Huntington Beach Council-member Erik Peterson confirmed to the Surf City Voice by email this morning that Michael Hoskinson, his representative on the Planning Commission for the past two years, has resigned and will be replaced at tonight’s city council meeting.
Rumors of Hoskinson’s resignation have circulated since December 13 when he announced that he would not attend a Planning Commission meeting scheduled that night.
A public forum held by Garden Grove mayor Bao Nguyen last night at the city’s community center examined the cost of and alternatives to a proposed $1 billion ocean desalination plant promoted by the Orange County Water District.
Those issues–and the panel of local experts who discussed them last night–have been all but ignored by most of the OCWD Board of Directors, some of whom have strong financial and political ties to Poseidon Resources Inc., the company that would build the plant, and its big-business allies.
The OCWD maintains the county’s groundwater basin, which holds 66 million acre-feet of water and provides about 70 percent of the water used in central and northern Orange County, serving 2.3 million people.
For the past 18 months a clique of four board members, Cathy Green, Shawn Dewane, Stephen Sheldon, and Denis Bilodeau, joined last January by Garden Grove Councilmember Dina Nguyen, have steered the District straight toward a long-term contract with Poseidon.
OCWD staff presented a proposed term sheet (pre-contract) to the board on May 14.
The board approved the term-sheet 7 -3. Nugyen voted for it.
Nguyen, who was the beneficiary of $11,000 in “independent expenditures” by a Poseidon related PAC in her recent election to the OCWD board, was invited to participate in the forum but was a no-show.
Staff is now negotiating a contract with Poseidon that would lock the district into buying 56,000 acre-feet of desalinated ocean water per year, regardless of need, for the next half-century.
Poseidon’s water would cost about $2,000 an acre-foot out the door, more than 3 times what OCWD currently pays for the untreated water it imports from the Metropolitan Water District of Southern California (MET) to help maintain the county’s groundwater basin supply.
Poseidon and its allies on the OCWD board claim that its more expensive water would be a “reliability premium” akin to car insurance that would add to the county’s water supply portfolio and guarantee water during a drought.
But, in order to be financially viable, Poseidon is demanding hundreds of millions of dollars in ratepayer-backed subsidies for the first 15 years of the contract. In return, MET rules require that Poseidon’s 56,000 acre-feet of desalinated water replace an equal amount of (cheaper) imported water, which would then be made available to water agencies outside of OCWD’s service area.
There would be no net gain in water supply for the district, which would be paying three times as much for Poseidon’s replacement water while subsidizing the cheaper imported water for other agencies. And the county wouldn’t receive more water during a drought.
This reporter has repeatedly asked Poseidon officials and OCWD directors to explain the benefit to ratepayers of paying three times as much for water than necessary and subsidizing cheaper water for ratepayers outside of Orange County, but to so far mum’s the word.
For the first 15 years, the proposed pricing scheme would pay Poseidon a surcharge of up to 20 percent on imported MET water (at the higher MWD treated rate) on top of a 3 percent annual compounded surcharge that recurs for the life of the contract, underlying subsequently declining variable surcharge rates.
A Surf City Voice review of the proposed pricing scheme shows that after 15 years ratepayers would pay up to $2,700 per acre-foot for Poseidon’s water (assuming the required $56,000 af) versus about $1,048 per acre-foot for untreated MET water, which comes out to about $1.8 billion versus about $700 million in total for that period.
That’s about $1.1 billion dollars that could be used for the cheaper and more efficient water supply alternatives ignored by OCWD and Poseidon but examined by the forum panel of experts.
Panel members are former Huntington Beach mayor Debbie Cook, Irvine Ranch Water District’s Peer Swan, Coastkeeper’s Ray Hiemstra, and Garden Grove water officials. Members of the public, including Westminster City Councilmember Diana Carey, also spoke.
The complaint alleges that Sheldon appears to be using his business relationship with consultant Roger Faubel, owner of Faubel Public Affairs, to shield his financial links to Poseidon Resources, the company that wants to build a $1 billion ocean desalination plant in Huntington Beach.
