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RESOLUTION NO. 86-4lh .~ V~~'f
'1', 1<'
2 RESOLUTION Or THE CITY OF SAN RERNARDINO AUTHORIZING THES ~~
EXECUTION OF AN AMENDED JOINT POWERS AGREEMENT ESTABLISHING ~l" ~
3 HIGHLAND-DELMANN HEIGHTS QUALITY W~TER SUPPLY AUTHORITY., l~ L,~
" s...- " {t~"
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY ~l
5 SAN BERNARDINO AS FOLLOWS:
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SECTION 1.
The Mayor of the City of San Bernardino is hereby
7 authorized and directed to execute on behalf of said City an
8 Amended Joint Powers Agreement Establishing Highland-Delmann Heigh s
9 Quality Water Supply Authority, a copy of which is attached
]0 hereto, marked Exhibit "A" and incorporated herein by reference as
]] fully as though set forth at length.
]2 I HEREBY CERTIFY that the foregoing resolution was duly
]3 adopted by the Mayor and Common Council of the City of San
]4 Bernardino at a n ad;ourned reaular
15 the
meeting thereof, held on
8th day of
, 1986, by the following vote,
October
]6 to wit:
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AYES:
Council Members
Reilly. Hernandp-z M~rk~
Ouiel. Frazier. Strickler
NAYS:
None
ABSENT:
Council Member Estrada
~?7d'~#~/
/ City Clerk
The foregoing resolution is hereby approved this ~q~ day
( ~ "'; }',\ ~
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~''o-:/ of ~~itY/~; '~~:~ardino
October
, 1986.
Approved as to form:
27 ~I#J~/
28 City Attorney
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D. The City and District believe they can advance theJ1
health interests of the public, improve fire safety interests
and solve other problems pertaining to the Hi9hland/~~
acquiring sai System and thus further the economic development
opportunities of the area.
E. By having a joint powers authority acquire, by purchase,
exercise of eminent domain, or otherwise, the entire
Highland
System of the Southern California Water Company, City and
District can advance the health interest of the public, improve
fire safety interests, and further the economic development
opportunities of the areas served by City, District and Southern
California Water Company.
NOW, THEREFORE, City and District, for and in consider-
ation of the mutual benefits, promises and agre~m9nts set fcrt~
herein, do agree as follows:
SECTION 2. Purpose
This Agreement is made pursuant to the provisions of
Article 1, Chapter 5, Division 7, Title 1 of the Government Code
of the State of California (commencing with Section 6500)
relating to the joint exercise of powers common to public
agencies, and is made for the purpose of enabling City and
District to exercise their powers jointly in providing for the
acquisition of facilities for the production and distribution of
a water supply system,
in that area of the City known as
"Delmann Heights" and in the unincorporated portion of San
Bernardino County known as "Highland" presently served by the
Southern California Water Company.
Each of the agencies have
the powers necessary to accomplish this Agreement. The above
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mentioned purpose could be accomplished and the powers of the
various agencies exercised in the manner set forth in this
Agreement, independent of this Agreement, if necessary. The
City and District believe they can advance the health interests
of the public, improve fire safety interests and solve other
problems pertaining to the Highland System by acquiring said
System and thus further the economic development opportunities
of the area.
SECTION 3. ~
This Agreement became effective as of 1/7/85. Once the
purpose of acquiring the Highland System has been completed and
once that System has been divided between the City and the
District then this Agreement shall cease and be fully extin-
guished, either party may terminate this Agreement by g~v1~g the
other party a thirty (30) day termination notice if said pro-
jects has not been acquired or condemnation action commenced by
January 1, 1987.
SECTION 4. Authoritv
A. Creation of Authority
There is hereby created a public entity, separate and
apart form the parties hereto, to be known as the "Highland-
Delmann Heights Quality Water Supply Authority" (herein referred
to as "Authority"). The debts, liabilities and obligations of
Authority do no constitute debts, liabilities or obligations of
either City or District.
B. Duties and Authority
The Authority shall have only the authority set forth in
this amended Agreement, i.e., the power to acquire the Highland
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System. Upon an order of immediate possession and subsequent
acquisition of the Highland System, its facilities will be
divided between the District and the City according to the
analysis and plans set forth in the appraisal of Kreiger &
Stewart, Inc.
The City and District shall share proportion-
ately, according to the percentages of interest, for (1) court
costs, including witness fees; (2) appraisal fees of Kreiger &
Stewart, Inc.;
(3) eminent domain legal counsel fees and
expenses required to negotiate or pursue the condemnation action
in accordance with Section 7 of this Agreement.
