necessary
and proper actions consistent with its powers under District Law and Eminent Domain Law to
acquire Cal-Am's water system assets; and
WHEREAS, the Initiative Petition requests the Measure be submitted to the voters "at
the earliest regular or special election for which it qualifies pursuant to Section 1405 of
California Elections Code"; and
WHEREAS, on January 21, 2014 the Monterey County Registrar of Voters verified a
sufficient number of signatures on the Initiative Petition; and
WHEREAS, pursuant to California Elections Code § 9310, the Board of Directors must
either 1) Adopt the ordinance, without alteration, either at the regular meeting at which the
5 Harris Court, Building G, Monterey, CA 93940 • P.O. Box 85, Monterey, CA 93942-0085
831-658-5600 • Fax 831-644-9560 • http:/ /www.mpwmd.net
Final- MPWMD Resolution No. 2014-02 - Ordering an Election,
Requesting County Elections to Conduct the Election, and Requesting Consolidation of the Election
certification of the petition is presented, or within 10 days after it is presented; or 2) Immediately
order that the ordinance be submitted to the voters, without alteration, pursuant to subdivision (a)
ofSection 1405; and
WHEREAS, the District Board of Directors has determined to order the proposed be
submitted to the voters, without alteration; and
WHEREAS, California Elections Code section 1405(a) provides that with certain
exceptions, the election for a district initiative that qualifies pursuant to Section 9310 shall be
held not less than 88 nor more than 103 days after the date of the order of election; and
WHEREAS, pursuant to section 1405, the election on the measure may be consolidated
with the state regular or special election; and
WHEREAS, the Resolution of the governing body of District shall specify the services
requested; and
WHEREAS, pursuant to Elections Code Section 10002, the District shall reimburse the
county in full for the services performed upon presentation of a bill; and
WHEREAS, pursuant to Elections Code Section 10400, whenever two or more elections,
including bond elections, of any legislative or congressional district, public district, city, county,
or other political subdivision are called to be held on the same day, in the same territory, or in
territory that is in part the same, they may be consolidated upon the order of the governing body
or bodies or officer or officers calling the elections;
WHEREAS, pursuant to Elections Code Section 10403, whenever an election called by a
district, city or other political subdivision for the submission of any question, proposition, or
office to be filled is to be consolidated with a statewide election, and the question, proposition, or
office to be filled is to appear upon the same ballot as that provided for that statewide election,
the district, city or other political subdivision shall, at least 88 days prior to the date of the
election, file with the County Board of Supervisors, and a copy with the elections official, a
resolution of its governing board requesting the consolidatiop. and setting forth the exact form of
 
any question, proposition, or office to be voted upon at the election, as it is to appear on the
ballot. Upon such request, the Board of Supervisors may order the consolidation; and
WHEREAS, pursuant to Elections Code Section 10400, such election for cities and
special districts may be either completely or partially consolidated; and
WHEREAS, the resolution requesting the consolidation shall be adopted and filed at the
same time as the adoption of the ordinance, resolution, or order calling the election; and
WHEREAS, various district, county, state and other political subdivision elections may
be or have been called to be held on June 3, 2014;
WHEREAS, the Board of Directors for the Monterey Peninsula Water Management
District (Water Management District) desires to call an election on the Measure to be
consolidated with the state primary on June 3, 2014; and

MANAGEMENT DISTRICT
Final- MPWMD Resolution No. 2014-02- Ordering an Election,
Requesting County Elections to Conduct the Election, and Requesting Consolidation of the Election
WHEREAS, the Board of Directors acknowledges that the consolidated election will be
held and conducted in the manner prescribed in Section 1 0418; and
NOW, THEREFORE, BE IT RESOLVED AND ORDERED THAT the governing
body of the Water Management District hereby orders the Monterey County Elections
Department to conduct the election to approve or reject the Measure set forth in the "Monterey
Peninsula Water System Local Ownership and Cost Saving Initiative," on the June 3, 2014
ballot; and
BE IT FURTHER RESOLVED AND ORDERED that said governing body of the
Water Management District hereby orders the election consolidated with any and all elections
also called to be held on June 3, 2014 insofar as said elections are to be held in the same territory
or in territory that is in part the same as the territory of the Water Management District, and
requests the Board of Supervisors to order such consolidation under Elections Code Section
10401 and 10403; and
BE IT. FURTHER RESOLVED AND ORDERED that said governing body hereby
requests the Board of Supervisors to permit the Monterey County Elections Department to
provide any and all services necessary for conducting the election and agrees to pay for said
services; and
On motion of Director Byrne,. and second by Director Markey, the foregoing resolution is
duly adopted this 29th day of January, 2014 by the following votes:
AYES:
NAYS:
Directors Byrne, Markey, Thayer, Pendergrass and Potter
None
ABSENT: Directors Brower and Lewis
I, David J. Stoldt, Secretary to the Board of Directors of the Monterey Peninsula Water
Management District, hereby certify that the foregoing is a resolution duly adopted on the 29th
day of January, 2014.
