2000 MAY 30 SPE MIN - Laserfiche WebLink

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MOTION/VOTE: After hearing public comment, on motion/second by CM Sanders/Chastain, the Public Hearing was terminated. Motion carried with Mayor Pro Tempore Bennett absent. Finance Director Holliman reported that the cities of El Monte, Adelanto, Needles and Pico Rivera had established JPAs. He said that after approval, this year, of a $4 million change order for a mandated capacity increase at the wastewater treatment facility, City Council directed staff to research avenues on lowering the proposed rate increase and Staff suggested the formation of a joint powers authority (JPA). He stated that two legal entities were necessary for the formation of the JPA, the City Council and the Redevelopment Agency, the only other legal entity available to form this body. He emphasized that the JPA would not change the management of the funds, the employee status or the advisory role of the Utilities Commission. The JPA was expected to solidify and formalize the relationship between water and wastewater fund and the general fund. He explained that the present administrative transfers (franchise and in lieu taxes) to the general fund would be substituted with a lease payment, based on the value of the enterprises. Staff calculated that the lease payment would be $400,000 a year less the present transfers so that potential rates, per resident, would be $3.20 a month instead of $6.00 a month. Utility Director Clarke highlighted the fiscal aspect of the JPA and noted that the ratepayers increase would cover the debt service to be incurred, which he said was significant. He supported the fact that the JPA process would not affect the operation of the water/wastewater division, except to reduce the revenue requirements for the ratepayers, which would be an ongoing benefit for the citizens of Colton. MOTION/VOTE: Motion by CM Sanders, seconded by CM Chastain, to direct staff to (1) prepare a resolution to adopt the wastewater rates as presented in the financial projections; (2) prepare the necessary documents to proceed with the sale of Wastewater Revenue Bonds to fund the construction of treatment facilities; and, (3) prepare the necessary documents for the formation of the Joint Powers Authority governing the Water and Wastewater Divisions of the Utility Department including the retention of appropriate consultants to perform the required valuation/appraisal of the assets. Further, when the agenda report is returned to City Council, Staff was directed to remove inconclusive statements and put clear accounting structure into place that solidifies the Joint Powers and to have a degree of certainty regarding rates. Also, Staff was directed to include, in said report, a synopsis of the four cities identified as having JPAs. Finally, the City Attorney was directed to provide a legal summary on the Joint Powers Authority. Motion carried with Mayor Pro Tempore Bennett absent. ADJOURNMENT: At 7:18 P. M., with consensus of the City Council, Chairperson Cook adjourned the Special Meeting. _ WEkREStAAS.DZEL-GZADC&1 4fleputy City Clerk CC Spec Mtg May 30, 2000 3