01-22-2002 - Three Valleys Municipal Water District VS. City of West CovinaCity. of West Covina
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MEMORANDUM
Y A GENDA
TO: Andrew G. Pasmant, City Manager
and City Council ITEM NO.' C-3i
FROM: Erin Patricia Hoppe DATE January 22, 2002
Risk Manager
SUBJECT: THREE VALLEYS MUNICIPAL WATER DISTRICT VS. CITY OF
WEST COVINA
..SUMMARY: On October 29, 2001, the City Clerk's Office received a claim for monetary loss
relating to the sale of the City of West Covina's water system, including its
interest in the Grand Avenue Pipeline, to Suburban Water Systems. The amount
of claim had not been determined at time of presentation.
BACKGROUND:
This claim arises from the sale of the City of West Covina's water system. The claimant is alleging
that the City refuses payment of the charges for additional capacity rights assessed by Three
Valleys Municipal Water District through the close of escrow.
DISCUSSION:
An investigation by the Public Works Department does not substantiate liability on the part of the
City. A review of the history and documentation relating to the sale of the water system concludes
that liability rests 'with the City of Walnut.
After a review of the investigation in this matter, staff, the City's Claims Administrator at that time,
Colen and Lee, and the City's Attorney, Roger Colvin, determined the City is not responsible for
any outstanding debt and recommend denial.
As you are aware, since all claims should be considered potential lawsuits, it is requested that all
Councilmembers refrain from making specific public comments so as not to prejudice any claim.
Specific questions should be referred to the City Attorney.
RECOMMENDATION:
It is recommended that the claim of Three Valleys Municipal Water District, filed on October 29,
2001, be denied and the claimant's attorney be so notified.
Prepared by: Reviewed & Approved by:
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Debbie Dominguez UErin Patricia Hoppe
Safety & Claims Manager Risk Manager