CLAREMONT - While the City Council met in closed session Tuesday night about possibly buying the Golden State Water Co., a water official said Wednesday his company is not in favor of any purchase.

"Golden State Water Co. provides exceptional water service to the residents and businesses in Claremont at competitive rates," said Alice Shiozawa, district manager for the foothill district. "We do not believe the city's ongoing consideration of purchasing the water system is in the best interests of the community."

No action was taken Tuesday night despite the council meeting in closed session both before and after the regular council session.

Nonetheless, Claremont officials will continue talking about the issue for the next couple of months "at least," said Councilman Sam Pedroza.

"The important point is we're seriously talking about it," Pedroza said.

Golden State, whose Claremont office is at 915 W. Foothill Blvd., Suite E, is a public utility and a wholly owned subsidiary of San Dimas-based American States Water Co.

City Manager Jeff Parker said the council had previously met with Golden State officials in 2004 and 2005 discussed a purchase price, when the water company was known as Southern California Water.

Parker said he had seen letters that put a city consultant's estimate of the company's value at $40 million while the company's estimate was $100 million.

An American States Water Co. report

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said "GSWC disagrees with the consultant's valuation assessment. As of Dec. 31, 2008, management believes that the fair market value of the Claremont water system exceeds the $40.9 million recorded net book value and also exceeds the consultant's estimates of its value."

Councilwoman Linda Elderkin said her biggest concern was "so many residents think they want us to acquire the water company to bring the rates down, and I think it's been made clear from so many sources that it wouldn't happen for a long time. Eventually, the long-term rates would go down. In the short term, we can not do better than Golden State."

Pedroza said regardless of the outcome for purchasing the water company, the city will continue to fight water rate increases through the California Public Utilities Commission process.

"We're going through the whole process of fighting," Pedroza said.

Elderkin said the city will "consult with their attorney, examine the situation from many points of view and make a decision on if it's appropriate to do more than we've done or take it off the table."