All other expenses shall be borne solely by the party
incurring them and no party shall have any right, except as set
forth in this Agreement, to incur any expenses for the other.
The City cannot commit the District beyond ~h~ terms o~ the
Agreement and the District cannot commit the City.
C. Commi ssion
Authority shall be governed by a Commission composed of
five members, each serving in his individual capacity as a
member of the Commission.
The Commission shall be called the
"Highland-Delmann Heights Quality Water Commission" (hereafter
referred to as "Commission").
Membership in the Commission
shall be established as follows:
1.
The then incumbent Mayor of the City of San Ber-
nardino#i4<<h/I.dtM ~ #ad IU? qa ~
~ ~/1"nh?~~<t/A7uq ~?Z/.
The General Manager of qhe City's Water Department.
2.
3. A member of the Board of the East Valley Water
District, or his or her alternate, appointed by
that Board.
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4. The General Manager of the East Valley Water
District.
5. A member of the public selected by majority vote of
of the members.
The member who is the then incumbent Mayor and the members
who are the then serving managers of the two water departments
shall hold office indefinitely while incumbent In the office
which entitled him or her to membership and until his or her
successor is elected or appointed and qualifies. The other
members shall serve at the pleasure of the body appointing him
or her or their successors. The proper appointing authority
shall, upon making an appointment, forthwith notify the secret-
ary of the Commission of all appointments. Commissioners shall
receive no compensation but shall be entitled to reimburse~ent
of necessary and reasonable expenses incurred in the performance
of business of the Commission upon approval by the Commission.
D. Meeting of the Commission
1. Regular meetings.
The Commission shall provide for its regular,
adjourned regular and special meetings; provided, however, that
it shall hold at least quarterly regular meetings in each year
and such further meetings as the parties hereto may reasonably
request depending upon the pressure of business. The dates upon
which and the hour and place at which any regular meeting shall
be held, and the manner of calling special meetings, shall be
fixed by resolution and.a copy of such resolution shall be filed
with each of the parties hereto. The place of the regular
meetings shall be established by the Commission.
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2. Ralph M. Brown Act.
The Commission shall adopt rules for conducting Its
meetings and other business. All meetings of the Commission,
including without limitation regular, adjourned regular and
special meetings, shall be called, noticed, held and conducted
in accordance with the provisions of the Ralph M. Brown Act
(commencing with Section 54950 of the California Government
Code).
3. Minutes.
The Secretary of the Commission shall cause minutes
of regular, adjourned regular and special meetings to be kept,
and shall, as soon as possible after each meeting, cause a copy
of the minutes to be forwarded to each member of the Commission
and to the parties hereto.
4. Quorum.
Three (3) members present at a Commission meeting
shall constitute a quorum for the transaction of business,
except that a lesser number may adjourn for a lack of a quorum.
E. Officers
The Commission shall elect a President, Vice-President
and Secretary at its first meeting, and thereafter at the first
meeting held in each succeeding calendar year, the Commission
shall elect or re-elect its President, Vice President and
Secretary. In the event that the President, Vice-President or
Secretary so elected ceases to be a member of the Commission,
the resulting vac~ncy shall be filled a the next regular meeting
of the Commission held after such vacancy occurs. In the
absence or inability of the President to act, the Vice-President
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shall act as President. The President. or in his absence the
Vice-President, shall preside at and conduct all meetings of the
Commission. If required, the City Treasurer shall be and act as
Treasurer of the Authority. The Director of Administration and
Finance of the City Water Department (or other such officer as
may be performing the duties of auditor or controller of the
City's Water Department) shall be and act as Controller of the
Authority. Counsel shall be selected by the Commission, except
that the City Attorney shall be and act as the attorney for the
Authority with respect to any proceeding solely affecting the
Delmann Heights properties to be obtained, and District's
attorney shall be and act as the attorney for the Authority with
respect to any proceeding solely relating to the properties in
the Highland area. Professional and expert services, ln~luding,
without limitation, eminent domain counsel, accountants, ap-
praisers and other consultants and advisors, shall be contracted
for by the Commission, except that eminent domain counsel and
appraisers shall be selected only by unanimous consent. All
such services shall be performed for the Authority as part of
the acquisition of the particular project involved.
