Monterey County vs. Cal-Am: Monterey County Code Chapter 10.72 and Section 10.72.030B

ABSTRACT: On 26 June 2012, the Monterey County Board of Supervisors authorized County Counsel Charles McKee “to initiate litigation against Cal Am seeking declaratory relief on the county's desal ordinance” in response to a 21 June 2012 letter from attorney Robert R. Moore, Allen Matkins Leek Gamble Mallory & Natsis LLP Attorneys at Law, representing California-American Water Company ("CAW"), Re: Monterey County Code Chapter 10.72 and Section 10.72.030B. The letter states, in part, “CAW asserts that Monterey County Code Chapter 10.72 and Section 10.72.030B are invalid as applied to CAW. CAW is a CPUC-regulated water utility and a public water system that is regulated by the California Department of Public Health. As such, Chapter 10.72 is not enforceable against CAW.” Moreover, “Because CAW is a privately owned public water system regulated by the CPUC, Chapter 10.72 is not enforceable with respect to CAW because it is expressly preempted by Article XII, Section 8 of the California Constitution. The State has fully occupied the field of regulation of privately owned water utilities. The California Constitution provides for the creation of the CPUC and confers jurisdiction over water corporations to the CPUC.” The letter is embedded.

CAW Ltr to CJM Threatening Lit 6-21-12 OCR Document

Allen Matkins 21 June 2012 Letter to County Counsel Charles McKee
Re: Monterey County Code Chapter 10.72 and Section 10.72.030B

REFERENCE: Monterey County seeks court ruling on desal ownership ordinance, JIM JOHNSON Herald Staff Writer, 06/26/2012

ADDENDUM:
MONTEREY COUNTY CODE

Chapter 10.72 - DESALINIZATION TREATMENT FACILITY

10.72.030 - Operation permit process.
All applicants for an operation permit as required by Section 10.72.010 shall:

B. Provide assurances that each facility will be owned and operated by a public entity.