How does GSW benefit from the July 31 agreement with the City?

A:
  • They have succeeded in getting the measure changed to request up to $135 million which they hope will scare off enough voters to defeat the measure.  They hope that the voters won’t be able to add up 80 + 55 and see that the worst-case scenario hasn’t changed at all from that indicated in the original measure asking for $55 million. They also hope no one will notice the “up to” which clearly indicates that we aren’t really expecting to have to go that high to purchase the system.
  • They gain access to portions of the feasibility study funded by the City when it was trying to determine if proceeding with acquisition of the water system made economic sense. GSW hopes to challenge the information and methods that determined the appraised value of $55 million and that we could repay as much as $80 million in revenue bonds without paying more than GSW would be charging us.

 The agreement does not prevent GSW, or any other group, from bringing future lawsuits.

Be the first to comment

Please check your e-mail for a link to activate your account.