Witness my hand and seal of the Board of Directors this ) !I"' day of February, 2014.
U:\stafi\Resolutions\2014\FINAL2014_02.docx
 
MANAGEMENT DISTRICT
COPY CERTIFICATION
I, David J. Stoldt, Secretary to the Board of Directors of the Monterey Peninsula Water
Management District, hereby certify the foregoing is a full, true and correct copy of
Resolution No. 2014-02 duly adopted on the 29th day of January, 2014.
'2..·\3·11-f
Date
U :\staffiResolutions\20 14\2014 _ 02CopyCert.docx
Calendar for Preparation of June 3, 2014 Ballot Initiative
Prepared by MPWMD, Updated February 25, 2014

March 7, 2014 – Last day to Submit Resolutions of Consolidation
Final deadline for the governing body of a district, city, school or other political subdivision which requests
consolidation of a local election for candidates or measures to file the request with the county Elections
Department.

March 14, 2014 -- Primary Arguments
Last day to file with Monterey County Elections primary arguments in favor of or against local ballot
measures.

March 24, 2014 -- Rebuttal Arguments
Last day to file with Monterey County Elections rebuttal arguments in favor of or against local ballot
measures. Impartial Analysis regarding local ballot measures due.

Please contact Monterey County Elections for the complete election calendar
http://www.montereycountyelections.us/ or 831-796-1499.






U:\Arlene\word\2014\WaterForUsPetition\ElectionCalendar_C.docx

JAN 21 2014
MONTEREY COUNTY ELECTIONS
______________ ... M.._P_.W ... M.......,p \ E   ~ ~ ~ ; : : 1 1 ..
PO Box 4400
Salinas, CA 93912
1370-B South Main Street
Salinas, CA 93901
www.MontereyCountyEiections. us
831-796-1499 Phone
831-755-5485 Fax
elections@co.monterey.ca.us
The Monterey Peninsula Water Service Local Ownership and Cost Savings Initiative
WHEREAS, pursuant to Government Code section 67659, the Monterey Peninsula Water Management District
is deemed a "district" for purposes of initiative and referendum, with the voters ofthe authority being the voters
of said district.
WHEREAS, On January 3, 2014 the initiative petition was submitted to the Monterey Peninsula Water
Management District.
WHEREAS, On January 6, 2014 the initiative petition was transferred to the Registrar of Voters office for
signature verification.
WHEREAS, the petition contained 8,517 signatures for verification.
WHEREAS, Elections Code section 9309 allows for the Registrars office to use a random sampling technique
for verification:
9309. (a) Within 30 days from the date of filing of the petition, excluding Saturdays, Sundays, and
holidays, if, from the examination of petitions pursuant to Section 9308, more than 500 signatures have
been signed on the petition, the district elections official may use random sampling technique for
verification of signatures. The random sample of signatures to be verified shall be drawn in such manner
that every signature filed with the elections official shall be given an equal opportunity to be included in
the sample. A random sampling shall include an examination of at least 500 or 3 percent of the
signatures, whichever is greater.
