1997 AGN JUL 15 I09 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF JULY 15, 1997 SUBJECT: APPROVAL OF WATER SALE AGREEMENT BETWEEN THE CITY AND RECHE CANYON MUTUAL WATER COMPANY 2. The capital improvement fee has been settled on which would be appropriate for a two-inch water service, plus an amount equal to the monthly service charge for a two-inch service for the first year of the service. These two amounts combined will be $633.62. Thereafter during any month of interconnection, the monthly minimum would be equal to the monthly service charge (currently $25.29); and, 3. The City has evaluated the appropriate pricing for the water that would be billed through the meter. The calculation indicates a rate not to exceed $.55 per ccf would be an appropriate charge for water. This portion of the rate would be subject to change according to our production costs and any other changes in operation of the water system. This matter came before the Utilities Commission on three separate occasions for discussion and recommendation. At their June 9, 1997, regular meeting, the Commission approved the proposed agreement and authorized staff to forward the matter to the City Council. ALTERNATIVES The City could opt to not serve the Company. However, this places the customers of the Company in some degree of jeopardy if a fire occurs and water supplies are insufficient for control and suppression. Another option could be to only serve the Company on a limited basis so that no additional peak demand is placed on the City's water system. Since the Utilities Commission preferred to assess fees at the stated level, this option has somewhat been eliminated. FINANCIAL IMPACT All of the appropriate fees are being paid to the City for the interconnection. Water will be taken on an "as needed" basis by the Company. The City will realize some revenues,: but that will be a function of how much water the Company takes. It is not the intent of the Company, nor will it become the obligation of the City, to enter into a firm service arrangement for the domestic needs of the customers of the Company. ENVIRONMENTAL IMPACT There are no environmental impacts as a result of this action. RECOMMENDATION Staff recommends that the City Council approve the consummation of an interconnection agreement between the City and Reche Canyon Mutual Water F Company for the sale of emergency back-up water. Page 2 of 2 Item No. a