ITEM:		ACTION ITEMS
14.	CONSIDER REQUEST FOR PLACEMENT OF ADVISORY MEASURE ON THE NOVEMBER 8, 2005 ELECTION REGARDING PUBLIC ACQUISITION OF THE CALIFORNIA AMERICAN WATER DISTRIBUTION SYSTEM, COASTAL DIVISION, MONTEREY DISTRICT
Meeting Date:			May 16, 2005	Budgeted:	N/A
From:			David A. Berger,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			Henrietta Stern	Cost Estimate:	N/A
General Counsel Approval: Yes.
Committee Recommendation: N/A
CEQA Compliance: N/A

SUMMARY: The Board will discuss whether or not to initiate the process of placing an advisory measure on the November 8, 2005 ballot regarding public acquisition of the California American Water (Cal-Am) water distribution system, specifically the Coastal Division, Monterey District. The ballot language has not been developed. If the Board chooses to initiate the process, ballot language would be presented at a subsequent meeting, based on direction at the May 16, 2005 meeting (see below). At the April 18, 2005 meeting, Director Alvin Edwards requested that the Board address this issue at the May 16, 2005 meeting.

According to a phone discussion with Registrar of Voters staff, the next scheduled election for various special districts, school districts and State propositions is November 8, 2005. Mail-in voting is not likely to occur. The deadline for a measure to be placed on the ballot is July 28, 2005. The measure must be accompanied by a formal MPWMD Board Resolution setting the ballot measure. Thus, the meeting of July 18, 2005 is the latest regularly scheduled Board meeting to accomplish this task.

The ballot measure must be worded to afford a “yes” or “no” answer; there are no “multiple-choice” measures allowed. More than one yes/no measure may be placed on the ballot. The cost to the District is based on the number of measures placed on the ballot, and the proportion of printing space as compared to other measures and issues that are on the ballot. Key dates are as follows:

July 28, 2005: Last day to submit MPWMD Ballot Measure to Registrar

August 8, 2005: Last day for proponents/opponents to submit arguments for and against measure(s) to Registrar

September 29, 2005: Registrar begins mailing ballot materials

November 8, 2005: Election Day

RECOMMENDATION: District staff does not have a recommendation on whether or not to approve this item, as this Advisory Ballot Measure is a Director-requested policy issue. However, staff suggests that the Board address the following questions in its deliberations on May 16, 2005:

Ø Should the Board set an advisory measure on the acquisition of the California American Water (Cal-Am) system for the November 8, 2005 election?

Ø If the answer is “yes,” the Board should confirm whether or not the advisory vote on the system to be acquired pertains only to the “main” Cal-Am system (i.e., derives supply from the Carmel River Basin and Seaside Groundwater Basin Coastal Subareas), or also would include independent systems owned and operated by Cal-Am, such as the Bishop, Hidden Hills and Ryan Ranch Units.

Ø Should a Board Committee or other group be formed to develop ballot measure language (or alternatives)?

Ø Should rebuttal arguments be allowed in the election materials? Including rebuttals are optional; they would provide more pro/con opportunity, but would increase the cost.

DISCUSSION: District General Counsel is responsible for preparing the independent analysis of the ballot measure. It is important to note that an Advisory Vote is not binding, and does not commit the District to a specific course of action. Thus, the level of analysis would not be at the same level of detail of an authorizing vote with a required Engineer’s Report on potential costs and financing.

If the Board determines that it will hold an Advisory Vote, District Counsel should brief the Board on the limits that apply to public employees and officials regarding support or opposition to a ballot measure, in compliance with the Fair Political Practices Act.

IMPACT TO STAFF AND FISCAL RESOURCES: The Registrar staff indicated that the cost could be in the $50,000 range for a district-wide ballot. This amount is not included in the Fiscal year 2005-06 proposed budget.

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