Laserfiche WebLink
AGENDA ITEM NO K g <br />COUNCIL MEETING OF 913113 <br />REQUEST FOR COUNCIL ACTION <br />SUBJECT: RESOLUTION NO. 7047 AUTHORIZATION TO APPROVE AND <br />EXECUTE AGREEMENTS TO EXCHANGE ENTITLEMENT WATER <br />WITHOUT PRIOR COUNCIL APPROVAL <br />MOTION: <br />1 move to approve Resolution No 7047 <br />RECOMMENDATION. <br />Staff recommends the City Council adopt Resolution No. 7047 authorizing the Mayor or <br />any member of the City Council to approve and execute agreements for water exchange <br />entitlements for water received from the Santa Ana River and Mill Creek without prior <br />Council approval. <br />DISCUSSION <br />The City derives the majority of its water supply from three primary sources: the Santa Ana <br />River, Mill Creek, and groundwater wells. The right to use surface water sources has been <br />acquired by the City through both direct ownership of water rights and through the <br />ownership of mutual water company stock. <br />In the 1960s and 1990s the City entered into agreements with four local mutual water <br />companies to allow the City to receive water from these companies on behalf of its <br />shareholders. The water received is delivered to the City's Hinckley surface water <br />treatment plant, and then delivered to each share holder As part of the agreement the <br />shareholders are required to pay all assessments and delivery charges. To complete the <br />transaction, each share holder must sign a companion agreement with the City which <br />allows them to operate under the master agreement between the City and each of the four <br />mutual water companies. <br />This arrangement allows the City to minimize its expenses by not having to pay increased <br />assessments on water company stock owned by the City to make costly repairs to their <br />aging systems. In addition, all unused shareholder entitlement water is delivered to the <br />City at a significantly reduced cost. Because of this, the City receives significantly more <br />water then it delivers to the water company shareholders. <br />Currently the City has agreements with approximately 150 water company shareholders to <br />receive this water Each year staff receives approximately six customer requests to <br />transfer ownership from one customer to another, or add shares to their account. <br />Recently, City staff has been contacted by two water company shareholders requesting to <br />add shares to their agreements and execute new ones. Because these agreements <br />