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

  • GSW dropped the petition it was circulating to compete with the City measure. It is not clear the initiative would have made it onto the ballot, but now it is certain there will no measure competing with the City measure.
  • All CEQA, Public Records Act, and Brown Act lawsuits currently in progress will be dropped and no new ones related to actions that occurred before the agreement was signed will be instituted.  This saves the City millions in legal fees of course but more importantly, since eminent domain cannot be completed while a CEQA suit is open, this allows us to move forward when the bond is approved.  Although this does not prevent all future lawsuits, it does prevent any more CEQA suits that could block eminent domain proceedings.
  • GSW agrees not to contest the use of revenue bonds as a funding mechanism. Lawsuits related to funding mechanisms can stall a water system takeover.

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