Cal Am backs lawsuit over Measure J language.

Another public water initiative, another lawsuit. 

California American Water is behind a lawsuit filed Aug. 20 in Monterey County Superior Court against the Monterey County Elections Department, alleging the department erred in its decision that the full text of Measure J—a ballot initiative brought by activist group Public Water Now—should be included in the official Voter Information Guide, and also alleges its title is "false and misleading." 

Richard Heuer III, the plaintiff, brought a similar lawsuit in 2014 regarding Measure O, which would have compelled the Monterey Peninsula Water Management District to initiate a public buyout of Cal Am's local water system, if feasible. 

Heuer and Cal Am largely prevailed in that lawsuit, and the court agreed that its title, "Monterey Peninsula Water System Local Ownership and Cost Saving Initiative," was misleading—specifically that whether or not there would be cost savings to ratepayers was unknown—and the title was thrown out. 

Measure J is similar to Measure O, and has the exact same original title: "Monterey Peninsula Water System Local Ownership and Cost Saving Initiative."

"There's no proof of it saving any money," Heuer says. 

The lawsuit also states that "the only thing that Measure J actually guarantees is an expenditure of an unknown and unlimited amount of money on an undefined 'plan' that may or may not result in any tangible benefit."

While the cost of a public buyout of Cal Am's local system remains unknown, the feasibility study of a buyout that would be required if Measure J passes is estimated to cost between $400,000 to $700,000, MPWMD General Manager Dave Stoldt says.

The text of Measure J, among other things, lays out "findings" that include a history of Cal Am's failed attempts to secure a new water supply. "Cal Am has seriously mismanaged the Peninsula's water system ever since acquiring it [in 1966]," the measure states.

The lawsuit alleges that only the language of the proposed ordinance itself should be allowed in the Voter Information Guide. 

George Riley, co-founder of Public Water Now, says, "We wrote it with the expectation we'd be challenged, so we’re fully prepared to defend every statement we made."

"We’re completely convinced that the public is far more supportive of giving the facts, and Cal Am is more worried they’re on the losing side of the argument," he adds. "This argument is expected."

Two law firms, Salinas-based Anthony Lombardo & Associates and Los Angeles-based Reed & Davidson, are representing Heuer, who says the legal fees are being bankrolled by the Measure J opposition committee—named "Stop the Costly Water Boondoggle"—which is sponsored by Cal Am. 

An initial hearing for the case was held Aug. 22 and the next hearing is set for Aug. 29 in Monterey County Superior Court's Salinas courthouse.