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SJW > SEC Filings for SJW > Form 8-K on 9-Feb-2009All Recent SEC Filings

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Form 8-K for SJW CORP


9-Feb-2009

Other Events


Item 8.01 Other Events.

Effective February 6, 2009, SJWTX, Inc., a wholly owned subsidiary of SJW Corp., acquired from the City of Bulverde, Texas (the "City")and Guadalupe-Blanco River Authority, a conservation and reclamation district and political subdivision of the state of Texas("GBRA") the right and obligation to provide water service within the retail water service area of the City, and certain areas outside the City ("Bulverde Service Area"), and substantially all of the retail water service assets of GBRA associated with GBRA's existing facilities located within such service area. The agreements by which GBRA had a long term right to construct and operate a retail water system within such service area were also terminated. The purchase price for the assets is approximately $2,800,000 to GBRA and approximately $900,000 to the City, comprised of both cash and the payoff of certain existing liabilities of the City (which includes certain payments to GBRA). As previously reported in a Form 8-K filed on September 11, 2008, SJWTX, Inc. entered into the agreements for such acquisition with the City and GBRA on September 10, 2008.

The addition of the Bulverde Service Area increases the retail area served by SJWTX, Inc. to approximately 235 square miles, an increase of more than 54%. There is not an appreciable increase in the number of new water service connections as part of the acquisition. Given the Bulverde area's planned development and proximity to San Antonio, expansion of SJWTX, Inc.'s retail business into this area should improve its annual growth in new customers.

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