Thursday, April 25, 2013

Water Contractors Wrest Control of Delta Tunnels from the DWR - Burt Wilson

Water contractors wrest control of Delta tunnels from the DWR

By Burt Wilson
4-25-2013
 
            When the Bay Delta Conservation Plan (BDCP) crashed and burned the first time, Gov. Brown brought his good friend Dr. Jerry Meral on board to straighten out the mess. Before Meral, the BDCP Board of Directors was made up of mostly water agency people--the MWD chairman, Corporate CEOs and hangers-on. Thus from the git-go this had all the earmarks of a private, not a public works, project. Meral, in his first showy move towards legitimacy, revised the board, got rid of many of the water people and replaced them with benign bodies--strictly cosmetic changes.
            Meral's second action was to declare transparency as the order of the day. Every bit of BDCP action would be open to public scrutiny. But not three months after this charade, Meral was caught in flagrante delicto in secret meetings with water contractors, imploring them to fund the Delta tunnels and provide what is called a "revenue stream" for the DWR to build the twin cement monsters.
            Meral did this for Gov. Jerry Brown to keep the Delta tunnel construction from having to rely on general obligation bonds which would require they be voted on by the public. Jerry Brown did not want to repeat 1982 when the Peripheral Canal campaign lost by a 2/3 vote of the people, hence the move towards private funding.
            Recently, as reported half-way in the Sacramento Bee, Meral was caught in flagrante delicto again, holding private conferences with members of key water agencies. These agencies--Westlands Water District, Metropolitan Water District of Southern California, Santa Clara Valley Water District, Kern County Water Agency, San Luis and Delta-Mendota Water Authority and the State Water Project Contractors Authority have come together as one agency--the State and Federal Water Contractors Agency (SFWCA). This new association effectively created the principle authorized funding agency for the tunnels and also signaled to anyone who could see it that they were attempting to bring both the fed's Central Valley Project (CVP) and the State Water Project (SWP) under their control.
            As you can well imagine, this band of brothers thinks that if they are going to foot the bill for the revenue stream that will allow the DWR to build the twin tunnels, they should have some say in the design and construction of said tunnels. The DWR, the biggest of a whole host of bloated state agencies, is used to having its own way with water in California and wants to see all design and construction under its control. Three years ago it dropped a mild bomb by announcing that it would hire 5,336 new employees when the permit to build was granted. This would give it more water-grabbing leverage than even Mr. Mullholland had!
            And so this mini-drama between the DWR and the SFWCA is playing out now as the BDCP limps and staggers toward its questionable denouement.
            The Bee quoted DWR Director Bruce Cowin as saying, "The (water) contractors are very concerned, and so are we, that we build this with world-class-type management. They are naturally concerned, as stakeholders, that if they are going to step up and pay these costs, that they have a significant voice." It's expected that Cowin would put a smiley-face on such a significant division of interests. That's what big-time operators do when they know they've lost leverage in a big fight. The upshot is that the DWR and the SFWCA have drawn up a "joint powers" agreement with the DWR Director as chairman of this new entity, but having no power at all since all decisions will be made by majority vote. And guess who's in the majority.
            This was bound to happen because the SFWCA is not out to finance the twin tunnels out of the goodness of their hearts. They want a return on their investment and that means control of how much water can be diverted and at what times and who it can be sold to, i.e, everything directed towards maximizing profit for the water contractors.
            Much is at stake. With the water contractors now able to sell water at any price to the oil companies for fracking purposes, upping the ante for agriculture by increasing the cost per acre foot and increasing local water rates ("the beneficiaries pay"-Delta Stewardship Council), we will see our food, natural gas and oil prices rise in concert with the rise in profits of the water contractors. So don't be surprised if sometime soon you find the water contractors standing out in the street yelling the state motto.

            "Eureka! I have found it!"

     I was on the media staff of the "No on 9" campaign against the peripheral canal in 1982. We won by a 2/3 vote statewide and stopped the canal. Voters knew then that it was just another watergrab just as poeple know that today's move to construct Delta tunnels is just another watergrab. You know it too. 
Sincerely,
 
Burt Wilson
Editor and Publisher.
Public Water News Service
  

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