The situation seems clear to me. Claremont’s water system is owned by a private, for-profit company that pays its executives very large salaries and delivers healthy dividends to its shareholders.
Golden State, enabled by the California Public Utilities Commission, charges ever-increasing rates to Claremont’s water-users. Public ownership by the city of Claremont would eliminate the expenses of excessive executive salaries and shareholder dividends.
If Claremont buys its water company, it would finance the purchase with revenue bonds, which would be repaid by part of water users’ payments. Claremont would contract with a neighboring city to operate the water system.
Reasonable rates would be set by the Claremont City Council in a public process with residents’ input. Although it is likely that the city would need to go through a legal process to buy GSW, which would involve a judge or jury deciding the purchase price, I believe it is worth going through such a process to achieve public ownership and control of our water supply.
The first step in buying the water company is authorizing the revenue bond measure, Measure W, at the November 4 election. Please vote yes.