ITEM:		DISCUSSION ITEM
12.	STATUS REPORT ON ACQUISITION OF MONTEREY WATER SYSTEM
Meeting Date:			August 18, 2025	Budgeted:	N/A
From:			David J. Stoldt,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			David J. Stoldt	Cost Estimate:	N/A
General Counsel Review: N/A
Committee Recommendation: N/A
CEQA Compliance: This action does not constitute a project as defined by the California Environmental Quality Act Guidelines Section 15378.

SUMMARY: While much progress has been made on the public acquisition of the Monterey Water System, it appears that the single factor controlling the schedule is a Supreme Court review of an Appellate decision in the eminent domain proceeding in Apple Valley. In that instance, in October 2021 the San Bernardino Superior Court ruled the City of Apple Valley would not be allowed to takeover the private water system owned by Liberty Utilities. The City appealed and won a favorable ruling in January 2025. The appeal allowed for standards of review and standards of evidence that Liberty Utilities felt were in conflict with an earlier 2023 Third District Appeals Court ruling related to South San Joaquin Irrigation District’s proposed takeover of PG&E assets.

It is unlikely a Monterey Superior Court bench trial would be undertaken until the Supreme Court clarifies the standards of review and evidence. A Supreme Court decision is unlikely until early 2027 and could be later.

Recent and future activities related to the public acquisition of the Monterey water system is attached as Exhibit 12-A.

EXHIBITS

12-A Timeline of Recent and Future Activities

U:\staff\Boardpacket\2025\081825\Discussion Item\12\Item-12.docx