(b) Ifthe statistical sampling shows that the number of valid signatures is within 95 to 110 percent ofthe
number of signatures of qualified voters needed to declare the petition sufficient, the district elections
official, within 60 days from the date of the filing of the petition, excluding Saturdays, Sundays, and
holidays, shall examine and verify each signature filed.
(c) In determining from the records of registration, what number of valid signatures is signed on the
petition, the district elections official may use the duplicate file of affidavits maintained, or may check
the signatures against facsimiles of voters' signatures, provided that the method of preparing and
displaying the facsimiles complies with law.
(d) The district elections official shall attach to the petition, a certificate showing the result of this
examination, and shall notify the proponents of either the sufficiency or insufficiency of the petition.
(e) If the petition is found insufficient, no action shall betake on the petition. However, the failure to
secure sufficient signatures shall not preclude the filing later of an entirely new petition to the same
effect.
(f) If the petition is found to be sufficient, the district elections official shall certify the results of the
examination to the governing board of the district at the next regular meeting of the board.
WHEREAS, Elections Code section 9310 provides that the minimum number of signatures required for an
initiative petition submitted to a district is not less than 10 percent of the voters in the district, and there are
56,237 voters in the district.
WHEREAS, ofthe 8,517 signatures submitted for verification, 500 signatures were verified by the Registrars
office in the random sampling.
WHEREAS, of the 500 signatures verified in the random sampling, 444 (88.8%) were deemed valid.
WHEREAS, the projected number of valid signature on said petition is 7,563.
NOW, THEREFORE, this office has determined that the initiative petition submitted to the Monterey Peninsula
Water Management District on January 3, 2014 contains 134 percent of the qualified voters needed.
Claudio Valenzuela
Acting Registrar of Voters
County of Monterey
21st day of January, 2014
tt:o5' a.YVI· RECEIVED
INITIATIVE MEASURE TO BE SUBMITTED DIRECTLY TO THE VOTERS
SEP ® 6 2013
TITLE: THE MONTEREY PENINSULA WATER SERVICE LOCAL OWNERSHIP AND
COST SAVINGS INITIATIVE
MD'A'rvln
NOTICE OF INTENTION TO CIRCULATE PETITION AND STATEMENT OF REASONS
Notice is hereby given of the intention of the persons whose names appear hereon of their intention to circulate
the petition within the Monterey Peninsula Water Management District ("District") for the purpose of
establishing a policy to acquire, if economically feasible, the water system assets of the California American
Water Company within the District's territory, either through negotiation or through the exercise of eminent
domain power if necessary. A statement of the reasons for the proposed action as contemplated in the petition
is as follows: the purpose of this Measure is to ensure the lol']g-term sustainability, reliability, cost-effectiveness
and quality of water service within the Monterey Peninsula Water Management D'istrict as a whole, to lower the
cost of monthly service to rate-payers, to promote sound water management measures, and to establish public
ownership of water system assets, by establishing regulations requiring the District to take affirmative action, to
the extent financially feasible, to acquire the water system assets owned and operated by the California
American Water Company that currently provide water service to the District and its ratepayers.
Signed: /s/ Ronald T. Cohen, /s/ George Riley, /s/ Douglas W. Wilhelm, and /s/ Harvey Billig
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
NOTICE TO THE PUBLIC
THIS PETITION MAY BE CIRCULATED BY A PAID SIGNATURE GATHERER OR A VOLUNTEER.
YOU HAVE THE RIGHT TO ASK.
ALL SIGNERS OF THIS PETITION MUST BE REGISTERED TO VOTE IN
THE MONTEREY PENINSULA WATER MANAGEMENT DISTRICT.