The OCWD manages the groundwater in the Santa Ana River basin used by 19 cities and water agencies, referred to as producers, in central and north Orange County.
If the plant is built, Poseidon wants to sell the OCWD 56,000 acre feet of desalinated drinking water yearly for 30 years as a replacement for imported water the District currently buys from the Municipal Water District of Orange County at about a third of the cost of Poseidon’s water.
The OCWD is currently considering various options for doing business with Poseidon, including full financing of the desalination plant.
Sheldon’s potential legal problem is that public officials are prohibited by California’s Political Reform Act from influencing legislation or policy decisions that affect their own financial interests or the financial interests of employers they worked for in the preceding year.
It’s election time. So, in September, Poseidon Resources released another push poll that shows widespread public support for a $1 billion ocean desalination plant that it hopes to build in southeast Huntington Beach.
The poll, commissioned by Poseidon and conducted by Probolsky Research, is based on telephone interviews with 325 “likely voters, whatever that means, residing within the boundaries of the Orange County Water District (OCWD), which is leaning heavily toward buying all of Poseidon’s water or financing the project, which would transfer all of the risks to OCWD’s ratepayers.
The OCWD, which manages the Santa Ana River groundwater basin, provides about 65 percent of the drinking water for 19 municipal water agencies in central and northern Orange County.
But only one of MWDOC’s members has signed an intent to buy any of Poseidon’s water. In theory, MWDOC could force its other members to participate under its “core” program, but that kind of bullying resulted in a revolt by its south county members once before, so force is an unlikely option.
The OCWD, on the other hand, can simply pass the costs of Poseidon’s desalinated water onto the producers, who pump its groundwater for a fee.
Commentary by Debbie Cook
Special to the Surf City Voice
Ocean desalination in Huntington Beach makes sense…if you don’t really think about it. But thinking about it requires understanding all the consequences of Poseidon Resources’ proposed project.
Take for example the unnamed city staffer who probably thought he was brokering a good deal for residents when he negotiated 3000 acre feet/year of Poseidon’s water for 5 percent below the Metropolitan Water District of Southern California imported rate–a savings of $150,000. The problem is that if Orange County Water District (OCWD) approves partnering with Poseidon, the Replenishment Rate (RA) for all of the water we pump from the aquifer will rise by at least $103/acre foot according to their estimates. Huntington Beach pumps on average 20,000 acre feet per year. That means that rate payers will pay an additional $2 million per year for water to save $150,000.
Thinking about it seems to be the last thing that Poseidon and the water agencies want us to do. OCWD recently reneged on their promise to convene a citizen’s committee. Their Board of Directors along with the redundant Municipal Water District of Orange County (MWDOC) meets in almost anonymity, their agendas often obscuring the real nature of discussions, thus thwarting public participation. They certainly don’t want people really thinking about it.
Huntington Beach’s Mayor Matt Harper similarly impedes anyone, including other elected officials, from thinking through ocean desalination. Within a two week period recently, Harper placed items on the agenda of the obscure West Orange County Water Board (WOCWB) and the City’s Intergovernmental Relations Committee aimed at hastening agreements that were not understood by members or staff.
At the WOCWB, he invited Poseidon’s pipeline consultant (former Huntington Beach City employee Howard Johnson) to present a pipeline lease arrangement sought by Poseidon. Information was not available prior to the meeting. The item was placed on the meeting agenda as an information item rather than an action item. California’s open meeting laws preclude action on information items, but this did not stop Harper. He attempted to garner the votes to move forward on the hiring of consultants and the writing of pipeline lease agreements. Even staff was caught off guard and not prepared to give their own presentation or answer questions. Fortunately the representatives of Westminster, Seal Beach, and Garden Grove were uncomfortable with acting so hastily and the motion failed.
