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HomeMy WebLinkAbout1986-349 1 RESOLUTION NO. 86-349 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF 2 SAN BERNARDINO DECLARING THEIR INTENTION TO JOIN WITH EAST VALLEY 3 WATER DISTRICT IN THE ACQUISITION OF THE SOUTHERN CALIFORNIA WATER COMPANY, HIGHLAND AND DELMANN WATER SYSTEMS, AND TO 4 EQUITABLY SHARE IN THE FINANCING AND RETIREMENT OF THE DEBT OBLIGATIONS THEREOF. 5 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY 6 OF SAN BERNARDINO AS FOLLOWS: 7 SECTION 1. Recitals. 8 A. The City of San Bernardino and East Valley Water 9 District have created under a joint powers authority agreement, 10 the Highland-Delmann Heights Quality Water Supply Authority. 11 B. One of the purposes for the creation of the Authority 12 was to acquire the Southern California Water Company, Highland 13 and Delmann Water Systems. 14 C. The revenue from the operation of the Delmann Heights 15 portion of the said Southern California Water Company Systems, is 16 not sufficient to service the debt and the retirement of the 17 principal of the financing for the acquisition and reconstruction 18 of that part of the system. 19 D. The revenue from the operation of the East Highland 20 system is more than adequate to provide the necessary revenue for 21 the debt service and retirement of the principal of the financing 22 required to acquire that system. 23 E. The City and East Valley Water District have agreed to 24 blend the revenues for the acquisition of each system under the 25 administration of the Highland-Delmann Heights Quality Water 26 Supply Authority, in order that the financing for the acquisition 27 of the Highland-Delmann Water System shall be adequately financed 28 independent of any assistance from the City. 1 1 2 SECTION 2. Implementation. The City hereby declares its intention to join with East 3 Valley Water District in the acquisition and improvement of 4 Southern California Water Company, Highland-Delmann Heights Water 5 Systems by the Highland-Delmann Heights Quality Water Authority 6 and to implement that resolve within 20 days of the date of this 7 resolution by an agreement to be negotiated between the City and 8 East Valley Water District. The agreement will provide for the 9 blending of revenue from the Delmann Heights and Highland systems 10 of the Southern California Water Company in a manner that the 11 financing of the acquisition and improvement of Delmann Heights 12 will be adequately financed independent of assistance from 13 general revenues of the City. Such agreement shall include the 14 following: 15 A. All revenue from service connections shall be paid to 16 the City and District which shall such to service use revenue 17 operation and maintenance and to retire debt incurred by the any 18 Authority for financing the acquisition and improvement of the 19 Southern California Water Company Highland-Delmann Heights Water 20 Systems. In the event net revenue is inadequate to pay operation 21 and maintenance and debt retirement of either system of the 22 District or City, the other public entity shall provide the 23 shortfall revenues. 24 B. The Authority shall set water rates for said water 25 systems and that said rates shall be the same for both systems. 26 I HEREBY CERTIFY that the foregoing resolution was duly 27 adopted by the Mayor and Common Council of the City of San 28 2 1 Bernardino at a reqular meeting thereof, held on 2 the 19th 3 wit: 4 AYES: 5 day of Auqust , 1986, by the following vote, to Council Members Reilly, Marks, Quiel, Strickler 6 NAYS: None 7 ABSENT: Council Members Estrada, Hernandez, Frazier 8 9 10 11 12 ~d/?/,1{~~ 1:i ty Clerk The foregoing resolution is hereby approved this o?/4r day of 13 14 15 IIllgllRt , 1986. Mayor / of the City Pro Tempore 16 Approved as to form: 17 ////,- / / ~ rC/ // &!/~J /r/~A?~L-(-<'.- City Atforney 19 20 18 21 22 23 24 25 26 27 28 3