A complicated battle breaks out over a single item in Marina Coast Water District’s budget.

On the surface, the dispute is about a $470,000 line item and a proposed 9-percent rate increase in Marina Coast Water District’s proposed budget. But just below, it’s a convoluted conflict about power, representation and MCWD’s desalination plans.

All of these issues came to a head at the Sept. 11 Fort Ord Reuse Authority board meeting, where a heated two-hour discussion about MCWD’s budget raised more questions than it answered.

The dispute began at the June 12 FORA meeting, where the board objected to the $470,000 item because it was earmarked for desalination planning. Several FORA board members are opposed to the location of MCWD’s desal proposal, which is sited right next to Cal Am’s slant wells in Marina. Instead, the board asked that MCWD focus on other water supply projects like conservation and recycling.

Here’s where things get complicated: FORA’s agreement with MCWD to provide water for Fort Ord dates back to 1998, and includes a provision that removes the FORA board from the process of resolving budget disputes.

A series of letters were exchanged over the summer between MCWD and FORA Executive Officer Michael Houlemard to resolve the dispute, but by the time of the Sept. 11 meeting, questions remained: Was it legal to remove the board from the process?

Throughout the meeting, FORA Counsel Jon Giffen maintained the process is completely legal. But several board members, including county Supervisor Jane Parker, remained unconvinced.

“How many years have you been working with public agencies?” Parker asked. “It is not an action of the entity until the board takes action.”

Whether any of the money would be spent on desal planning was unclear, but MCWD General Manager Keith Van Der Maaten clarified later.

“FORA staff and MCWD staff resolved to move forward by using the $470K on an in-depth study of recycled water, conservation, desalinated water and other water augmentation sources,” he writes.

The board voted 6-4 to approve the proposed dispute resolution, with three members absent. A second vote in October is necessary to pass it.

Meanwhile, ratepayers in the Ord Community worry about rates going up to pay for MCWD’s desal plans and the litigation it’s created. Paula Pelot, president of the Preston Park Tenants Association, says she pays only $5 a month for water, but pays $60 per month in other charges. Residents at University Villages pay an additional $25 per month due to past deals FORA struck with developers.