Undaunted by this setback, Harper moved on to the city’s Intergovernmental Relations Committee. He invited a representative from MWDOC to present an item that their board has been pursuing for several years, to re-categorize desalinated water as a “core” service rather than a “choice” service. Few residents are familiar with this issue and even fewer are likely to have given it much thought. If MWDOC is able to move desalination from a choice service to a core service, then Huntington Beach and other North Orange County cities will be forced to subsidize south Orange County water agencies and their plans to build a desalination project to serve south Orange County. That makes about as much sense as Orange County subsidizing San Diego County’s desalination project.
The problem with those of us who have spent time thinking about the devil in Poseidon’s details, is that it turns you into a cynic seeking a semblance of rationality in the situation.
I can come up with only one rational reason for such blatant disregard for the public’s interest and the facts–money. Money turns many self proclaimed fiscal conservatives into corporate welfare campaigners.
A glance at Matt Harper’s recent campaign donors tells the story:
Poseidon Resources, $2,540; Simon Wong Engineering, $249; Geosyntec Consultants, $250; Arcadis, $250; AKM Consulting Engineers, $250; Psomas, $540; Parsons, $250; Nossaman, $189—a total of $4,518 from donors directly or indirectly involved in promoting the ocean desalination business.
Poseidon and their brethren have spent millions to keep you and your elected officials from making sense of their uneconomic and imprudent project. In effect, there will be no thinking allowed on their watch.
Debbie Cook is a former mayor of Huntington Beach and is an advocate for greater transparency in public water management.
Mayor Connie Boardman’s proposed letter to the California Coastal Commission, below, will be before the Huntington Beach City Council on Monday, May 6, 2013. Public comments will be heard at the start of the city council meeting. Her proposed letter is based on findings made previously by Coastal Commission (here). A debate on the pros proposed Poseidon desalination plant can be read (here) and (here).
May 6, 2013
California Coastal Commission
45 Fremont Street, Suite 2000
San Francisco, CA 94105
In 2010, the Huntington Beach City Council approved the Coastal Development Permit No. 10-014, conditionally approving the “Poseidon Seawater Desalination Project”(Poseidon CDP).
The city’s approval of the Poseidon CDP was appealed by several organizations, aswell as Commissioners Wan and Mirkarimi.
I have been authorized by the Huntington Beach City Council to communicate to you that the current Huntington Beach City Council does not support the project as it is currently presented.
We are requesting that the California Coastal Commission deny the Coastal Development Permit for the Poseidon desalination project in Huntington Beach when this issue comes before the Commission.
City of Huntington Beach
Editor’s Note: Opponents of an ocean desalination plant (Nowaterdeal) proposed for Huntington Beach, California, recently launched a major campaign to block the project (here). Poseidon Resources created a response to some of those claims and is circulating it publicly. The Voice republished it here. NoWaterDeal issued the counter rebuttal to Poseidon recently. On Monday, May 6, the Huntington Beach City Council will consider a proposal (here) by Mayor Connie Boardman to recommended to the California Coastal Coastal Commission to deny the Coastal Development Permit for the project when it considers the project this summer.
Recently Poseidon Resources, through their media produced an open letter titled: “Don’t be misled by anti-desalination campaign mailer. Get the facts here.”
This letter makes a futile attempt to dispute the facts surrounding the Poseidon Huntington Beach Seawater Desalination Facility as presented in the No Water Deal With Poseidon mailer and website, which can be seen at www.nowaterdeal.com. Below we directly address the statements in their letter with the real facts regarding the project.
Statement: “Desalinated seawater will replace the need to import water; thus eliminating the imported water costs; however, in their calculation, opponents failed to deduct the avoided cost of imported water. This is an uninformed mistake.”
Fact: Jeff Kightlinger the Executive Director of The Metropolitan Water District (MET), the main water provider for Southern California has stated that the MET will not import less water from the delta or the Colorado River due to the existence of the Poseidon Huntington Beach Desalination Plant (personal communication on 3/18/2013). As another example, Poseidon signed a contract with MET in 2009 that included a section stating that the contract would be terminated if MET is required…to reduce defer, or exchange entitlement to or reduce usage of Colorado River water, State Water Project water, or other supplies…as a result of expected or actual Production of the Desalinated Seawater by the Project(Section 13, pg. 21 of the Draft CSDP Agreement 70025). It is quite clear that any water Poseidon produces will not replace imported water, and Poseidon knows that.
