1997 AGN JUL 21 I 02 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT For City Council Meeting of�.� 11) lgg7 TO: HONORABLE MAYOR AND CITY COUNCIL APPROVAL: GRACIE FERNANDEZ HARMON, ACTING CITY MANAGE FROM: THOMAS K. CLARKE, UTILITY DIRECTOR'L ^—� SUBJECT: APPROVAL OF WATER SALE AGREEMENT BETWEEN THE CITY AND RECHE CANYON MUTUAL WATER COMPANY DATE: JULY 7, 1997 BACKGROUND Approximately a year ago, the Reche Canyon Mutual Water Company (Company) approached the City regarding an emergency water connection so that they could have a backup water source to fill their water reservoir to avoid potential problems with adequate supply during the fire season. Following that initial request, the two agencies have undert4n a number of steps to conclude this action. First, the Company had to petition and be annexed to the San Bernardino Valley Municipal Water District in order to allow an interconnection with an Agency affiliate. Second, Water Department staff performed the cost analysis of the interconnection to determine just and reasonable rates. Next, the Company had to agree to the proposed terms and rates being developed by the City. Finally, the terms and conditions were outlined and taken before the Utilities Commission for review and concurrence. DISCUSSION/ANALYSIS The City of Colton is the nearest source of water for the Company. It does not have the financial ability to put in a new well or the infrastructure to support serves approximately pport it. The Company pproximatel 30 customers. Without some type of additional water supply, the Company runs the risk of inadequate storage in the case of a fire in, and adjacent to, the water service territory of the Company. it is for these reasons, it approached the City. After several months of negotiations, the City and the Company agreed in principal to the major terms and conditions for water service. These can be more specifically described as follows: 1. The City will secure a contractor to do the tap and provide the service lateral to the four -inch meter box located in the City right-of-way at a cost not to exceed $,6,500; Page 1 of 2 Item No.