2000 JUL 18 REG MIN - Laserfiche WebLink

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processing. The rate included the pipelines, the maintenance and the construction in Colton only. The City of Grand Terrace owned and maintained its own lines. A portion of its rate included the City of Colton's processing costs plus whatever the City charged its residents. Director Clarke said that the City of Colton conferred with the City of Grand Terrace's city officials and did negotiate within the framework of existing contract. He explained that the Grand Terrace contract was tied to specific units within the wastewater treatment facility. He suggested that when those units come out of service, that a new contract with a new rate could be reestablished. To expedite this matter, Grand Terrace agreed to pay 20% of the additional costs of the expansion. The Twenty- percent related to their percentage of Units 1 and 2 and not necessarily the total plant build -out. Director Clarke declared that the rate arrived at with Grand Terrace was extremely fair. PUBLIC COMMENT (Continued) Mark Glutglueck and an unidentified speaker inquired about bond counsel and conflict of interest. Finance Director Holliman and Bond Counsel Francis Baum responded. MOTION/VOTE: Redevelopment Agency: Motion/second by Members Cook/Grimsby to adopt and approve REDEVELOPMENT RESOLUTION NO. 763, authorizing the creation of the Colton Utility Authority, and taking certain other actions in connection therewith, carried upon unanimous vote. City Council: Motion/second by CM Chastain/Cook to adopt and approve CITY COUNCIL RESOLUTION NO. R-55-00, authorizing the creation of the Colton Utility Authority; ratifying the solicitation of a proposal for the lease of the city water and wastewater systems; and taking certain other actions in connection therewith, carried upon unanimous vote. Colton Utility Authority: City Attorney Carvalho advised that following formal creation of the Colton Utility Authority that the next step was to adopt bylaws. Motion/second: by Members Grimsby/DeLaRosa to adopt and approve COLTON UTILITY AUTHORITY RESOLUTION NO. CUA 2000-1, approving and adopting its bylaws and authorizing certain other actions in connection therewith, carried upon unanimous vote. City Treasurer Mike Williams addressed inquiry about the $1.5 million to be transferred from the Water and Wastewater authority: The sum of $300,000 is to be used for a rate stabilization ftind for the Wastewater Utility, that is part of the financing. He explained that the payment was made up front because of the covenants in the bond issue. Under current practice, he said that transfers were made monthly to the general ftind. However, he noted that once the bond issue was done, the City was subordinating the general fund's right to receive those payments until after the following had been paid: Maintenance and operation, debt service and all capital things. He City Council Mins July 18, 2000 4