Statement: “If the cost of imported water continues to escalate as it has over the past twenty years, then over the life of the desalination project, Orange County water ratepayers will see a net savings, not a net increase in their water bill.”
Fact: Such claims have been made for at least 12 years and have not come to pass and probably never will. In presentations by Poseidon in 2003, they estimated that the cost of imported water would equal or exceed that of desalinated water in the 2013-14 timeframe. Here it is 2013 and that has not come to pass. On the contrary the proposed price per acre foot for desalinated water for the Huntington Beach project is about $1,700 compared to $400 for our abundant Orange County groundwater, $700 for imported water and $800 for local recycled water. So even over time desalinated water has remained far more expensive than all other supplies and is likely to remain so. Poseidon’s present prediction for the imported = desalinated water cost equation is for 2024-25 timeframe. It is interesting that this water cost equation is always predicted 10 to 12 years out. You be the judge of who’s being factual.
Statement: “Enforceable agreements between Poseidon and the City of Huntington Beach guarantees that Huntington Beach residents will pay less for water then they would without the desalination project.”
Fact: Huntington Beach signed an “Owner’s Participation Agreement” (“OPA”) with Poseidon Resources that includes the discounted purchase of some desalinated water. However, the discount will only apply to the first 3 Million-gallons-per-day (Mg/d) of 10 Mg/d total and to an emergency supply for 10 Mg/d for 7 days. (NOTE: What constitutes an “emergency” remains unstipulated.). So Huntington Beach will pay full price for 70% of the water received from the project
Statement: “A recent negative campaign mailer circulated by opponents erroneously claims the project will add $5 billion dollars to local water bills over the next 30 years.”
Fact: Unlike Poseidon’s often fuzzy math , the No Water Deal With Poseidon mailer states the precise arithmetic it used to come up with the “$5 billion” figure. All the numbers were derived from Poseidon’s own term sheet for the purchase of water produced by its HB project plant. You be the judge of who’s being factual.
By the way, the No Water Deal With Poseidon mailer is not “anti-desalination”. It does, however, provide the facts regarding irresponsible desalination projects like Poseidon Resources has proposed for Huntington Beach.
Editor’s Note: Opponents of an ocean desalination plant (Nowaterdeal) proposed for Huntington Beach, California, recently launched a major campaign to block the project (here). Poseidon Resources created a response to some of those claims and is circulating it publicly. The Voice republishes it below. NoWaterDeal’s counter rebuttal can be read here. On Monday, May 6, the Huntington Beach City Council will consider a proposal (here) by Mayor Connie Boardman to recommended to the California Coastal Coastal Commission to deny the Coastal Development Permit for the project when it considers the project this summer.
Huntington Beach Desalination Project
Fact vs. Fiction
Opponents of seawater desalination are distributing a campaign mailer with misleading and factually incorrect claims about the Huntington Beach Desalination Project and the cost of desalinated water. This fact sheet corrects these erroneous claims.
Claim: “$5 billion dollars will be added to local water bills … These bills could total $8,500 for the average retail water customers over the next 30 years.”
Fact: This claim is factually incorrect. The cost of water from the desalination project is not additive, as the claim assumes. Drinking water produced by the desalination project will replace an equivalent amount of imported water into Orange County and thus eliminate the related imported water costs to the consumer. The claim above fails to take this fact into account. If the avoided imported water costs were taken into account, the $5 billion claim would be reduced by billions, potentially even more than $5 billion, in which case buying the desalinated water would result in savings to the ratepayers of Orange County. If the historical rate of imported water escalation is assumed for the next 30 years, purchasing the desalinated water would indeed result in significant savings1. Additionally, the $5 billion cost claim factors in an arbitrary escalation of desalination water at 3.5% annually and fails to account for available local water supply development financial incentives that will reduce the cost of desalinated water by up to $250 per acre foot or $14 million a year2.
