What is your view on the public buyout of Cal Am?

I support the public buyout of Cal Am for several reasons:

1. Conflict of interest: There's an inherent tension between the interests of shareholders and ratepayers in privately-owned public utilities. Shareholders typically want to maximize profits, while ratepayers want affordable, reliable service. This conflict can lead to higher rates and potentially compromised service quality.

2. Local control: Public ownership would give the community more direct control over its water supply and infrastructure decisions. This could lead to policies that better reflect local needs and priorities.

3. Reinvestment of profits: Under public ownership, any surplus funds could be reinvested into the water system or used to keep rates lower, rather than being distributed as profits to shareholders.

4. Long-term perspective: Public entities may be more likely to prioritize long-term sustainability and conservation efforts over short-term financial gains.

5. Transparency: Public ownership often comes with increased transparency and accountability, as decisions would be subject to public scrutiny and open meeting laws. For example, there are no publicly available financials for Cal Am and the SEC filings for American Water don’t give much information, other than regulatory notes, about the circumstances of the business unit in California or Monterey.    

6. Resource value: Water is a critical and increasingly scarce resource. Public ownership ensures that this valuable asset remains in the hands of the community it serves.

7. Coordination with other public services: Public ownership could facilitate better coordination with other municipal services like wastewater treatment, environmental protection, and urban planning.

I fully understand that the buyout will lead to a short- and medium-term expense of acquiring the utility and scaling a public agency to operate the water system. Perhaps with more transparency into CalAm’s operating expenses, we could do a more in-depth cost-benefit analysis. Regardless, I think these short-term challenges are worth the investment in for the Monterey Peninsula, and will allow us to address the long-term interests of the region and its residents.