Real Estate Executive Urges Californians, Legislators to Address Water Issue

As someone who works closely with the building and construction industry, Ruby Simpson, president of Simpson Commercial Properties and a member of Commercial Real Estate Women Inland Empire chapter, is keenly aware of the link between adequate water supply and the economy.

She is also aware of the problems facing California's ageing water infrastructure. "The big problem is all the water is in the North, while all the people are in the South," Simpson said.

California is largely dependent on water coming from the Sacramento-San Joaquin Delta, and much of the infrastructure carrying it from Northern California has not been updated in almost 50 years. Additionally, our water levees, channels and aqueducts were built to serve a population of about 20 million. Today, the state’s population has almost doubled that, putting a strain on our water system to meet more demand.

Simpson also said that California's ageing water system is dangerously susceptible to earthquake damage. She said that should any of our core water channels fail, the water situation is Southern California would be a catastrophe.

Simpson added many Californians take water for granted. They turn on their taps and they expect it to be there, but they have no idea of the cost of producing and supplying water. "The money has not been spent to maintain the water system," she said. "People don't think of water being an issue, until they see a burst water pipe."

The cost of purifying water is also very expensive. Simpson said that if water prices rise, because of increased transportation and processing costs, it could slow down real estate and economic development. "Expensive water will make development even more expensive," Simpson said. “This is just one more cost to do business and another reason for companies to move to other states,” she added.

However, rising water costs are not the only issue that can slow down development. Simpson said California's pro-environment policies can also be a hindrance. Many California activists see development as creating more environmental damage.

"Most of the time environmentalists are trying to slow down development," Simpson said. "Legal challenges by environmentalists can slow down and make development even more expensive. These costs get passed onto the consumers." If a developer takes longer than expected to finish a project because of legal challenges, the final project is more expensive -- and the buyer pays the price.

Simpson predicts that Californians won't address the water issue until they are forced to do so."There will be a horrific crisis, and the public will have to deal with it," she said.

According to Simpson, members of the public need to urge their elected officials to take action on the water issue. "This is an issue that the government and the water agencies need to address," she said.  Some agencies are banding together to assist each other in infrastructure development, but their needs to be a statewide plan.”

"Everyone has to be looking at steps they can take to conserve water and treat it like a precious resource," Simpson said. "Developers and builders need to lobby legislators to pass legislation that encourages businesses to stay in California."