Questions on Water Advisor’s Role

Keith Brackpool, a private entrepreneur, has emerged as a chief advisor--perhaps the most important one--to Gov. Gray Davis on California water issues. Water community insiders say no one appears to have as much influence on Davis on water issues, a role normally filled by the governor’s top resources appointees. This is a problem.

Brackpool holds no state office. He is the chief executive of Cadiz Inc. of Santa Monica, a water development and marketing firm that stands to benefit from a provision of the $1.9-billion water bond issue approved by voters in the March 7 primary election. Brackpool’s role in making water policy that may directly affect his own bottom line needs scrutiny.

Cadiz and the Metropolitan Water District of Southern California are partners in a proposed project to store water in an underground aquifer in the desert southwest of Needles as a hedge against dry years. Cadiz also would sell to Metropolitan the well water pumped from land it owns. The two agencies would share the $150-million cost of project facilities. The bond measure qualifies the MWD for a grant of up to $50 million to help pay for the project.

Brackpool has counseled Davis on water projects since the governor’s 1998 election, to which Brackpool contributed $133,000. He was part of the postelection water transition team and has since been involved in an array of water issues, some of which could further improve his firm’s prospects. These include a role in negotiating the massive Cal-Fed project to restore the Sacramento-San Joaquin Delta and to stabilize water supplies for most of California. Key features of Cal-Fed include water marketing and water banking, two of Cadiz’s specialties.

Brackpool says he had no role in writing the last-minute language that made the Metropolitan-Cadiz project eligible for the state bond subsidy. But he was considered a key strategist in putting the bond issue together and was chairman of the $2-million campaign that resulted in voter approval.

State Sen. Steve Peace (D-San Diego), a legislative leader on water matters, acknowledged to The Times’ Frank Clifford and Tony Perry that it is “unusual for a private citizen to play the role for a governor that Keith has.” But Peace added he has seen no sign of any inappropriate conduct by Brackpool. Still, it is questionable for a private water entrepreneur to be advising the governor on policies that may impact his own business or those of his allies. As objective as Brackpool might be on such matters, it smells like a conflict of interest.

Brackpool is open about his role, saying it’s up to Davis whether he takes his advice or not. But this relationship on water, which the state administers as a public trust, is unusual at best. As long as the tie exists, it will raise questions for the Davis administration.