SECTION 5. Powers and Duties of the Authority
The Authority shall have the powers set forth in the
Recitals of this Agreement, to wit: the power to acquire,
operate and control facilities for the production and distribu-
tion of a water supply for public purposes, in order to provide
for the development of improved water supply facilities and
amenities in the areas presently served by the Southern Cali-
fornia Water Company's Highland System. Authority is authorized
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to do all acts necessary for the exercise of said common powers
for said purposes, including, but not limited to, any or all of
the following:
To make and enter into contracts; to employ agents and
employees; to acquire, manage, maintain or operate public
facilities or improvements related to the supplying of water to
the area desired to be served; to acquire property, by gift,
lease or purchase; to hold or dispose of property, by lease or
sale; to incur debts or liabilities or obligations required by
the exercise of these powers; and to sue and be sued in its own
name. Said powers shall be exercised in the manner provided in
the Joint Powers provision of the California Government Code,
and, except as expressly set forth herein, subject only to such
restrictions upon the manner of exercising such powers ~j ar3
imposed upon City in the exercise of similar powers.
SECTION 6. Fiscal Year
For the purposes of this Agreement, the term "Fiscal Year"
shall mean the period from July 1 of each year to and including
the following June 30.
SECTION 7. Disposition of Assets
Upon the termination of this Agreement, any buildings,
structures or other improvements which have been constructed,
acquired, or obtained by the Authority, by lease, purchase, or
otherwise, pursuant to this Agreement, shall vest in the public
agency which has been leasing the same from the Authority or, in
the event there has been no such lease by the Authority, to such
public agency as shall be determined appropriate by the Commis-
sion. The intent of the parties is that, prior to or upon
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termination of this Authority, City shall operate and obtain
title to the so-called "Delmann Heights" portions of the system
of the Southern California Water Company's Highland System, and
that District shall operate and obtain title to that portion of
the Southern California Water Company's Highland System lying in
the area generally known as the "Highland" area. The parties
hereto shall execute any instruments of conveyance necessary to
provide for such vesting of such property. All other property,
funds and assets of Authority shall be returned to the parties
in proportion to the contributions made by them. For purposes
of this computation, the aggregate of all monies and properties
(excepting the fair value of all services rendered) provided by
each during the entire term shall be deemed to constitute the
contribution made by each.
In determining values of respective interest of the High-
land System and the Delmann Heights System, the final appraisal
utilized by the Authority in acquiring the properties shall
establish proportional values of the two systems, and such
proportion shall be applied as between the parties to the
acquisition price or condemnation award unless the acquisition
prices or condemnation award is specifically divided through
negotiations or court award. The parties agree such proportion
shall apply to eventual disposition of the assets unless the
acquisition price or court award specifically expresses the
value of each system, in which event that proportion shall apply
to eventual disposition.
Once the Highland System has been acquired, either by
negotiation or condemnation the Authority will take immediate
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steps to transfer all the facilities located in the area
commonly known as Highland to the District and the Authority
will likewise immediately transfer all facilities in the Delmann
Heights System to the City. Once these transfers have been
completed the City shall have no responsibility for the Highland
area and the District shall have no responsibility for the
Delmann area. Both parties are free to operate their respective
portion of the acquired system as they see fit.
Section 8. Acquisition of Facilities. Lease or Sublease
and Operation of Facilities Prior to Termination of Authority
Authority shall, in pursuance of the goals of this Agree-
ment acquire necessary properties by purchase, lease or other-
wise, and Authority shall give immediate possession by agreement
or otherwise of such facilities involved to the party ~it~ln
whose area of service the properties acquired is located. City
and District shall payor reimburse Authority for all admin-
istrative and other expenses incidental to or connected with the
project. City and District shall operate and maintain the
facilities within their areas of service at its own cost and
expense and receive all revenues from such service areus from
the date of possession until termination of the Authority as
provided for herein.
SECTION 9. Assistance to Authoritv
City and District may, in appropriate circumstances:
1. Make contributions from their treasuries for the purpose
set forth herein;
2. Make advances of public funds to defray the cost of such
purposes;
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3. Make advances of public funds for such purposes. such
advances to be repaid as provided herein; or
4. Use their personnel, equipment or property in lieu of
other contributions or advances.
The
Such sums shall be paid to
provisions of Government
and disbursed by the Authority.
Code Section 6513 are hereby
incorporated into this Agreement.
SECTION 10. Accounts and Reports
If required, the Authority shall contract with a certified
public accountant or public accountant to make an annual audit
of the accounts and records of Authority and a complete written
report of such audit shall be filed annually as public records
with the County Auditor of San Bernardino County, and with City,
District and Authority. Such annual audit and written repcrt
shall comply with the requirements of Section 6505 of the
Government Code of the State of California. The annual audit
may be omitted if the Commission unanimously agrees to replace
the annual audit with an audit covering a two year period, as
permitted by Government Code Section 6505.
