WATER CRISIS WILL BE WITH US THE REST OF YOUR LIFE

1

by Tom Havens

 

Tragically the dream team created a monster QSA that is equivalent to

water cancer …  Fixed income and no control of costs and liability is

a formula for bankruptcy…The truly sad part is that it impairs the

future of the valley and robs it of billions in fair market value for

its senior precious water. To then be exposed to  legal adverse

consequences of environmental lawsuits forever is profoundly nuts. Who

will pay the medical bills??? You will.  You get what you negotiate…

 

 

 

This dual tragedy of liability black cloud and miss priced water is a

huge depressant on land values.  Single crop land in Midwest goes for

13,000 per acre.

 

 

 

California will not pay the IID .   2 reasons….1. it would be the

lowest possible political priority.  2.. Ca is running a 16 billion

deficit…It has billions in state pension liabilities. It has 10.7%

unemployment (3rd in nation) Mun i bankruptcies are occurring

regularly… It has  lowest bond rating of all 50 states.   Common

sense tells you not to wait , tells you to be proactive and go on

offense…..Create a new negotiating process—- like SD has done with

5 amendments. …It is time IID hired a new team to negotiate a much

better deal like we have aggressively advocated for the past 3

years….and have started the momentum toward appropriate awareness to

do so…You have nothing to lose… The status quo is just not

acceptable….We can do much better, give us a chance.

 

 

 

Headlines in Denver paper today: $4.3 billion Sterling Ranch

development of 12,000 new homes canceled ..Reason: failure to line up

enough water…Developers all over the West are holding thousands of

acres that are worthless without new water…..We are approaching a new

era where price will be secondary to availability of new water….and

first priority water like IID owns is invaluable.  Southern California

is one of the most desirable places on earth..Can you imagine it in 50

years??

 

 

Can you imagine the price of water in 50 years……When you can—-

realize QSA lasts 45 years with dream team design to make it 75

years….Why on earth would IID want to extend it???? That may come to

political action, a sure loser for the Valley.

 

 

 

Did you know the horrific MWD number one which takes at cost all the

cheapest  conservation projects in valley, leaving the more expensive

for you to now pay for, and if there is a shortage, they get the water

before you do…. Did you know this contract could have ended with

notice after 15 years????? BUT WAIT   MWD one was thrown into the QSA

making it permanent. WHY ??  Imagine—-IID by dream team gave up 200

million a year in potential income per year which in 40 years amounts

to 8 billion…..yes….and if I am correct, prices will increase

rapidly for the next 20 years. ( no one thought oil would go from 12 to

147 in 10 years )

 

 

 

 

Did you know IID agreed to sell CVWD 100,000  AF at $ 75 per af…

which may cost 750 per af to conserve ……and CVWD can sell the water

to MWD if they don’t need it !!!!!!!  How  or why does it make sense

for IID to lose 70 million per year providing lower priority CVWD  with

water they can easily sell for 250 per af  or 20 million profit per

year…..?  Yes and the dream team negotiated a storage contract with

CVWD where IID pays 100% of the cost to develop a storage area, then

charges IID about $500 in costs per af and eliminates 10% of iid stored

water per year after 5 years???  I couldn’t make this up, I suggest you

ask iid for copies of the CVWD contract to see for yourself what the 1

million page QSA is all about…You will not believe it until you read

it…..They never thought anyone would read it…I did.!!!  this part

is less than 20 pages….get a copy.

 

 

 

 

American Water Resources is fully capable and ready to utilize the best

and  brightest minds in the country( Chuck DuMars )  to  A.   negotiate

a new QSA    B.   set up storage-water bank    C.  create an EWAP

emergency water assurance plan for S. California or drought insurance

and    D.  develop a much needed new strategic image for the future of

IID and   E. negotiate a cost plus opportunity to farm algae in the

valley. These are dynamic concepts outside the scope of IID but are

functional opportunities that can create billions in value for the

Imperial Valley….This is a paradigm shift to making profits and

creating prosperity…..We can do that now… We can do better.  Why

not?

 

 

 

 

URGENT is a key word….the world is changing rapidly as the valley

cascades backwards with all the benefits going to 22 million on the

coast and all risk, cost and liability accrues to 170,000 valley

citizens… Is this ok with you.?….We think it is time to bring the

money back to the valley…don’t you?  With  new perspective and

strategic management a new team could accomplish great success for the

IID and the Imperial Valley… I have never seen a more attractive

possibility… The pioneers set it up….Is it time for desert miracle # 2.

 

Tom Havens

1 COMMENT

  1. VOTE FOR THE NARROW AGENDA OF WATER SPECIAL INTERESTS AS MR HAVENS SUGGESTS WITHOUT ENHANCING AND ENFORCING IID’S GOVERNANCE POLICY AND WE WILL STEP BACK INTO THE PIONEER DAYS AND A ONE HORSE ECONOMY WHILE STILL HAVING A LOOSE ORGANIZATIONAL AND OPERATIONAL BUSINESS CLIMATE AT IID THAT ALLOWS FOR DIRECTORS AND MANAGEMENT TO CORRUPTLY PLACE THE INTERESTS OF THEMSELVES AND SPECIAL LAND BARRON INTERESTS BEFORE THE REGIONAL PUBLIC GOOD AND THE OVERALL INTERESTS OF THE IID RATEPAYER. VOTE ONLY FOR IID CANDIDATES THAT ADVOCATE FOR THE ENHANCEMENT AND ENFORCEMENT OF IID’S!!!!! GOVERNANCE POLICY.

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