February  2012

NEWS & HAPPENINGS

Coalition of Peninsula Businesses

By Consultant Bob McKenzie
 

The MCHA-sponsored Coalition of Peninsula Businesses has been busy over the last six months putting together factual materials regarding the Peninsula’s water crisis. Coalition members have been interviewing key players on water issues, investigating water supply options, and preparing to move forward on a water supply project (or projects) to replace the water we will lose December 21, 2016, the date the state’s Cease and Desist Order takes effect.  Coalition members include Monterey County Hospitality Association, Monterey Commercial Property Owners Association, Community Hospital of the Monterey Peninsula, Monterey County Association of Realtors and the Chambers of Commerce of the Monterey Peninsula, Pacific Grove and Carmel.  In 2012, the Coalition will be expanding its memberships to include other organizations and private businesses.  The Coalition will be discussing this topic and other key items at their February 2012 retreat.

The Coalition’s goal is to resolve the Peninsula water challenge to comply with the CDO at a reasonable cost and it intends to accomplish that goal by continuing to educate the community about the impacts of the CDO on Peninsula businesses, residents and local government.  The Coalition also continues to work closely with key parties in an effort to specify a long-term “water” solution that will offset the ordered water cutbacks, ensuring that the cost of water is controlled and at a reasonable price for all rate payers.

With the recent announcement that Cal Am is withdrawing its support of the party’s agreements which formed the basis for the Regional Water Project/Regional Desal Project (RDP) the work of the Coalition is all that more important.  Several years have now been lost in the race to establish an alternative source of replacement water.  We must unite now as a community to get the water we need to survive.

One key fact has been lost as the community examined and debated options and alternatives to the RDP: the Cease and Desist Order is law and leaves the Peninsula with only a fraction of the water it now uses after December 31, 2016, a disastrous future for all of us if this occurs. 

Residents will be guaranteed 35 gallons per person per day (as compared with the approximately 60 gallons per person per day now used – already the lowest use in the state).  That leaves between 15% to 39% of the water currently used for all other uses – hotels, restaurants, schools, local governments, parks, the military, grocery stores, beauty parlors – everything! 

Everyone in our communities has done a great job of conserving our water use – but no one can survive the cutbacks ordered by the CDO.  The Coalition will remain in the forefront of developing a sustainable water supply to save businesses, the local economy and our community.  We will continue to work closely with elected officials, Cal-Am, Monterey Peninsula Water Management District and other parties to determine the right solution. 

To date, we have been successful working with Cal-Am and Monterey Peninsula Water Management District on a new rate design that will be proposed to the CPUC in March.  The commercial 3-tiered system utilizing allocations of water is no longer being proposed.  The new rate design is simple in structure, taking into account “best management practices”.  The basis is simple, commercial will no longer be penalized based on the volume of water used.  Additional details will be presented in the near future.