1 6.4% = MWD’s Full Service, Treated Tier 1 Rate’s historical average annual rate of increase during 37 year period from 1978
2 $14 million = $250 per acre foot financial incentive x 56,000 acre feet per year produced by the desalination plant.
3 City of Huntington Beach Entitlement and Plan Amendment 10-001, approved September 2010
4 20 year period from 1993-2012 for CPI-U series identification numbers CUURA421SA0 & CUUSA421SA0 (All Items, Los Angeles-Riverside-Orange County, CA)
5 Average Retail Electric Utility Prices, Industrial, as published by the CA Energy Commission
This claim is also factually incorrect as it pertains to ratepayers living in the City of Huntington Beach. As a condition to the permits3 issued by the City of Huntington Beach to Poseidon’s desalination project, the City, at its option, can receive up to 3,360 acre feet per year of desalinated water at the lower of a 5% discounted price off the rate the City pays the Municipal Water District of Orange County for imported water and the cost of the desalinated water. This means that when the desalination project comes online Huntington Beach residents will be paying less for imported water than they would without the project. This requirement will save the City’s ratepayers tens of millions of dollars over the 30 year term of the project.
Ultimately, the cost impact of integrating desalinated water will differ from city to city based on each city’s water supply mix and rate structure as well as the future escalation of imported water rates. However, the Huntington Beach Desalination Project will provide Orange County with a substantial supply of locally-controlled, drought-proof water. These are attractive characteristics that imported water simply cannot offer, given the current and future water demands, environmental concerns, pumping restrictions and threats on the State Water Project and Colorado River Basin.
Claim: The mailer applies an arbitrary inflation figure of 3.5% per year to the cost of desalinated water.
Fact: Poseidon expects the cost of desalinated water to escalate at 2.5% per year. Approximately half of the cost of desalinated water will cover capital costs and escalate at a fixed 2.5% per year. The remaining balance of the cost covers the operating and electricity costs of the Project. The portion of the desalinated water price that covers operating costs will escalate with the Consumer Price Index (CPI-U) for Orange County, which has averaged 2.4% per year over the last 20 years4. The portion that covers electricity costs will escalate with the applicable SoCal Edison industrial tariff rate, which has averaged 2.2% for the 20 year span from 1991-20105.
Claim: “No public subsidies for private profit”
Fact: Poseidon did not request and is not receiving “public subsidies” as part of the successful financing of its Carlsbad Desalination Project, and the company is not seeking public subsidies for its Huntington Beach Desalination Project. Public water agencies in Orange County that buy desalinated water are eligible for an up-to-$250 per acre foot financial incentive from MWD under its Seawater Desalination Program (SDP). This same financial incentive under MWD’s Local Resource Program (LRP) has been used to financially support the OCWD’s Groundwater Replenishment System (GWR). The LRP is designed to foster the development of local water supplies that initially cost more than imported water supplies, and as such they reduce, not increase, water costs for Orange County consumers. Poseidon is neither a public agency nor an MWD member and is not eligible for the funds. MWD funding is subject to strict accounting and auditing measures, and the incentive funds are only available to the purchasers of water to offset predetermined costs.
Claim: “It’s just too risky … In Australia four of six desalination plants built since 2006 sit idle in stand-by mode.”
Fact: This reference to Australian and its desalination plants is misleading and not analogous to the Huntington Beach project. The regions in Australia where these plants are built experience up to four times the annual precipitation as Southern California and therefore do not need to import water like Orange County. As such, not all the Australian plants were built to operate on a base load capacity. Desalinated water is intended to meet a small portion of Orange County’s supply needs as part of its overall strategy to improve reliability through diversification of water sources. The Huntington Beach project’s maximum 56,000 acre feet per year capacity will be approximately 8% of Orange County’s total demand, so it’s only one component of supply designed to offset the need to import an equivalent amount of water that is subject to regulatory and environmental restrictions, making it less reliable. The Huntington Beach plant and its water reliability agreements will be structured such that the public agency customers will always need and use what the facility produces.
