Monterey Peninsula water district asks court to allow takeover of Cal Am
Monterey Peninsula water officials last week filed a complaint with Monterey County Superior Court seeking a ruling that will greenlight the district’s plans to takeover California American Water Co.’s Peninsula operations. The lawsuit is asking the court to rule that the Monterey Peninsula Water Management District has the authority to forcibly takeover Cal Am’s Monterey main system. Called eminent domain, it is the right of a government to seize private property for public use, with payment of compensation. In April, the water district made a $448 million offer to Cal Am for its Monterey water system. Cal Am turned it down. On Oct. 10 the water district held a hearing where it took in evidence and testimony before ruling unanimously on a “resolution of necessity,” the first step in an eminent domain proceeding. Despite that, Cal Am is not flinching.