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Years of Litigation Expected for Water Board’s Attempted Takeover of Water Supply System
On Tuesday, October 10, the board of the Monterey Peninsula Water Management District (MPWMD) voted 6-0 (with one recusal from a board member who would have voted YES) to determine that it's in the public interest and necessary for the water district to gain ownership of the Monterey Water System, now owned by the private California American Water Company (Cal Am). The board believes that voters authorized this government takeover when 55.81% of voters in the water district approved Measure J in November 2018. The board has also determined that the water district will pay $448,810,000 ($449 million) to Cal-Am as compensation for losing ownership of the water system.
This does not mean the Monterey Peninsula Water Management District now owns the water supply system. Although a majority of people voted for Measure J, Cal Am has the constitutional right to petition the judicial branch of government to challenge what was approved by voters and in the legislative branch. As stated in the staff report for the water board, "Cal-Am has stated its MWS [Monterey Water System] is not for sale. If the Board adopts a resolution of necessity and the District then proceeds to bring an eminent domain action to acquire Cal-Am’s MWS, District staff and its counsel anticipate Cal-Am will challenge the legal basis for and sufficiency of the resolution and some or all of the Board’s findings to support that resolution."
This litigation will likely take several years. In the meantime, Cal Am will have the option to change positions and sell the water system, and the water district (and voters in the district) will have the option to change positions and decide not to acquire it.
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