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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: Mark Weinberg, Interim City
Manager ,
Subject: RESOLUTION OF THE MA VOR
AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AUTHORIZING
THE EXECUTION OF AN AGREEMENT
WITH THE SAN BERNARDINO
MUNICIPAL WATER DEPARTMENT FOR
THE RESALE OF SEWER CAPACITY
RIGHTS.
Dept: City Manager's Office
Date: March 16th, 2009
Council Meeting Date: April 6th, 2009
Synopsis of Previous Council Action:
None
Recommended motion:
Adopt Resolution.
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Sign re
, Contact person: Catherine Pritchett, Management Analyst I Phone: 5122
Supporting data attached: Staff Report, Agreement Ward: All
FUNDING REQUIREMENTS: Amount: One time revenue of $238,407 to the
General Fund
Source:
Finance:
Council Notes:
Agenda Item No. J 1-
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STAFF REPORT
Subiect:
Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the
execution of an agreement with the San Bernardino Municipal Water Department for the resale
of sewer capacity rights.
Back2round:
During the 1970's, the City transferred operational oversight of the Water Reclamation facility to
the Water Department. In the early 1980's the reclamation facility reached its daily treatment
capacity. In order to generate enough funding for an expansion to the facility, the Board of Water
Commissioners entered into purchase agreements with local agencies to sell sewer capacity
rights.
In 1985, the City entered into an agreement to purchase 700 sewer capacity rights for $861,000,
or $1,230 per unit (attached). During the past 25 years, the City has utilized a large portion of .
those rights to benefit local development, including the police station, office space at the City
yard, and improvements to two City fire stations. The City has 105.49 sewer capacity rights
remaining. The 1985 Purchase Agreement allowed for the resale of unused rights from the City
to the Water Board provided no rights could be returned for resale before July I, 1985, and that
all returns,made after July I, 1989 would be repurchased by the Water Department for $2,260
per unit.
In the City Manager's Budget Strategy, adopted by the Mayor and Common Council on
February 17,2008, staff recommended reselling the City's remaining sewer capacity rights back
to the Water Department. Given the financial situation the City is currently facing, the Board of
Water Commissioners has offered to repurchase the City's remaining capacity rights for $2,260
per unit. This action would result in a one time net increase in revenue of $238,407 to the
General Fund.
Financial imoact:
Net additional revenue of $238,407 to the General Fund. This revenue was already anticipated in
the actions approved during the mid-year budget process in February 2009,
Recommendation:
Adopt Resolution.
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RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH
THE SAN BERNARDINO MUNICIPAL WATER DEPARTMENT FOR THE RESALE
OF SEWER CAPACITY RIGHTS.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The City Manager of the City of San Bernardino is hereby authorized
and directed to execute on behalf of said City an Agreement with the San Bernardino
Municipal Water Department for the resale of sewer capacity rights, a copy of which is
attached hereto, marked Exhibit "A" and incorporated herein by reference as fully as though set
forth at length.
SECTION 2. The authorization to execute the above referenced agreement is
rescinded if the parties to the agreement fail to execute it within sixty (60) days of the adoption
of this resolution.
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH
THE SAN BERNARDINO MUNICIPAL WATER DEPARTMENT FOR THE RESALE
OF SEWER CAPACITY RIGHTS.
I HEREBY CERTIFY that the foregoing resolution was duly adopted by the
Mayor and Common Council of the City of San Bernardino at a
meeting
thereof, held on the
day of
, 2009, by the following vote to-wit:
Council Members:
AYES
NAYS
ABSTAIN
ABSENT
ESTRADA
BAXTER
BRINKER
SHORETT
KELLEY
JOHNSON
MCCAMMACK
City Clerk
The foregoing resolution is hereby approved this
day of
2009.
Approved as to form:
Patrick J. Morris, Mayor
City of San Bernardino
JAMES F. PENMAN,
City Attorney
By:
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CITY OF SAN BERNARDINO
MUNICIPAL WATER DEPARTMENT
BOARD OF WATER COMMISSIONERS
STACEY R. ALDST ADT
0elIeraI Manaser
ROBIN L. OHAMA
Deputy 0elIeraI Manaser
MATTHEW H. LITCHFIELD, P,E,
Dinlctor. Water Uti6ty
JOlIN A. CLAUS
Director, Water Reclamation
DON SHACKELfORD
Director. Finance
VALERIE HOUSEL
Director, Environmenl8l &
Regula10ly Compliaol:e
TONI CALLICOTT
President
Commissioners
B, WARREN COCKE
NORINE I. MILLER
LOUIS A, FERNANDEZ
WAYNE R, HENDRIX
"Trusted, Quality Serllice since 1905"
Agre>-..t: t:o Purcha.. S.-z Capacit:y .Right:.
The City of San Bernardino Board of Water Commissioners (Board) through
the City of San Bernardino Municipal Water Department (Department) hereby
agrees to purchase all rights, title and interest for 105.49 sewer
capacity rights from the City of San Bernardino (City) for a total sum of
two hundred thirty-eight thousand four hundred seven dollars and forty
cents ($238,407.40). Upon receipt of the said payment from the Department,
the Board and the City furthermore agree to terminate the Reservation
OAgreement No. 100001 for wastewater treatment plant capacity rights
entered into as of August 31, 1984 . The Board and the City acknowledge
and agree that each shall not be held liable for any legal or other
consequences to the other as a result of this agreement.
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City of San Bernardino
Date:
By:
Mark Weinberg
Title:
Interim City Manager
Purchaser:
San Bernardino Municipal Water Department
Date:
By:
Stacey R. Aldstadt
Title:
General Manager
300 North "0" Street, San Bernardino, California 92418 P.O. Box 710, 92402 Phone: (909) 384-5141
FACSIMILE NUMBERS: Adminisllation: (909) 384-5215 Enllinceriog: (909) 384-5532 Customer Service: (909) 384-7211
Corporate Yards: (909) 384-5260 Water Reclamation Plant: (909) 384-525g