Cooke Agenda Dec. Opinion Granting California-American Water Company a CPCN to Provide Wastewater Service; Authorizing Acquisition of Wastewater Assets; and Adopting Rates

5. County Process

In 2001, the Monterey County Public Works Department issued a "Request for Statement of Qualifications and Submittal of Proposal" (Request) for the purchase of the three districts described above. Cal-Am was one of several bidders to respond to the Request, and the application includes a copy of Cal-Am's response (Tab C). The County held public meetings to identify alternative approaches to County ownership of the districts, and the costs associated with each option. On April 2, 2002, the County Board of Supervisors voted to approve the sale of all three wastewater districts to Cal-Am. The agreed upon purchase price for all three districts is $901,801,¹ which the purchase agreements describe as the "projected outstanding debt" of the Las Palmas Ranch and the Carmel Valley County Sanitation District wastewater systems.²

¹ Cal-Am originally bid $686,001 for the three districts. ² The purchase agreements contain an adjustment clause that will decrease the price paid by Cal-Am in the event the actual debt is less than the projected debt.