Furthermore, Poseidon alone bears the risk of permitting, development, financing, constructing and operating the Huntington Beach Desalination Project. The innovative public-private partnership structure that Poseidon proposes shields Orange County ratepayers from the risk of a failed financing, over-budget construction, or failure to produce water at the amounts specified in the agreements during operations. In fact, the public agencies purchasing the water would not pay for any water until the Project has been constructed and water has been received by the agencies meeting contractual specifications for quantity, quality, reliability and price.
Claim: Poseidon’s beach-front water factory will suck sea life into their intake pipes with the water, kill and puree millions of organisms, then pump out a briny stew and create a dead zone off Huntington Beach.”
Fact: The Huntington Beach Desalination Project will be located east of Pacific Coast Highway, over a quarter mile from the Pacific Ocean on industrial land behind the AES power plant. The desalination project has a certified Subsequent Environmental Impact Report and approved Coastal Development Permit from the City of Huntington Beach, an approved lease with the California State Lands Commission for use of the seawater intake and discharge facilities and a discharge permit from the Santa Ana Regional Water Quality Control Board. In issuing these permits and approvals each local and state regulatory agency determined that the project can be built and operated with no significant impacts to marine life or water quality.
In issuing its approval the Santa Ana Regional Board found that for the desalination project will impinge approximately 0.78 lbs per day of fish, a fraction (less than 25%) of the daily diet of one brown pelican”6 and the discharge from the desalination plant will meet all federal and state receiving water quality standards.
6 Santa Ana Regional Water Quality Control Board Order No. RB-2012-0007, NPDES No. CA8000403; page F-33
A growing number of county ratepayers, inspired by the late Gus Ayer, and opposed to a plan by Poseidon Resources Inc. to build an ocean desalination plant in Huntington Beach, have a message for the Municipal Water District of Orange County (MWDOC) and its 28 member agencies:
No more secret negotiations or deals with Poseidon and don’t make us pay an additional $5 billion in local water bills—$8,500 per ratepayer—over the next 30 years for water that we don’t need.
Thirty-years is the time period in which the water agencies that contract with Poseidon would be required to pay for Poseidon’s desalinated water, whether it is needed or not, according to the water purchase agreement (WPA) made public by MWDOC in January.
The buyers “will agree to take (on a ‘take if delivered’ basis) [56,000] acre-feet per year of Product Water (the ‘Committed Amount’),” the WPA states. And if the buyers don’t take that amount of water, they will, “nonetheless pay Seller a per-acre foot charge to be set forth in the Contract…”
The WPA is not final, but it is the culmination of a decade-long relationship between MWDOC, its water agencies, and Poseidon.
The opposition group, heralding online as www.nowaterdeal.com, plans to spend tens-of- thousands of dollars to inform other ratepayers in high propensity voting areas of the county about Poseidon’s proposed “take or pay” contract, asking them to urge their local elected officials not to sign it.
Poseidon would risk private investor flight without the guaranteed income, but take or pay would be risky for ratepayers if, as happened in drought drenched Australia, if the desalination plant were to sit idle due to lack of need. Currently, the Metropolitan Water District of Southern California (MWD), which sells water to MWDOC, has more surplus water stored up now (enough for 2.5 years) than ever before—testament to the ability to create backup reliability water without Poseidon.
Ocean desalination’s high maintenance and construction costs—and much higher energy costs—make it too risky, nowaterdeal says. Stuck with higher water rates and an idle desalination plant, ratepayers would fall into a rate trap. “As rates go up, people use less water” and “lower demand results in even higher rates, with fixed costs of the entire system spread over fewer units of water.”
