In the sleepy college community of Claremont a contentious dispute over who controls the city's water utility is brewing, and its implications reach far beyond the Pomona Valley. Battles over water are nothing new in California, where, after three arid years in a row, over 80% of the state is currently experiencing a drought emergency.
Who has access to water, how much they are allowed to use, its cost and who controls its distribution are age old issues that are only made worse by overpopulation and climate change.
Water = Money = Power.
Golden State Water Company is the water utility for Claremont and numerous other Southern California communities. Since 2012 their rates have doubled. "Golden State has increased rates by about 50 percent over the past two years, including temporary surcharges to cover operational costs. The rate hikes were approved by the California Public Utilities Commission."
http://www.sanluisobispo.com/...
The rate increases kind of snuck up on most customers because they were at first hidden in a billing gimmick. Up until the end of 2011 GSWC's bi-monthly billing had been steady and predictable, but in January 2012 the total amount due dropped enough to notice. At first glance this seemed pretty great. Most people just weren't paying that close attention. They didn't notice that the price per unit had actually gone up and the billing period had changed. But when 30 days later came another bill, people began to realize that the billing period was now monthly rather than bi-monthly and their water bill was now higher. What made it even more confusing was that while the billing period had previously been in the middle of the month, now it was from the first day to the last day of each month. The timing of the rate increase simultaneous to the changes in billing appeared to be a deliberate attempt by GSWC to disorient its customers and obfuscate what was going on. Business and homeowners were pissed off.
After complaints to GSWC seemed to get an unsympathetic response, angry residents and businesses began raising a ruckus with letters to the editor and plaints at City Council meetings. "In the fall of 2012 the City Council began to discuss an appraisal of the water company's assets, with an eye toward the possibility of obtaining them." http://www.dailybulletin.com/...
Then the dispute went national.
The ongoing battle with Golden State Water boiled over this week after CBS aired an investigative report by David Goldstein last Monday night. Mr. Goldstein’s record request to Golden State CEO and President Robert Sprowls to release documentation outlining GSW’s expenditures, including infrastructure updgrades, employee travel, entertainment expenses and health club memberships, was denied. As a private corporation, Golden State asserted that it is not required by law to release expense reports.
Through a mass mailer to customers, unfortunately dated 9-11, GSW Vice President Denise Krueger challenged the reporter’s methods, stating that Mr. Goldstein did not address water usage when highlighting the $598.98 water bill provided by Claremont resident Hal Hargrave of Claremonter’s Against Outrageous Water Rates. In an effort to justify GSW’s request for a 24 percent rate increase, Ms. Krueger explained that the company’s “rates are designed to promote conservation.”
https://www.claremont-courier.com/...
In their missive GSWC used the classic conservative chestnut opening: the City was planning to raise taxes. Even in a progressive haven like Claremont, this gambit can gain a certain amount of traction. But Golden State made a possibly fatal mistake. They included a thinly veiled attempt to divide the community both geographically and, perhaps unwittingly, demographically. They attributed high water usage by residents in the north part of town as the reason for higher rates in Claremont overall, when compared to neighboring communities.
In September, Golden State mailed out a flier to homeowners with a map of Claremont that detailed water use showing the highest water usage occurred in neighborhoods on the north side of the city.
At the Sept. 25 council meeting, Councilman Sam Pedroza referred to the map, saying he thought Golden State was trying to split the city.
"My feeling was they're trying to get the southern part of Claremont to be upset at the northern part by a map like that," Pedroza said.
Golden state succeeded in alienating the wealthy residents who live in the northern part of town, many of whom belong to the 1%, whose green lawns were likely sporting Romney/Ryan signs and might normally be supportive of the private sector in a battle with government over imminent domain.
Claremont city officials and a group of residents called Claremonters Against Outrageous Water Rates have been pushing back against the water company about what they say are its high rates and lack of transparency, which the water company disputes.
Hal Hargrave, of the Claremonters group [and a north Claremont resident], agreed with Pedroza's take about the Sept. 11 flier.
"We believe they're trying to divide and conquer the city with their last PR piece," Hargrave said.
http://www.dailybulletin.com/...