SECTION 11. Funds
The Treasurer of the Authority shall have custody of
Authority property and disburse Authority funds pursuant to the
accounting procedures developed in accordance with the provis-
ions of Section 6505 of the Government Code. Additionally, the
Treasurer of the Authority shall assume the duties described in
California Government Code Section ~505.5, to wit:
A. Receive and receipt for all money of Authority and place
it in the City treasury to the credit of Authority;
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B. Be respons1ble upon h1s official bond for safekeeping
and disbursement of all Authority money so held by him;
C. Pay any other sums due from Authority, from Authority
money, only upon warrants of the Controller of Authority;
D. Verify and report in writing on the first day of July,
October, January and April of each year to Authority and to City
and District, the amount of money he holds for Authority, the
amount of receipts since his last report, and the amount paid
out since his last report. The Treasurer of Authority shall
have the custody of and disburse Authority funds pursuant to the
accounting procedures developed in accordance with the provi-
sions of Section 10 hereof, and as nearly as possible in accord-
ance with normal City procedures.
The public officers (namely, the Controller and Treasurer
of Authority) herein designated as the persons responsible for
any monies of Authority are hereby also designated as respons-
ible for all other property of Authority and each of said
officers shall file an official bond in an amount to be fixed by
the Commission.
The Controller of the Authority shall draw warrants to pay
demands against the Authority when the demands have been ap-
proved by any person so authorized to approve in accordance with
the accounting provisions developed 1n accordance with the
provisions of Section 10 hereof.
SECTION 12. Notices
Notices hereunder shall be suffic1ent if delivered to: City
- City Clerk and General Manager Water Department, 300 North "D"
Street, San Bernardino, CA 92418; District - General Manager,
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East Valley Water District, 1155 Del Rosa Avenue, San
Bernardino, CA 92410; Commissioners - the address therefor on
file with the secretary; AuthorIty - Secretary of the Authority,
c/o City Clerk, City Hall, 300 North "D" Street, San Bernardino,
CA 92418.
SECTION 13. Miscellaneous
The section headings herein are for convenience only and
are not to be construed as modifying or governing the language
in the section referred to. Whenever in this Agreement any
consent or approval is required, such consent shall not be
unreasonably withheld. This Agreement is made in the State of
California under the constitution and laws of such state and is
to be so construed.
To preserve a reasonable degree of flexibility, many parts
of this Agreement are stated in general terms. It is understood
that there may be operating memorandum executed and amended from
time to time by the unanimous agreement of the parties that will
further define the rights and obligations of the parties.
SECTION 14. Successors
This agreement shall be binding upon and shall inure to the
benefit of the successors of the parties hereto.
SECTION 15. Severabilitv
Should any part, term, or provision of this Agreement be
determined by the courts to be illegal or in conflict with any
law of the State of California, or otherwise is rendered unen-
forceable of ineffectual,. the validity of the remaining portions
shall not be affected thereby.
IN WITNESS WHEREOF, the parties hereto have caused this
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Agreement to be executed and attested by their proper officials
thereunto duly authorized, their official seals to be hereto
affixed, effective as of the date set forth below.
CITY OF SAN BERNARDINO
ATTEST:
By:
Mayor
City Clerk
Approved as to form:
Effective Date:
City Attorney
EAST VALLEY WATER DISTRICT
ATTEST:
By:
Chairman of the Board
Secretary of Board
Approved as to form:
Effective Date:
Attorney for District
ATTEST:
CITY OF SAN BERNARDINO
BOARD OF WATER COMMISSIONERS
By:
Deputy City Clerk &
Ex-Officio Secretary
Presi dent
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.C I T Y
OFQAN BERQR
INTEROFFICE MEMORANDUM
8610-1101
DIN 0
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TO:
Honorable Mayor and Common Council
FROM:
Herbert B. Wessel, General Manager
SUBJECT: Petition to Modify Southern California Water
Company's Rate Increase
DATE:
October 8, 1986
(6856)
COPIES:
-------------------------------------------------------------
BACKGROUND INFORMAIlQH
Normally the Courts will approve the purchase of a private
utility based upon an appraisal which accurately establishes
the company's "Capitalized Earnings". The Sun Newspaper of
October 7, 1986 carried an article related to the State of
California Public Utilities Commission approving a rate
increase for the Southern California Water Company at six of
their satellite operations, one of the six being the San
Bernardino operation. This would be the Delmann Heights and
Highland areas. (See copy of article attached).
