Santa Margarita Water Chairman Says Check Facts

* Customers of the Santa Margarita Water District are being asked to sell local control of their water and sewer system to a New Jersey-based corporation. Privatization, consolidation, reduced debt or district downsizing may be just four solutions our community may consider in determining the operation of its water and sewer systems.

But a New Jersey-headquartered company, American Water Works, says it knows, without public input, what is best for the customers of Santa Margarita Water District.

This company is canvassing neighborhoods and making slick promises of low rates without having any financial information from the Santa Margarita Water District.

What we do know about the company is that it has assets valued at over $3 billion, its shares are traded on the New York Stock Exchange and, if it purchases the Santa Margarita Water District, it answers to its stockholders, not the residents who live here.

The New Jersey-based American Water Works Co. is circulating petitions to initiate Local Agency Formation Commission proceedings to dissolve the Santa Margarita Water District without a local election.

The Santa Margarita Water District is receptive to any plan that offers the best deal to our customers. But we think our customers are smart enough to look at all the proposals and make a decision at the polls.

We urge customers of the Santa Margarita Water District to not sign away their rights to a locally operated water and sewer system. Let’s look at all the information together as a community and make decisions based upon realistic facts--not slick, empty promises.

JIM HOLMES

Chairman, Board of Directors

Santa Margarita Water District