Print Name Residence Address ONLY
Signature as Registered City Zip
Print Name Residence Address ONLY
Signature as Registered City Zip
Print Name Residence Address ONLY
Signature as· Registered City Zip
Print Name Residence Address ONLY
Signature as Registered City Zip
I
Print Name Residence Address ONLY
,:;.:
Signature as Registered City Zip
Print Name Residence Address ONLY
Signature as Registered City Zip
Print Name Residence Address ONLY
Signature as Registered City Zip
Print Name Residence Address ONLY
Signature as Registered City Zip
Print Name Residence Address ONLY
Signature as Registered City Zip
Print Name Residence Address ONLY
Signature as Registered City Zip
Official use only
.'
Page 1 of4
INITIATIVE MEASURE TO BE SUBMITTED DIRECTLY TO THE VOTERS
TITLE: THE. MONTEREY PENINSULA WATER SERVICE LOCAL OWNERSHIP AND
COST SAVINGS INITIATIVE
To the Board of Directors of the Monterey
Peninsula Water Management District:
We, the undersigned, registered and qualified
voters of the Monterey Peninsula Water
Management District ("District"), present to the
Board of Directors this petition and request that the
following proposed Ordinance ("Measure") be
submitted to the registered and qualified voters of
the District for their adoption or rejection at the
earliest regular or special election for which it .
qualifies pursuant to Section 1405 of the California
Elections Code. The full text ofthe Measure is as
follows:
The people of the Monterey Peninsula Water
Management District do ordain as follows:
Title: The Monterey Peninsula Water System
Locai.Ownership and Cost Savings Initiative
Section 1-Name
This Measure shall be designated as the Monterey
Peninsula Water System Local Ownership and
Cost Savings Initiative.
Section If-Purpose
The purpose of the Measure is to ensure the long-
term sustainability, reliability, cost-effectiveness
and quality of water service within the Monterey
Peninsula Water Management District as a whole,
to lower the cost of monthly service to rate-payers,
to promote sound water management measures,
and to establish public ownership of water system
assets, by establishing regulations requiring the
District to take affirmative action, to the extent
financially feasible, to acquire the water system
assets owned and operated by the California
American Water Company that currently provide
water service to the District and its ratepayers.
Section Ill-Findings
1. Water service in the Monterey Peninsula is ·
currently supplied by the California American Water
Company ("Cal Am"), a private, investor-owned
utility that acquired the current water system
beginning in 1966.
2. Due in substantial part to Cal Am's long
history of failure in responsibly developing and
competently managing the water resources under
its control, the Monterey Peninsula currently suffers
from an insufficient and unreliable supply of potable
water. In 1995, for example, the State Water
Resources Control Board ordered Cal Am to cease
diverting water from the Carmel River after years of
irresponsible over-pumping and unlawful
diversions. Likewise, in 2007 a State Superior
Court ordered Cal Am to restrict its pumping from
the Seaside Groundwater Basin in an effort to
protect the aquifer from over-drafting by Cal Am.
Moreover, under Cal Am's ownership and
management, the San Clemente Dam water
storage facility has deteriorated to the extent that it
is now useless and will be removed at the
ratepayers' expense.
3. Cal Am has initiated three new water supply
projects since the 1990s, all of which have failed,
most recently in 2011. As a result, stranded costs in
excess of $35 million have been incurred and
approved by the California Public Utilities
Commission ("CPUC") to be passed on to current
ratepayers. None of these stranded costs have
been assumed by Cal Am or its investors.
4. Cal Am ratepayers have historically endured
paying rates for water service that far exceed the
state average. In fact, Cal Am's rates are among
the highest in the state for service populations of
comparable size. They are also extremely
unpredictable: from mid-2010 to mid-2013 Cal Am
added new water charges over 25 times, an
average of once every 45 days. Over the same
period, Tier 2 and Tier 3 residential rates increased
117 percent, or about 35 percent each year.
Rapidly changing and increasing rates alarm
ratepayers, with no relief in sight.
5. As a result of CPUC regulatory practices,
Cal Am can only increase its profits based on how
much money it invests. This investment return-
based model inherently shortchanges ratepayers
by giving Cal Am little or no incentive to pursue
viable non-revenue generating alternatives to
develop or enhance water supply in Monterey
Peninsula.