The high cost-prediction is from information provided by Poseidon in the WPA and factors in conveyance and maintenance costs. With an inflation rate of 3.5 percent factored in, that means an estimated cost of $1,795 per acre foot for the desalinated water, compared to $285 per acre foot for local groundwater and $835 per acre foot for imported water, nowaterdeal says.
Acknowledging the higher cost of desalination, Poseidon VP Scott Maloni recently told the OC Register that Orange County residents have to ask, “What is the value of that reliability to them?”
But the underlying push for desalination plants along the California coast by the desalination industry and other development related business interests is not about drought relief alone, as MWDOC/MWD director Brett Barbre pointed out at a recent MWDOC committee meeting.
Barbre supports the Poseidon project and a smaller, less controversial, desalination project envisioned (but far from certain) for Dana Point in south Orange County. He also thinks that ratepayers throughout the county should have to pay for both projects on the basis that they would benefit everyone, even in water districts that say they don’t want or need the water.
“I believe that desal is not only for reliability. It’s also for growth,” he said. “And there are folks on the environmental side who don’t want any growth and they think if you don’t build water projects you can conserve your way to provide enough water for everybody. And that’s not ever going to happen.”
Although most of Poseidon’s opponents have always been concerned about the environmental effects of ocean desalination, the main focus of their current campaign is economic, while advocating for the development of proven and much cheaper water sources, including the Orange County Water District’s (OCWD) groundwater replenishment system, capturing rainwater, and conservation.
To start, the group will focus on about 50,000 voters in 14 north county cities, including Anaheim, Brea, Buena Park, La Palma, Orange, Newport Beach, Santa Ana, Seal Beach, Tustin and Westminster.
Twenty Orange County water agencies had signed non-binding letters of intent or memorandums of understanding with Poseidon to purchase, cumulatively, over 80,000 acre feet of water each year. Since those non-binding agreements expired in June, 2011, not a single agency has yet to renew.
Correction 02/05/2013: Eighteen agencies have signed Letters of Intent that have no expiration date, according to Karl Seckel, MWDOC’s acting General Manager. Those agencies, with the exception of Fullerton, are slated to participate in “working group discussions” regarding Poseidon during the 2012 fiscal year. Four other agencies are participating in working group discussions but have not signed LOIs. Participation in working group discussions is contingent upon signing a confidentiality agreement with Poseidon, but not all agencies that signed an LOI signed that agreement. The MOUs, which one presumes carried more weight, have all expired.
As Poseidon works to form an agreement with MWDOC and its member agencies, it requires all parties involved in project discussions to pledge absolute secrecy at Poseidon’s whim.
That lack of transparency and the overall elitist/exclusionary attitude at MWDOC and other OC water agencies, including their secret and arguably illegal meetings with Poseidon–all observed by a growing number of citizen spectators at water board meetings, as well as the company’s financial support of an ethically challenged hit piece in the recent Huntington Beach City Council campaign, have inspired Poseidon’s opponents, not only to challenge its political hegemony with a renewed vigor but to question the nature of Orange County water management as whole.
A temporary setback occurred for nowaterdeal when its chief strategist, former Fountain Valley mayor Gus Ayer, a master at crafting successful political campaigns in Orange County, died last week.
Earlier in the month, at a recent joint meeting of MWDOC and OCWD, Ayer praised the latter for its groundwater replenishment program and overall good management, but accused MWDOC of “mission creep” and “pimping for Poseidon.”
He also questioned whether MWDOC should exist.
“It’s time for OCWD to take a very close look at taking over these [MWDOC’s redundant] functions and eliminating MWDOC,” he said. Ayer expanded on that theme in a column written just before his death and published in the Surf City Voice.
Ayer’s untimely death saddened his colleagues but his upbeat attitude continues to motivate them.
“Gus’s last words to me were ‘Give them hell’”, recalled former Huntington Beach mayor Debbie Cook, who, during the past two years, has actively campaigned for greater transparency in water management.
“That was his way of saying that, if we don’t participate in democracy, we deserve the inevitable results. Nobody can replace our friend’s skill set, but he sparked a fire that emboldens us to carry on.”