The City responded with an aggressive mailer of its own basically calling GSWC desperate liars. The water war was on!
Here is an excerpt from the City's letter:
Your City Council is fighting Golden State Water’s endless applications for rate increases. Not only is the City Council actively opposing Golden State Water’s recent application for a 24.54 percent increase, we are also examining other options in order to oppose Golden State Water’s actions.
So why is Golden State Water so desperate and willing to run a mail campaign in Claremont? The answer is simple…profit. It is clear that Golden State Water Company will spend any amount of money it takes to keep the cash flowing from Claremont ratepayers. Under state law, private water companies may submit rate increase applications to the California Public Utilities Commission (PUC) every three years. Golden State Water Company never misses an opportunity to raise rates in Claremont. In fact, Claremont residents are forced to pay approximately 84 percent more than our neighbors who receive water from a municipally-operated provider.
Under the PUC’s guidelines, private water companies, unlike municipally-operated providers, are guaranteed a profit. Golden State Water generates extremely large profits. In the last quarter alone, Golden State Water’s parent company announced profits of over $15 million. These profits come directly from ratepayers.
https://www.claremont-courier.com/...
The Tea Party comes to the rescue!
Caution: you are now entering the Snark Zone
The City Council offered to buy the utility for $55 million but Golden State refused the offer. "The system is not for sale" Golden State spokesman Ben Lewis said.
All hope for an amicable settlement seemed to be lost.
The City Council voted unanimously for a ballot measure to take over GSWC.
But not so fast!
In the final hour, a previously unknown group calling themselves Claremont Affordable Water Advocates (CAWA) appeared on the scene and insinuated themselves into the battle by announcing their already negotiated "Memorandum of Understanding with Golden State Water Company."
Spearheaded by Claremont resident [since 2000] Donna Lowe, a businesswoman who ran for State Assembly in the 41st district in 2012 [and was resoundingly defeated] and founded the Claremont Conservatives Tea Party, CAWA members are an eclectic mix of lawyers, sales people, business owners, consultants and retired folks who, according to Ms. Lowe, “don’t have a degree in city politics.”
https://www.claremont-courier.com/...
Good to know about the "degree in city politics" thing. And the Tea Party thing--good to know.
Many residents at first questioned if CAWA was anything more than a front for the water company, mounting a last ditch attempt to stop the bond measure for a city takeover from going to a vote. But Lowe and company presented themselves as a "grass roots movement" that began months ago with a business trip to Sacramento by Ms. Lowe, and an incidental meeting with public relations representatives of GSWC. Back in Claremont she recruited Tea Party colleagues and Assembly campaign contributors to form CAWA. “We want everyone to realize there are alternatives,” CAWA member Bruce Cathcart explained. “The rates can be controlled and we don’t have to have the city do it—they don’t know how to do it.” The Tea Party to the rescue.
Many Claremont residents first became aware of CAWA, and their Memorandum of Understanding, when they sent out two flyers this June. Large yellow letters advertised: "Lower water bills. Local control. NO $135 million water tax." On the back side was an "Open Letter to Our Claremont Neighbors." In it they promoted their "compromise agreement" which had been negotiated directly with Golden State Water, deliberately circumventing the City. There is a bold header introducing a 20 point commitment made with GSW but no real details other than five bullet point headers: Lower Water Bills, Local Control, Commitment to Conservation, Alternatives to the WRAM [Water Revenue Adjustment Mechanism], and the real kicker Supporting Local Schools.
Supporting local schools? Really?
CAWA and Golden State Water will create a water conservation and STEM curriculum to teach Claremont students the value of water, along with critical science, engineering and mathematics skills.
Well isn't that nice?--especially knowing how much the Tea Party respects science and public education. This is a win/win. Not only do they save the residents from tyranny and taxation but they can also teach the kids science and math the Tea Party way, before they are corrupted by the lefty liberal scientific method currently being forced upon innocent children in Claremont schools. This smells suspiciously like something the Koch brothers would sponsor, like what they are doing in Kansas.
http://www.huffingtonpost.com/...
The 20 points enumerated in the MOU on the surface commit GSWC to many things like their lead off: "Lower water bills for residential customers." Nice!
