November 15,2015-
As announced in an 8-K filing with the Securities and Exchange Commission, California Water Service (Cal Water) has been notified that the City of Visalia intends to conduct an appraisal of Cal Water’s water system properties. Although the City may or may not make an offer to purchase the drinking water system after the appraisal is complete, “this is typically the first step in a hostile takeover”, according to Cal Water spokesperson Shannon Dean.
Privately-owned Cal Water issued a press release today in response to a phone call from the city says Vice Mayor Warren Gubler. “We needed to tell them we would like to do an appraisal.”
“There have been complaints about the service from citizens and the city is simply exploring the option of a purchase to keep the price of water in Visalia affordable” he says.
The Cal Water news release minces no words. “Our system is not for sale, whether the City opts to spend taxpayer dollars on an appraisal or not. We will oppose any attempt to take the drinking water system. The people of Visalia deserve to continue receiving the quality, service, and value that we have provided since 1927, not the higher taxes and water rates that would almost certainly result from a hostile takeover,” she said.
Cal Water serves about 132,200 people through 42,400 service connections in Visalia. The company has provided water service in the area since 1927. The company provides service to Bakersfield, Livermore,and Dixon among the towns in the state they serve.
In California a number of cites have municipal systems including LA, San Francisco, San Jose, Fresno, Tulare, Hanford and San Luis Obispo.