Measure W: Claremont water bond is focus of discussion
“Those on both sides of the city’s takeover of the local water system agree the issue is potentially years away from being resolved.
The first test will come Nov. 4 when Claremont voters will decide whether the city should leverage a $135 million bond – known as Measure W – to purchase the water system from Golden State Water Co.
If the measure passes, the next step in the eminent domain proceedings will be for the city to initiate a declaration of necessity – Claremont’s claim to acquire the system.
“It could take a number of years to come to fruition,” Mayor Joe Lyons told a group of residents and business owners gathered at the DoubleTree Hotel on Wednesday afternoon.
Putting aside how long it takes for the city to initiate the takeover process, there’s the issue of how long the trial will take as well as the appellate process, said Rod Smith, who was representing Golden State Water at the event.
Smith told those attending the panel discussion put on by the Claremont Chamber of Commerce that it could take between $5 million to $10 million on each side for the legal proceedings.
Speaking in favor of the takeover was Freeman Allen with Claremont Friends of Locally Owned Water, also known as Claremont Flow, while Mayor Joe Lyons only addressed questions that dealt with the measure. On the opposing side was Smith, who was joined by Mark Sterba with Claremont Affordable Water Advocates.
Claremont was proposing a $55 million bond measure to help with the acquisition if the cost of system acquisition were to exceed $80 million. City officials believe it can borrow revenue from a special enterprise fund — based on existing water rates and charges — that can result in earnings of $80 million, enough to acquire the system for that price.
Allen said the effort to take over the water company in Claremont is about creating transparency as well as control costs.”
Marquez, Liset. Inland Valley Daily Bulletin 17 September 2014.