Resolution - 9423I
RESOLUTION NO. 9423
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA, CALIFORNIA, REGARDING DISTRIBUTION
OF FUNDS RETURNED TO THREE VALLEYS MUNICIPAL
WATER DISTRICT BY METROPOLITAN WATER DISTRICT
• OF SOUTHERN CALIFORNIA.
WHEREAS, the City of West Covina ("City") purchases the portion of
imported water to supply its service area from Walnut Valley Water District via Three
Valleys Municipal Water District ("Three Valleys"), which is a member agency of the
Metropolitan Water District of Southern California ("Metropolitan"), which imports water
from the State Water Project and the Colorado River to Southern California; and
WHEREAS, .Metropolitan imposes water rates, connection maintenance
charges, and readiness -to -serve charges which are passed through by Three Valleys
and paid by water users and property owners within the City's service area in the form
of water rates and standby charge assessments on property; and
WHEREAS, Metropolitan recently declared a surplus of revenue over
costs for fiscal year 1995-96 and determined to make a refund of surplus water
revenues, readiness -to -serve charges and connection maintenance charges to its
member agencies, and has refunded to Three Valleys the sum of $2,784,925.00 as its
proportionate share of said surplus; and
WHEREAS, the Council of the City of West Covina believes that because
the fees and charges generating the surplus were paid by the retail users of imported
water, the monies refunded by Metropolitan should be passed through to the retail
owner in proportion to their contribution; and
WHEREAS, because the dependence of the various retail water providers
within Three Valleys on imported water varies substantially, with some supplying a large
portion of their needs from local groundwater and others, such as City being almost
entirely dependent upon imported water from Three Valleys, there is a large disparity in
the amount of revenue generated by Metropolitan within the various Three Valleys retail
agencies, and that disparity should be reflected in the amounts returned to the retail
users within the various retail agencies.
NOW, THEREFORE, be it resolved that the City Council of the City of
West Covina hereby:
SECTION 1. Distribution of Metropolitan Refund to Retail Agencies. City
urges Three Valleys Municipal Water District to distribute the entire $2,784,925.00
refund from Metropolitan Water District of Southern California to Three Valleys' retail
agencies in proportion to the amount of Metropolitan revenues generated from each
such retail agency during the 1995-96 fiscal year from water sales, standby charges,
and connection maintenance charges. The City maintains that the distribution of said
refund, based upon 1995-96 Metropolitan revenues, is the most equitable way to
distribute the refund to ensure that the water users who paid the fees and charges
• which generated the surplus receive the benefit of the refund. Any other use of said
refund by Three Valleys would result in customers of agencies, which are substantially
dependent on imported water, bearing a disproportionate share of the cost of such use.
97-102 3vallys.doc
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SECTION 2. Statement of Intent. The City Council of the City of West
Covina hereby expresses its intent that, if Three valleys determines to distribute the
Metropolitan refund to the retail agencies as urged herein, City would use its share of
the refund to benefit the retail customers who contributed to the Metropolitan surplus.
SECTION 3. Communication to Three Valleys. The City Council is
hereby directed to forward a copy of this Resolution to the Board of Directors of Three
• Valleys Municipal Water District, along with a letter requesting that Three Valleys adopt
the distribution option urged herein, and that the City Representative may attend
meetings of the Three Valleys Board of Directors to support the City's position
expressed herein.
•
SECTION 4. The City Clerk shall certify to the adoption of this resolution
and shall cause a certified copy thereof to be mailed to the Three Valleys.
APPROVED AND ADOPTED this 18th day of tlarch , 1997
ATTEST:
--,-.City Clerk
I HEREBY, CERTIFY that the foregoing resolution was duly adopted by the City Council
of West Covina at a regular meeting thereof held on the 18th day of March
1997, by the following vote of Council:
AYES: COUNCILMEMBERS
NOES: COUNCILMEMBERS
ABSENT: COUNCILMEMBERS
APPROVED AS TO FORM
Herfert, Howard, Helendez, Touhey, Wong
None
None
Co�CQ�XQm.` —
City Clerk'
97-102 3vallys.doc