Measure W Fact Center

Ballot Measure W question: 
Shall the measure permitting the City of Bell Gardens to sell the Bell Gardens Municipal Water System to the Golden State Water Company be adopted? 

Background

On December 11, 2025, the City of Bell Gardens released a Request for Proposals (" RFP") for the purchase of the City of Bell Gardens Municipal Water System ( the "Water System"). The City received two proposals in response to this RFP, including one from Golden State Water Company ("Golden State") dated March 16, 2026 ( the Proposal"). On June 8, 2026, the Bell Gardens City Council held a noticed public hearing on the Proposal from Golden State, and it wishes to proceed with selling the Water System to Golden State on the terms presented in that Proposal. The City's voters must approve this sale (Pub. Util. Code, § 10061).

For at least the following reasons, the City Council finds that the terms presented in the Proposal show that selling the Water System to Golden State is in the public interest, the City will receive just compensation from this transaction, and Golden State will provide equal or better water service to the City's residents on terms that are just, reasonable, and do not discriminate against those residents.

1. The proposed sale of the Water System to Golden State consolidates water service under a single, experienced provider with established operations in the City, thereby promoting operational efficiency, system reliability, and administrative simplicity for residents.
2. The proposed purchase price of $ 41,000,000 constitutes fair and reasonable compensation for the Water System, taking into account the system's assets, infrastructure condition, water rights, and future capital needs, and will provide significant financial benefit to the City.
3. The proposed sale will relieve the City and its taxpayers of substantial financial obligations associated with the ownership, operation, and maintenance of the Water System, including capital improvements necessary to address aging infrastructure and emerging water quality requirements.
4. The Proposal provides meaningful short term protection to residents by committing to keep existing water rates in effect until at least January 1, 2028, thereby ensuring a stable transition period for customers.
5. Selling the Water System to Golden State means the City's residents will have access to a larger regional water system, redundant supplies, advanced treatment capabilities, and 24 -hour customer service.
6. Incorporating the Water System into Golden State's broader regional network will enhance long-term system reliability, including through access to greater capital resources, asset management programs, and a larger customer base over which to spread the cost of service.
7. In particular, the sale will benefit City residents by spreading the cost of future capital improvements — including necessary investments in treatment facilities, storage infrastructure, and pipeline replacement — across Golden State's broader regional customer base of approximately 100,000 service connections. This regional cost -sharing structure is reasonably expected to significantly reduce the financial burden that would otherwise fall on the City's smaller customer base alone.
8. Golden State has demonstrated the capability to seamlessly integrate the System into its existing operations to ensure the continued provision of safe, reliable, and high -quality water service to City residents without interruption.