ITEM:		ACTION ITEM
16.	CONSIDER ACTION TO BE TAKEN WITH RESPECT TO PUBLIC WATER NOW INITIATIVE PETITION
Meeting Date:			May 21, 2018	Budgeted:	N/A
From:			David J. Stoldt,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			David J. Stoldt	Cost Estimate:	N/A
General Counsel Review: Yes
CEQA Compliance: This action does not constitute a project as defined by the California Environmental Quality Act Guidelines Section 15378.

SUMMARY: By Certificate to Initiate dated April 27, 2018, (Exhibit 16-A) the Monterey County Registrar of Voters verified a sufficient number of signatures on Public Water Now’s petition for the “Monterey Peninsula Water System Local Ownership and Cost Savings Initiative” delivered to the Registrar on April 2, 2018. The Registrar determined that of the 11,557 signatures gathered, 8,409 were projected to be valid, which exceeds the 6,059 signatures required to qualify the petition.

The Water Management District’s Elections Official will certify the results of the Registrar’s examination of the initiative petition at the May 21, 2018 Board meeting. The Board will then consider taking action as described below, and as outlined in Exhibit 16-D.

RECOMMENDATION: Pursuant to California Elections Code § 9310, the District Board of Directors has the following options:

1. Adopt the ordinance, without alteration, either at the regular meeting at which the certification of the petition is presented, or within 10 days after it is presented; or

2. Adopt Resolution 2018-08 (Exhibit 16-B) to immediately order that the ordinance be submitted to the voters, without alteration, pursuant to subdivision (a) of Section 1405.

3. If the Board adopts Resolution 2018-08, it should also take action as follows:

a. Determine whether it intends to develop an argument in favor or in opposition to the initiative.

b. Either set a special meeting to review and adopt the arguments for or against the measure; or appoint a subcommittee to review and adopt the arguments.

c. Adopt a timeline for the review and submittal of arguments as shown on Exhibit 16-E.

DISCUSSION: On October 5, 2017, Monterey County Elections advised the District that Public Water Now submitted to the Registrar a Notice of Intent to Circulate an Initiative Petition and Proof of Publication of the Notice (Exhibit 16-C).

The stated purpose of the Initiative Petition is to establish a policy to acquire, if economically feasible, the water system assets of the California-American Water Company (Cal-Am) within the District’s territory, either through negotiation or through the exercise of eminent domain power. The stated reasons for the action are to “ensure the long-term sustainability, adequacy, reliability, cost-effectiveness and quality of water service within the Monterey Peninsula Water Management District area, to lower the cost of service to ratepayers, to promote and practice sustainable water management measures, and to establish public ownership of water system assets by establishing regulations requiring the District to take affirmative action, to the extent financially feasible, to acquire the water system assets owned and operated by California American Water Company that currently provide water service to the District and its ratepayers.”

The Initiative Petition contains a proposed Ordinance that adds Rule 19.8 to the District Rules and Regulations and requires the General Manager, within nine months of Rule’s effective date, to complete a written plan for the acquisition, ownership, and management by the District of all water facilities and services within and outside the District, including water purchase agreements as appropriate.. If the Plan concludes acquisition is feasible, the District shall, as soon as practicable, take all necessary and proper actions consistent with its powers under District Law and Eminent Domain Law to acquire Cal-Am’s water system assets.

The Initiative Petition requests the Ordinance be submitted to the voters “at the earliest regular or special election for which it qualifies pursuant to Section 1405 of California Elections Code.”

Elections Code, Division 9, Chapter 4, District Elections, pertains to handling of the Initiative Petition. Public Water Now circulated the petition and the Registrar determined that 11,557 signatures were gathered. The number of signatures required for the petition is based upon the number of voters in the District as of the last report of registration, which is 60,586. Pursuant to Election Code 9310, 10% of that number is required to qualify the petition, which is 6,059 signatures. The Registrar of Voters conducted a random sampling of 500 signatures and found that 408 were deemed valid, which projects that 8,409 of the signatures are valid. That equates to 139% of the number of signatures needed to qualify the petition.

As the initiative has been signed by voters not less in number than 10 percent of the registered voters in the District, where the total number of registered voters is less than 500,000, California Elections Code § 9310 applies. Pursuant to § 9310, the Board of Directors has the following options:

1. Adopt the ordinance, without alteration, either at the regular meeting at which the certification of the petition is presented, or within 10 days after it is presented; or

2. Adopt a resolution to immediately order that the ordinance be submitted to the voters, without alteration, pursuant to subdivision (a) of Section 1405.

The next state general election is set for November 6, 2018. Pursuant to section 1405, the election on the measure may be consolidated with the state regular or special election. Should the Board decide to submit the ordinance to the voters, the election for a district initiative will be consolidated with the November 6, 2018 state primary.

The attached Resolution No. 2018-08 would implement Option 2, above, to direct the Monterey County Elections Department to conduct the election to approve or reject the Measure set forth in the “Monterey Peninsula Water System Local Ownership and Cost Saving Initiative,” on the November 6, 2018 ballot; and consolidate that election with any and all elections also called to be held on November 6, 2018. The resolution also requests the Monterey County Board of Supervisors to order such consolidation under Elections Code Section 10401 and 10403; and requests the Board of Supervisors to permit the Monterey County Elections Department to provide any and all services necessary for conducting the election and agrees to pay for those services.

Exhibit 16-D is a memorandum from District General Counsel clarifying the Board’s next steps should the Board set the measure for election, which include decisions the Board must make regarding preparation of the impartial analysis and receipt of written arguments for or against the ballot measure (Exhibit 16-E).

EXHIBITS

16-A April 27, 2018 Certificate of Initiative from Monterey County Registrar

16-B Draft Resolution No. 2018-08, Ordering an Election, Requesting County Registrar to Conduct the Election, and Requesting Consolidation of the Election

16-C October 5, 2017 Email from Monterey County Elections transmitting Public Water Now Notice of Intent to Circulate an Initiative Petition

16-D May 2, 2018 Memorandum from David Laredo, District General Counsel

16-E Proposed Schedule for Review and Submittal of Arguments

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