Measure O

Measure O is the public water initiative that's on the ballot for June 3. The goal is to have public ownership of the new desalination plant (and associated water delivery infrastructure) since the public is paying for it -- which seems desirable, but of course, the devil is in the details.

Measure O, if passed, would compel the Monterey Peninsula Water Management District (MPWMD) to conduct a feasibility study on purchasing Cal-Am's assets on the peninsula, and, if it looks feasible and cost-effective, to actually make the purchase.  Thus the residents, via the MPWMD, would own the new desalination plant that we are paying for.  A simple proposition, really, and it's that simplicity that has some people worried because the measure is not very specific about how it's all supposed to happen, .

  Full text of Measure O can be found on the Public Water Now website.

Who's For It	Who's Against It
Public Water Now League of Women Voters of Monterey County Water Plus	Carmel River Steelhead Association Monterey County Mayors' Association Monterey County Hospitality Association Monterey Peninsula Chamber of Commerce Monterey Peninsula Regional Water Authority Monterey Peninsula Taxpayers Association Pacific Grove Chamber of Commerce

Arguments for:

• The public is paying for the desalt plant (via rate surcharges)--we should own it
• Ratepayers have been socked with fees and surcharges to pay for Cal-Am's failed and mismanaged projects such as the failed Regional Desalination Project and the San Clemente dam removal.
• Cal-Am has been a poor steward of our water resources, hence the cease-and-desist order to stop overdrafting the Carmel River. 
• Cal-Am is a for-profit company with shareholders to answer to and therefore has little incentive to keep rates low or find cost efficiencies.
• Rates will go up with Cal-Am; rates will go down with public ownership. (according to supporters)

Arguments against:

• Progress is being made towards building a desal plant. Measure O could cause delays. Cal-Am could even stop working on it. 
• The current desal plan (Monterey Peninsula Water Supply Project is counting on the water board granting an extension to the deadline for reducing pumping from the Carmel River. If it looks like the desalt plant is still years away, the board is unlikely to grant an extension. 
• Measure O does nothing to solve the water shortage. It's a distraction right now.
• MPWMD is not a water supply company and has no experience in this area. It would have to set up a billing, customer service, testing facilities, etc. from scratch, or outsource these functions to a private contractor. Either way, how can that save money?
• There's no restriction in Measure O in how much can be spent to purchase Cal-Am or how the purchase would be financed. MPWMD would have carte blanche.
• There are a lot of costs associated with the feasibility study, and then with the whole eminent domain process to seize Cal-Am, in addition to the actual purchase price. 
• Public ownership is a worthy goal; Measure O just isn't the way to do it. 

For more information:

• A Risk We Cannot Afford Committee (sponsored by Cal-Am)
• Public Water Now (sponsor of Measure O)
• Water Plus