The approved rate represents an increase each year for the
next three (3) years. After a discussion with Councilman
Ralph Hernandez, he personally called the President of the
P.U.C. re the San Bernardino rate increase. The P.U.C.
stated that a petition could be filed in writing for either a
re-hearing or modification.
It is recommended that the Mayor and Council authorize their
representatives on the Delmann Heights-Highland Water Author-
ity to request the Authority's Special Legal Counsel to file
a "Petition for Modification" removing or eliminating San
Bernardino from the approved rate increase. Said petition
would be filed with Mary Carios, Chief Administrative Law
Judge. This should prevent any possible increase in the
Capitalized Earnings. The cost of this proposed action would
be shared by the Authority members.
o
MEMORANDUMP 8610-1101 0
Modify Southern California Water
INTEROFFIC"E
Petition to
Increase
October 8, 1986
Page 2
Authority members
file a
Respectfully submitted,
d~~L
Herbert B. Wessel
General Manager
HBW:mka
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Water
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Company's Rate
to request the
"Petition for
of an increased
Company's San
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,":yy OF SAN BERNARDINO
Co. ,...
---.) ( )
'"./ ...
- REQUEST FOR COUNCIL ACTION
:~ )
/....
"I.'"
"'~:1J: Counci 1m an Hernandez
Subject: Water Rate Increase
Df-in: Council Office
Jete: October 8, 1986
Synopsis of Previous Council action: None
Recommended motion: To direct the City Water Department to request a petition
~. for modification of increased water rates from the Public Utilities
Commission and take any and all measures to stop the latest rate
increase in water rates for the City of San Bernardino.
~~~~
Contact person:
Phil Arvizo
Phone: 383-5168
Supporting data attached: News clippinq
Ward: All
FUNDING REQUIREMENTS:
Amount:
Sou rce:
Finance:
Council Notes: Phone contact with PUC President at 4 :30pm. 10-7-86 indicates thp-
Commission could snpporr this n'qllP-~r_ pptirion ro hp ~pnr ro MAry
Carlos.Chief Admin Law Jud9P- (41S1 SS7-022S
7 &.0262
NEW BUSINESS
Agenda Item No.
:Ojr"J$llJ O~ed the possi-
;h1.rJ.g U u:llOrJi part
,'!' In the mpany and
galnst a background of
r.roubles at the parent of
"D'S largest steelmaker, a
,[ u.s. corporate might.
steel....orkers have not
since Aug, 1 In a bitter
spute caused partly by a
n the American steel ID.
At the same time, USX's
'0 Oil Co, unit has suffered
from declining oil prices,
Jcahn, . r-;ew York Investor
wbo specializes in takeovers, said
in a filing with the Securities and
Exchange Commission that he
:>Gal Water Rate Increase
.,
..
Barstow
Ave. usage: 3,095 cubic teet
Present bill: $17.33
Authorized: $17.70
Marongo
Ave. usage: 978 cubic feet
Present bill: $43.42
Authorized: $45.81
Victorvllle .
Ave. usage:1,391 cubic ieel
Presenl bill: $24.86
Authorized: $25.19
.......-.._........'-',-.-...-..
.......-....,.~,.....:..... ...-
San Bernardino
Ave, usage: 2,054 cubic feel
Presenl bill: $20.82
Authorized: $21.50
".;,.:"",.:..,.,.- .:;~:,;;::~::~::
Pomona
Ave, usage: 3,276 cubic feel
Presenl bill: $27.87
Authorlzed:'$28.57
15 20 25 30
Percent Incre888
1inority' engineer
~~2;~~~~~~:!'
respective advisers can proceed
with the preparation of definitive
agreements COI' '''~g customary
representatlonSl"'rms and condi-
tions;' Icahn wrote ID the letter.
He wrote that if USX accepted
the offer, lcahn would attempt to
win contract concessions from Its
steelworkers In exchange for a
part ownership of the company or
profit-sharing,
Such arrangements, he "Tote,
would make USX "and the do-
mestic steel industry more com-
By BARBARA DETERS
Sun Business Writer
35
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r::;ffl~c;.C~' '"
~~/;- f<~':~1~f;-c :~: :<~ ". i'
.. erta D Y, ClO
talldng poinl But It's all supposi-
tion, wbat be', really go)~ to,do,"
GIbbons said. ,I . . .
Many Wall Street ana'i~ts have
said USX's stock Is undervalued at
Its current level In the mJd~
Last month, USX said It would stu-
dy restructuring steps aimed ,It
boosting Its stock value. . ;'
lcahn, wbo descrIbed his offer
as friendly, told the USX board lb'
the letter that It had until Oct. 22
to respond. ' :;
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