item:		action item
15.	Consider formation of ad hoc committee to assess waterplus proposal for public ownership of california-american water, monterey district
Meeting Date:			August 15, 2011	Budgeted:	N/A
From:			Darby Fuerst,	Program/	Services & Supplies
			General Manager	Line Item No.:	Professional Fees
Prepared By:			Arlene Tavani	Cost Estimate:	N/A
General Counsel Review: No
Committee Recommendation: N/A
CEQA Compliance: N/A

SUMMARY: At the July 18, 2011 Board meeting, the directors expressed an interest in formation of an ad-hoc committee to analyze the cost for public ownership of California-American Water’s (Cal-Am) Monterey District, describe governance for a publicly owned utility, and define the pubic utility’s scope of responsibility. The directors specified that the committee should not recommend a position of support or disapproval for public ownership of Cal-Am’s Monterey District. The Board’s request was in response to the July 18, 2011 presentation to the Board by WaterPlus, a local organization that advocates for public ownership of Cal-Am and has developed an analysis of the cost for purchase of the water utility.

STAFF RECOMMENDATION: The Board should adopt Exhibit 15-A, the draft Charge to the MPWMD Ad-Hoc Public Ownership Analysis Committee, and direct staff to send a letter to community groups soliciting their interest in participation on the committee.

BACKGROUND INFORMATION: Proposed Committee Charge -- Attached as Exhibit 15-A is a draft charge to the Ad-Hoc Public Ownership Analysis Committee (POAC) that proposes a 9 member committee consisting of 7 community members and 2 additional representatives, one each from Cal-Am and WaterPlus. Each of the 7 directors will appoint one community member to participate on the committee. These representatives must reside within the District boundaries and represent a community group.

The charge specifies that the committee would meet for 6 months, between November 2011 and April 2012, and during that time develop a report for review by the Board in May 2012. The charge states that the committee will utilize as a reference, but not be limited to the July 7, 2011 Water Plus Proposal for acquisition of Cal-Am and the report prepared by Beacon Valuation Group, LLC on the water company’s fair market value. In addition all meetings of this committee shall be noticed and open to the public in compliance with the Brown Act.

Develop List of Organizations -- The District maintains a list of community groups which Directors could use as a resource for selecting appointees to the committee. However, the Board could update that list in order to identify organizations interested in serving on the POAC with its unique charge. Attached as Exhibit 15-B is a list of community groups, and attached as Exhibit 15-C is a draft letter that could be mailed to these groups asking if they would like to serve on the POAC. An attachment to that letter would be Exhibit 15-D, a questionnaire that should be returned to the District. These letters could be mailed by August 26, 2011 and responses returned by September 26, 2011. The list of organizations willing to participate on the committee would be forwarded to the Directors, their selections could be made and presented for approval at the October 17, 2011 Board meeting. The first meeting could occur in November 2011.

Alternatives for Committee Membership – The proposed charge suggests a 9 member committee with no participation by directors. Option B -- Another alternative could be to establish a 9 member committee consisting of 2 directors, and 5 community members appointed by the directors that are not seated on the committee. Representatives from Cal-Am and WaterPlus would be included. Option C – A 16 member committee could also be established consisting of 14 members (2 appointees from each director) and also the Cal-Am and WaterPlus representatives. Option D – The Board may desire to modify the suggested committee options, or develop another plan.

IMPACT TO STAFF/RESOURCES: No additional expenditures are anticipated to be associated with conduct of the POAC meetings. Committee meetings could be conducted in the District’s conference room. Staff time for the General Manager, Executive Assistant and other personnel as needed will be required to support the work of the committee. If the committee chose to contract for the services of a consultant to provide a focused analysis, the request would come to the Board for authorization.

EXHIBITS

15-A Draft Charge to the MPWMD Ad Hoc Public Ownership Analysis Committee

15-B List of Community Groups

15-C Draft Letter to Community Groups Soliciting Interest in Participation on the POAC

15-D Questionnaire to Community Groups

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