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: CITY ~ SAN BERNARDINOO RE~EST FOR COUNCIL ''jTION
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From:
Kenneth J. Herrlerson, Director <\EC'O.-lW!J.i&!1~. OFiJ?EUWlN JlEJ:GIf1'S WATER SYB'l'Dl
Community Developnent 'SSiJ A.'JG l'~ ' j ~,u
August 15, 1990
Dept:
Date:
Synopsis of Previous Council action:
'Ibis matter was brought to the attention of the Mayor an:l 0..... 11'\ O::Alooil on
several occasions. 'Ihe matter was continued three (3) times an:l was eventually
referred to the City Admi.ni.strator for resolution.
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Recommended motion:
(1) ~ nIE FIRST OF FIVE (5) ANNUAL REIMBJ1lSEMENrS '10 nIE WATER IEPARI'-
Mml' OF PAYMmI'S 'IOl'ALLING $399,168 MAIE '10 ~ nIE DEIMANN HEIGHI'S
WATER SYSTEM.
(2) DIRECl' nIE CITY CIERI{ '10 PlACE ITEM REXWlDIlC AO;JJISITICN OF DEIMANN
HEIGHI'S WATER SYSTEM CN CXH<<:'fi CXXJNCIL AGIlMlll. cnlCDRRENl' Wl'lH nIE ANNUAL
CDB:; RlBLIC HFARING FUR nIE YEARS 1991-1993.
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Phone:
5065
Supporting data attached:
Ward:
6
FUNDING REQUIREMENTS:
Amount:
$399,168
Source: (Acct. No.) 121-544-57735
(Acct. DescriPtion) (DB:; Awropriated Resel:ve Acct.
Finance:
Council Notes:
75-0262
Agenda Item No.5' - /
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.'~ITY.F SAN BERNARDINOO RE~EST FOR COUNCIL ryTION
STAFF REPORT
In 1984, the Cc.Imlv:m Council reqJeSted the M..mi.cipal Water Board to
acxpire the private water system Wich was servin;J the Dellnann
Heights area. '!he reason for the Council's request was poor quality
of water service ani the serioosly deteriorated con:tition of the
water mains ani related system infrastnIcture.
At the time the request was made, the City infomally agreed with
the Water Deparbnent to pay the acquisition ocst cut of future
C"ronrmnti.ty Develcpnent Block Grant (c::ooo) funds. '!he water system
was acquired through eminent daoain in Wich the East Valley Water
District also participated by corrlemn:in;J the Southem California
Water System in the Highlani area.
'!he corxlemnation suit has been canpleted ani the acquisition ocst
for the entire system is $5,465,000. '!he City's share of this ocst
is $399,268. nus am:lUl1t can be retired fNer a period of five (5)
years at an interest rate of 7.5%.
Because the City c:anoot a~ropriate C'nmInti.ty Devel~.t funds not
yet authorized ani for Wich no grant agreement exists, it is ag;>ro-
priate to allocate funds annually for this J;mpOSe. staff has re-
viewed the federal regulations ani has deteJ:mi.ned that the project
is eligible for COB:; financial assistance. '!he initial payment can
be made fran the COB:; AwL<Ji'Liated Reserve 1\ocamt, with Sl~irq
payments to be made directly !ran the annual c::ooo entitlement.
This itsn was Dlaced on the _]_"'1 aaen&a of the Mawr and
O......n CCII.mCi.l at the reauest of the City lllininistrator.
I n.................'ld adoption of the fo:m1lXltions.
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ImVlab/4022
August 15, 1990
75-0264
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