2000 AGN MAY 30 I02 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT FOR PUBLIC HEARING OF MAY 30,2000 TO: Honorable Mayor Pro -Tempore and City Council Members APPROVAL: Henry Garcia, City Manag FROM: Al Holliman, Finance Directo Tom Clarke, Utility Directog�p� SUBJECT: Proposed Formation of the Colton Public Utility Authority and Changes in Customer Rates for Wastewater Treatment Services DATE:: May 24, 2000 BACK.GROUND On March 21, 2000 the City Council approved an emergency change order to Americon Constructors for a mandated capacity increase at the Wastewater Treatment Facility. The estimated amount of bond financing necessary to fund the improvements is $4 million. It was disclosed during the March 21 " meeting that the necessary monthly residential rate increase would be $2 to help pay the new debt service costs as a result of the emergency improvements. This is in addition to the previously disclosed $4 monthly increase as a result of debt service costs for other mandated capital improvements already underway. Essentially, Colton's residential customers were faced with a $6 monthly increase in Wastewater Treatment rates, to take effect on July 1, 200 1. The City Council directed staff to explore every feasible opportunity to enact Wastewater rate increases at the lowest possible amount. As a result of Council direction and staffs research, a relatively new legal structure was discovered for Water and Wastewater operations, which appears to have significant financial benefits for Water and Wastewater customers as well as other activities of the City. DISCUSSION/ANALYSIS The proposed structure is a joint powers authority (JPA) which has already been implemented in four California Cities with many others in process. The name of the proposed JPA would be the Colton Public Utility Authority. The JPA would be comprised of the City and the Redevelopment Agency. The governing body would still be the City Council acting as the JPA's Board of Directors. Itern # 2