Two water companies pitch to acquire Bell Gardens' water system

Representatives of two investor-owned utilities told the Bell Gardens City Council on April 13 that they want to take over the city’s water system and outlined how each company would handle financing, approvals and operations.

Nicholas Subias, in-house counsel for California American Water, told the council, “We are here because California American Water is ready to be your long-term water provider.” He said Cal Am has completed nine acquisitions in the last five years and integrated more than 13,000 customers, experience he said would help the city avoid delays in the regulatory process. Subias said the company would purchase only the groundwater rights needed to serve residents and allow the city to sell excess water rights that have an “estimated value potentially in excess of $10 million.” He also highlighted the company’s customer-assistance program and Spanish-language services.

Nem Ochoa, general manager of Golden State Water Company’s Central District, said Golden State already serves about 70% of Bell Gardens and proposed unifying service for the entire city to eliminate redundancy. “We want to take this financial and regulatory burden off of the city’s shoulders,” Ochoa said, adding that his crews are “ready to apply our operational and technical abilities to the water system challenges the city is currently facing, from aging infrastructure to complex water quality issues.”

Neither presentation included finalized contract terms or an immediate council vote; Subias referenced the need for California Public Utilities Commission approval and municipal referendum steps the company has worked with other cities to secure. Both presenters framed their pitches as initial public-comment opportunities during the council’s posted closed-session agenda but spoke during the open public comment period for closed-session items.

After public comment, the council recessed into closed session at 5:25 p.m.; the city attorney said the council would reconvene for open session at 6:00 p.m. and report out at that time.

What happens next: The transcript records only the public presentations and the council’s recess into closed session; it does not include any decision, contract award, motion to pursue either proposal or a timeline for next steps.