Frequently Asked Questions

What is Measure W?
Measure W allows the Monterey Peninsula Water Management District to study public ownership of Cal-Am’s private water distribution system. In addition, the Water Management District will study the cost and the process for the public to acquire that system.

Measure W asks:

"Shall the Monterey Peninsula Water Management District be directed to investigate the cost and process to publicly acquire the private water utility system presently owned and operated by the Monterey District of California American Water (Cal-Am), and be directed to recover up to $550,000 for costs of the investigation as a surcharge upon water bills of Cal-Am customers?"

Why is this study necessary?
Cal-Am is proposing to increase water rates 300% by 2010 and continues to treat the Monterey Peninsula as its special cash cow.

The company continues to overdraft the Carmel River and the Seaside Basin and has a reputation of poor service and poor customer relations. Monterey Peninsula residents are conserving as a remarkable rate, yet Cal-Am can't meet its own standards for water conservation.

Local business owners are seriously concerned that high water rates will hurt local businesses and force new businesses to look elsewhere.

We deserve better. The only way to get the facts, and look at an alternative, is to vote YES on Measure W.

What is Cal-Am?
Cal-Am is the private company that owns the water supply system on the Monterey Peninsula. Cal-Am is owned by the multinational RWE, the largest private water corporation in the world and the largest in the United States. Locally, Cal-Am is regulated by the Monterey Peninsula Water Management District (MPWMD), a public agency run by local elected officials. Cal-Am's water rates are among the highest in California. Cal-Am is proposing significant rate hikes that would double our water bills over the next three years, and triple them in five years.

What will Measure W cost me?
The measure would average a one time cost of an average of $14 per Cal-Am connection. If you are not a Cal-Am customer, you would not pay anything.

Who supports Measure W?
Measure W has broad support from business professionals, homeowners, landlords, tenants, environmentalists, and citizens fed up with Cal-Am’s high rates and poor business practices. 85% of the United States gets its water from public systems, not private companies like Cal-Am.

Which public agency would run the distribution system if Cal-Am is bought out?
No specific agency has been designated as the owner of the system following public acquisition. Measure W’s investigation will discuss various public ownership options for public consideration. There is no guarantee it would be any particular agency.

How much will it cost to buy the Cal-Am system?
Unknown at this point. Measure W will fund a study to determine the value of Cal-Am and the cost of a buy- out. The use of low-interest government bonds is one option for financing a public takeover of the water system. With information from the study, the community will have the facts to make an informed decision on whether to buy the water system. A decision to buy the system would have to be approved by the voters in a future election.

Has this been done before in California?
Voters in Felton (north of Santa Cruz) approved bond Measure W by 75% on July 26 to finance a public takeover of the Cal-Am system in their area. Montara (San Mateo County) bought its Cal-Am system in Fall 2004. Several other communities around the country have formed groups to investigate taking control of poorly maintained privately run water systems.

Who gets to vote?
All voters who reside in the Monterey Peninsula Water Management District are eligible to vote. You can view maps of the district divisions here. This includes residents of Seaside, Sand City, Del Rey Oaks, Monterey, Pacific Grove, Pebble Beach, Carmel, Carmel Valley and Carmel Highlands, as well as some adjacent unincorporated areas.

When is the vote?
The vote is set for Tuesday, November 8. The last day to register to vote is Monday, October 24. Absentee ballots will be mailed beginning October 8. We urge everyone receiving an absentee ballot to return it promptly. There will also be polling places on Election Day.