Very insightful is point 9:
"Support for CAWA intervener status. Golden State Water shall support CAWA's direct involvement in the ratemaking process. This includes the following:
--CAWA to determine who participates in its effort.
--Golden State Water will provide CAWA with references for expert legal counsel to provide independent guidance and support to CAWA's involvement.
--Golden State Water will not oppose CAWA's requests for reimbursement of CPUC eligible expenses accrued as part of their good faith efforts to impact the process in a meaningful and consumer-focused way.
--CAWA will be empowered to address any proposed changes for ongoing service or system improvements to ensure Claremont customers are protected.
https://www.claremont-courier.com/....
This sounds a lot like CAWA, a.k.a. Claremont Conservatives Tea Party, will be calling the shots when it comes to rates, supplied legal counsel by GSW and other financial support from CPUC, and be the designated entity responsible for defending the water rights of the good citizens of Claremont.
Could Koch money or at least inspiration and encouragement be motivating Ms. Lowe, founder of the Claremont Conservatives Tea Party? How they paid for the mailer and other things like their web site is not clear. Remember they claim to be a "grass roots" organization, independent of Golden State Water Co. FollowTheMoney.org does list candidate Lowe's 2012 financial contributors and over half of her contributions, $88,385, came from "uncoded" Top Industries sources. Some well know Republicans like Tim Donnelly, far right candidate for Governor, his California Patriots PAC, Kevin McCarthy, Majority Whip-elect, the NRA and the National Right to Life Committee, also show up as Top Contributors. It is hard to imagine that there isn't some Koch money in her coffers, hidden in the mysterious "uncoded" line or in the donations from the campaigns of several other Republican campaigns.
Fortunately, Claremont, AKA the City of Trees and PhD's, has perhaps the most educated population per square mile in America, and is unlikely to buy what Donna Lowe and her Tea Party affiliate is selling. The following excerpt from a recent letter to the editor perhaps sums up the point of view of many citizens.
Ms. Lowe conveniently ignores the fact that Golden State Water (GSW) had an ongoing history, even during the economic recession, of gouging consumers with consistently excessive, and creative, cost increases. She overlooks the fact that GSW wasn’t listening to consumer complaints until the city and Claremonters Against Outrageous Water Rates publicly exposed the profiteering abuse that was taking place.
GSW got caught with its hand in the cookie jar and is desperately attempting to confuse the public and keep their cash cow. As part of this disorientation process, they appear to be cultivating naysayer politicos and civic-sounding facades.
When CAWA took out its full-page ad in a recent issue of the COURIER, I hopefully went to their website to read their material. I suggest informed Claremont citizens do the same. Unfortunately, much of the content is simply a rehash of GSW public relations dogma, and most of the so-called compromises have questionable or poorly-defined substance.
https://www.claremont-courier.com/...
The bond measure to determine the fate of who owns Claremont's water utility is slated to be on the ballot in November. A lot can happen between now and then but it is clear that Golden State Water Company had completely botched their relationship with the citizens of Claremont. Whether CAWA can convince voters to give the utility another chance will be known soon enough, but the outcome of the election is likely to provide a roadmap for the many other Southern California cities served by Golden State.
This dispute has made for strange bedfellows. Conservative leaning constituents have joined forces with more liberal activists, and many wealthy business and land owners are backing eminent domain actions by local government. Water is in short supply all over the state and pleas from the Governor to voluntarily conserve have met with mixed results, especially in Southern California where usage appears to have increased slightly. Raising the cost of water usage, enhancing incentives for converting to drought tolerant landscaping and increased fines for waste are all in the offing. No matter who owns the utility it is clear that it will no longer be business as usual and price schedules must be fair, transparent and evenly applied throughout each region. Water rights affect all citizens and are too important to be left to a rouge group of politically motivated activists in cahoots with the private for profit company charged with stewardship of the life blood of a community and its citizens.
Water = Money = Power.
---------------------------------------Disclaimer-----------------------------------------------
I reside and work in Claremont. Both my children were born here. I am not a member of any of the entities mentioned in this diary nor an employee of either the City of Claremont or Golden State Water Company.