EXHIBIT 17-A

To: Director Alvin Edwards

From: David Laredo, MPWMD General Counsel

Date: June 2, 2005 (revised)

Subj: Possible Text for Ballot Measure

Below you will find two different versions of a possible ballot measure (Options 1 and 2). The effect of the first option, if approved by a majority of those electors casting ballots, will be to require the Water Management District to investigate public acquisition of Cal-Am. A second effect of this first option would be to require the District to impose a surcharge upon Cal-Am water bills to collect costs of this investigation. Option 1 could read as follows:

OPTION 1
Shall the Monterey Peninsula Water Management District (MPWMD) be directed to investigate the cost and process to publicly acquire the private water utility system presently owned and operated by the Monterey District of California American Water (Cal-Am), and directed to recover costs of the investigation as a surcharge upon Cal-Am’s water bills?	YES NO

The effect of the second option, if approved by a majority of those electors casting ballots, will be to require the Water Management District to investigate public acquisition of Cal-Am, but not to require imposition of a District surcharge to collect costs of this investigation. The manner and extent to which those costs would be collected would remain a matter of discretion for the District Board of Directors. Option 2 could read as follows:

OPTION 2
Shall the Monterey Peninsula Water Management District (MPWMD) be directed to investigate the cost and process to publicly acquire the private water utility system presently owned and operated by the Monterey District of California American Water (Cal-Am)?	YES NO

U:\staff\word\boardpacket\2005\2005boardpackets\20050620\ActionItems\17\item17_exh17a.doc

Downloaded via e-mail from David Laredo with edits to header by H. Stern