Golden State Water Says It Will Not Sell

A second offer for the purchase of Claremont’s water delivery service will likely be met with another “No,” the city’s supplier Golden State Water Company said Monday.

The company released a statement by Denise Kruger, Golden State Water’s Senior Vice President of Regulated Utilities:

“As we have stated consistently, Golden State Water Company’s Claremont system is not for sale. We will communicate with the city as appropriate regarding its offer, which would only cover a fraction of the cost of the Claremont water system.

We think that it is in the best interest of the community for the city to work collaboratively with us to address concerns, and we are eager to begin a constructive dialogue.

An independent analysis has proven that a city effort to acquire the water system will result in higher water rates of at least 30 percent higher than they are today, and a city water system will not be able to match Golden State Water's 24-hour customer service, water quality expertise and ongoing maintenance to the water system. Our focus continues to be providing high quality water and exceptional service to our Claremont customers.”

The statement is in response to an updated offer by Claremont to Golden State Water Company for $55,094,000 for the purchase the water system and its assets from company. The second offer was announced on Oct. 8 and was prepared by an independent appraiser and conducted according to state law, city officials wrote in their own statement.

“The offer made to Golden State is for the full amount of the current fair market value of the Claremont water system,” Claremont City Manager Tony Ramos wrote at the time of the second offer. “We are hopeful that Golden State will agree to enter into meaningful negotiations with the City regarding our offer. Claremont residents could benefit greatly from receiving water from a municipally-owned system. Today our residents are required to obtain water from a company that is focused on generating a profit. Like the majority of our state, Claremont residents have a right to obtain safe and reliable water without having to pay profits to Wall Street."

Water company is opposed to the move insisting Claremont residents will see service decline and water rates increase if they city takes over.

The original offer of about $54 million – made in November 2012 – was raised because because since then the California Public Utilities Commission approved the water company’s request for rate increases in 2013, 2014, and 2015, city officials wrote. They has to redo the appraisal, officials said.

Should the city ultimately acquire the water system, local officials would establish future rates, they added.

"Over the past several months, City staff has been carefully evaluating key issues related to the City's potential acquisition of the water system. In November, the City Council will conduct a town hall meeting where residents will learn about issues relating to the potential acquisition of the water system. In addition, our residents will have an opportunity to share their thoughts and opinions with the City Council regarding the future of Claremont's water system," Ramos wrote.

The town hall is scheduled at 6 p.m. on Nov. 6 at Taylor Hall, 1775 N. Indian Hill Blvd.