6. Approximately 85 percent of the nation's
water service consumers receive their water from
public water providers. According to a national
survey conqucted by J.;ood and Water Watch,
customers of for-profit water companies pay on
average 33 percent higher rates for service than
customers of public providers.
7. The ratepayers' overriding urgent need for
new reliable and affordable water sources is best
met through the Monterey Peninsula Water
Management District ("District"), whose primary
duty is to benefit the citizens of the District, and not
the profitability each project represents to the
investors of a for-profit water monopoly.
8. The District was established in 1977 by the
"Monterey Peninsula Water Management District
Law" ("District Law"), which charges the District
with the integrated management of the ground and
surface water resources in the Monterey Peninsula
area. The District retains broad powers under the
District Law to do any and every lawful act
necessary in order that sufficient water may be
available for the present or future beneficial use or
uses ofthe lands or inhabitants within the district. ·
9. The District Law likewise grants the District
broad powers to acquire public or private water
Page 2 of4
INITIATIVE MEASURE TO BE SUBMITTED DIRECTLY TO THE VOTERS
TITLE: THE MONJ"EREY PENINSULA WATER SERVICE LOCAL OWNERSHIP AND
COST SAVINGS INITIATIVE
systems necessary or proper to carry out the
purposes of the Law, and expressly grants the
District the power of eminent domain to do so.
10. The voters of the District assert that the
District should, as soon as practicable and to the
extent permitted by law, pursue the acquisition of
Cal Am's water system assets and infrastructure in
order to deliver maximum value to ratepayers in
perpetuity. Such public ownership of the water
system not only will remove Cal Am's current for-
profit, investor-driven bias, but will also eliminate
the excessive fees, costly procedures, and
burdensome jurisdictional control of the CPUC over
water service on the Monterey Peninsula.
Section IV- An Ordinance of the Monterey
PeninsiJia Water Management District.
The following Rule 19.8 shall be added to the
Monterey Peninsula Water Management District,
Rules and Regulations, Regulation I, General
Provisions:
Rule 19.8. Policy of Pursuing Public Ownership of
Monterey Peninsula Water System ·
A. It shall be the policy of the District to
establish and maintain public ownership of all water
delivery system assets and infrastructure within its
territory, and therefore to acquire, if economically
feasible, preferably through negotiation but through
eminent domain if necessary, all assets of Cal Am,
or any successor in interest to Cal Am, within the
District's territory, as soon as reasonably
practicable for the benefit of the District as a whole.
B. In furtherance of this policy the General
Manager shall, within nine (9) months of the
effective date ofthis Rule 19.8, complete and
submit to the Board of Directors for acceptance, a
FeC!sibility Analysis and Acquisition Plan for the
acquisition, long-term ownership, and management
by the Monterey Peninsula Water Management
District of Cal Am's assets that provide water
service within the District that together develop,
store, transmit and deliver potable water to all users
within District, including but not limited to the
following assets: extraction wells; injection wells;
pump stations; piping; storage tanks and reservoirs;
meters and other connections; administrative
offices and support buildings; rolling vehicle stock;
maintenance and operational equipment (hereafter
collectively referred to as the "Water System
Assets").
The Feasibility Analysis and Acquisition
·Plan shall include, but not necessarily be limited to,
the following components. ·
i. An estimate of the costs of
acquisition of the Water System Assets based on
an appraisal of their fair market value, together with
any associated legal and administrative costs.
ii. A projection of the annual capital
and operating costs, revenues, and savings to
ratepayers that would result from the District's
ownership and management of the Water System
Assets.
iii. An identification of all potential
sources of funds sufficient to acquire the Water
System Assets at the estimated acquisition cost,
including revenue bonds, notes, levies, fees, taxes,
and any other source that the District is authorized
by law to procure.
iv. A statement, based on findings of
fact set forth in the body of the Feasibility Analysis
and Acquisition Plan, of whether the ratepayers
within the District as a whole will realize a long-term
net benefit from the District's ac;quisition of the
Water System Assets, both in terms of cost-
effectiveness and in terms of long term service
reliability.
v. A determination, based on the
appraised fair market value of the Water System
Assets reported in the Feasibility Analysis and
Acquisition Plan, of the total amount that would
constitute just compensation for the Water System
Assets if acquired by the District.
vi. A list of tasks or steps that the
District, acting through its Board, the General
Manager or other staff or consultants, would be
·required by law to take in order to acquire the
Water Systems Assets through the exercise of its
eminent domain power or otherwise, together with
an estimate of the amount of time required to carry
out each task or step, as well as the associated
administrative costs associated with the carrying
out each task or step.
