ITEM:		DISCUSSION ITEM
16.	TIMELINE ON FUTURE DECISION POINTS - FEASIBILITY OF PUBLIC OWNERSHIP OF CALIFORNIA AMERICAN WATER MONTEREY WATER SYSTEM
Meeting Date:			January 25, 2021	Budgeted:
From:			David J. Stoldt,	Program/
			General Manager	Line Item No.:
Prepared By:			David J. Stoldt	Cost Estimate:
General Counsel Approval: N/A
Committee Recommendation: None
CEQA Compliance: This action does not constitute a project as defined by the California Environmental Quality Act Guidelines Section 15378.

SUMMARY: At a November 12, 2019 public workshop the financial feasibility study of the potential acquisition of the Cal-Am Monterey Water System was presented. Based on the valuation determined at that time by the District’s financial consultant, the principle conclusion was that under public ownership the cost of service or the cost of operating the system would be less, hence an acquisition is financially feasible.

At its November 18, 2019 meeting, the Board considered and approved authorizing additional consulting and legal work that would be required to support a future potential Resolution of Necessity, which would initiate an acquisition, as well as bolster the District’s position at a bench trial, should it elect to proceed. The tasks approved included:

•More detailed operations plan(s)

•CEQA compliance (for LAFCO and acquisition)

•LAFCO process and application

•Formal appraisal

•Findings in support of public necessity

These activities occurred during 2020 and are nearing completion.

At the Board meeting, the District General Manager will present a timeline for completion of the tasks, Board actions required, and opportunities for public discussion.

EXHIBIT

None

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