The announcement is only the latest step in a years-long effort to purchase the private water company, a prospect that is still uncertain and will likely play out for years to come.
The battle began four years ago with ballot Measure J, which passed with 56% of the vote. The measure directed the Monterey Peninsula Water Management District (MPWMD) to create a plan to acquire all of California American Water’s local water assets.
“This was not a discretionary act of our district,” said MPWMD General Manager Dave Stoldt. “We're just following through on what the voters basically forced us to do.”
Josh Stratton, a spokesperson for California American Water, considers tonight's meeting premature.
“I don't know where they're going to get this figure that they're coming up with, because they haven't done a bona fide appraisal of our company,” he said.
He also says the company is not for sale.
“We don't really understand why they're doing it at this point," he said. "The water management district has yet to show that they even are qualified to run a water utility."
But Stoldt argues the district is well-managed and would most likely hire people from California American Water. He says tonight's meeting is important for several reasons.
“It's a real chance for members of the public to get a sense of how the number was arrived at,” Stoldt said. “And better understand a little bit of what some of the differences of opinion will be.”
Cal Am is expected to either ignore or reject the proposal, which could lead to a long battle in court.
The meeting takes place Monday, April 3, at 5:30, at Monterey City Hall.
Cal Am is one of KAZU's many business supporters.