Proprietor’s note: Tom Moore, an exceptionally well qualified member of the Marina Coast Water District‘s board, posted the following as a response to a previous Partisan post regarding the wisdom of private v. public ownership, a subject of current interest because of a looming effort to put privately owned Cal Am water under public ownership. As it stands, the group Public Water Now is expected to sponsor a ballot measure that would require a public buyout of the water utility and put it under the management of the Monterey Peninsula Water Management District, which is governed by a board of elected officials. Moore did not intend this to be a standalone commentary, but it deserves more attention than it would have received otherwise.
Point 1: The vast majority of public sector organizations, for-profit organizations and non-profit organizations provide significant benefits for their clients and society, at a cost that is as reasonable as their physical, legal and market circumstances allow.
Point 2: If you insist on clinging to the myth that all government organizations are inefficient, inept and run by lazy, overpaid bureaucrats then:
a. You must notify your local fire and police departments, along with the county 911 Center that they must NEVER respond to a phone call or alarm from your home. You must also never accept medical treatment under any circumstances from Salinas Valley Memorial Hospital. To do otherwise makes you a hypocrite.
b. If you really insist on dueling over the issue, then: AIG, ENRON (“Smartest Guys in the Room”), Bernie Madoff, Wells Fargo Bank, IndyMac Bank, Washington Mutual Bank, Bethlehem Steel, White Star Lines (owners of the Titanic), Pan Am, Eastern Airlines, Drexel Burnham Lambert, Bank of Credit and Commerce International, Union Carbide (Bhopal killings), PG&E (recent San Bruno killings), Three Mile Island, Exxon Valdez. How many trillions of dollars were wasted and innocent people injured or killed by these “efficient” private companies?
Point 3: How much do you think Cal Am would charge its customers if it was not regulated by the CPUC and instead all its water rates were set at the sole discretion of the Cal Am Board of Directors?
Point 4: The CPUC regulatory process is arcane, complex, difficult, time consuming and, above all, expensive for everyone involved. Hundreds of thousands of dollars and years can be spent on a given Cal Am rate setting process. The CPUC exists only so that a private company can be in a line of business that must, of necessity, be a monopoly (such as a utility).
Point 5: Marina Coast Water District is a government organization. Its Board of Directors consists of five locally elected citizens who are paid all of $50 per month. This Board meets one to two times a month. All meetings are held locally, not in San Francisco or New Jersey. The public is even welcome to attend these meetings. (Just try to get into a Board meeting at Cal Am, if you can even find out where and when they are meeting….).
Point 6: Marina Coast is beholden ONLY to its customers and the local voters. There are no shareholders to keep happy and no stock price to worry about. By law Marina Coast rates contain no profit and MUST be reasonably related to the actual cost of providing water and wastewater services. When a new rate plan is developed, it is put together for the next 3-5 years. It takes only about four months to develop and approve such a rate plan. The cost of a new rate plan is less than $50,000, including consultants and staff time. And all Board deliberations on new rate plans are done locally and open to the public. The public even gets to weigh in on new rate plans via the Proposition 218 process. So who is the inefficient bureaucracy here: the government owned utility or the privately owned monopoly?
Point 7: Points 5 and 6 can be repeated (with a couple of slight adjustments) for the Monterey Regional Water Pollution Control Agency (MRWPCA). Note: with the cooperation and assistance of the Marina Coast Water District, the MRWPCA will soon be bringing the Cal Am service area 3,500 acre-feet per year of new water. This is the largest amount of new water for the Cal Am service area that has been developed in the past 22 years. And guess what? The MRWPCA is a government owned utility.