C. If the final accepted Feasibility Analysis and
Acquisition Plan concludes that the acquisition and
long-term management of the Water System
Assets by the Monterey Peninsula Water
Management District is both feasible and beneficial
to ratepayers within the District as a whole, then the
Board shall, as soon as practicable, take all
necessary and proper actions consistent with its
powers under the District Law, the Eminent Domain
Law, and any other applicable law or regulation, for
the Monterey Peninsula Water Management District
to acquire the Water System Assets through a
negotiated purchase and sale agreement if
possible, or otherwise through eminent domain.
Section V- Modification Only By Vote of the
.People
No provision of this Measure shall be changed,
amended, or repealed except by a vote ofthe
People.
Section VI - Effective Date; Application.
The provisions of this Measure shall take effect
immediately upon certification of its passage by the
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INITIATIVE MEASURE TO BE SUBMITTED DIRECTLY TO THE VOTERS
TITLE: THE MONTEREY PENINSULA WATER SERVICE LOCAL OWNERSHIP AND
COST SAVINGS INITIATIVE
appropriate Election Official. Pending actions or
proposals otherwise governed by this Initiative that
have been initiated by the Board of Directors of the
District, but that are not yet final as of the effective
date, or that are the subject of pending legal
challenge, shall be subject to the provisions of this
Measure.
Section VII •• Severability
This Measure shall be broadly construed in order to
achieve the purposes stated in this Measure. If any
section, sub-section, sentence, clause, phrase,
part, or portion of this Measure is held to be invalid
or unconstitutional by a final judgment of a court of
competent jurisdiction, such decision shall not
affect the validity of the remaining portions of the
Measure. The voters of the Monterey Peninsula
Water Management District hereby declare that this
Measure, and each section, sub-section, sentence,.
clause, phrase, part, or portion thereof would have
been adopted or passed even if one or more
sections, sub-sections, sentences, clauses,
phrases, parts, or portions are declared invalid or
unconstitutional. If any provision of this Measure is
held invalid as applied to any person or
circumstance, such invalidity shall not affect any
application of this Measure that can be given effect
without the invalid application.
Section VIII •• Conflicting Ballot Measures
In the event that this Measure and another
measure or measures relating to the same or
similar subject matter shall appear on the same
election ballot, the provisions of the other measures
shall be deemed in conflict with this measure. In
the event that this Measure shall receive a greater
number of affirmative votes, the provisions of this
Measure shall prevail in their entirety, and the
provisions of the other measure or measures shall
be null and void.
DECLARATION OF CIRCULATOR: (to be handwritten by the circulator after all signatures on this section of
the petition have been obtained)
I, :   =     : : :     ~     :       :   :     :   : :       ;   : :       ;       :   : :           • am a voter or qualified to register to vote in the State
of California, and reside at the following address:
(Address, City, State, Zip)
I circulated this petition section and witnessed each appended signature on this section being written. All of
the sheets constituting this petition section were fastened together at the time such signatures were made. To
the best of my information and belief, each signature is the genuine signature of the person whose name it
purports to be.
All signatures on this document were obtained between:
-;;:o-:---:-::--:-.,---:--;---' 20 and ,..---;--:--------' 20_· _.
(Date of first signature) (Date of final signature)
I declare, under penalty of perjury under the laws of the State of California, that the foregoing is true and
correct.
(Circulator's Printed Name) (Circulator's Signature)
Executed at -----------,-----• California. --;;;::-;-;:;---;:--------
(Date Signed)
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