Resolution - 9424RESOLUTION NO. 9424
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA, CALIFORNIA, REGARDING DISTRIBUTION
OF FUNDS RETURNED TO UPPER SAN GABRIEL VALLEY
MUNICIPAL WATER DISTRICT BY METROPOLITAN WATER
is
DISTRICT OF SOUTHERN CALIFORNIA.
WHEREAS, the City of West Covina ("City")'purchases the portion of
imported water to supply its service area from Upper San Gabriel Valley Municipal
Water District ("Upper District"), 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 Upper District
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 Upper District the sum of $619,221.00 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 Upper District on imported water varies substantially, with some supplying a large
portion of their needs from local groundwater and others, such as the City being almost
entirely dependent upon imported water from Upper District, there is a large disparity in
the amount of revenue generated by Metropolitan within the various Upper District,
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 Upper District to distribute the entire $619,221.00 refund from Metropolitan Water
District of Southern California to Upper District 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 Upper District would result in
customers of agencies, which are substantially dependent on imported water, bearing a
disproportionate share of the cost of such use.
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SECTION 2. Statement of Intent. The City Council of the City of West
Covina hereby expresses its intent that, if Upper District 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 Upper District. The City Council is
hereby directed to forward a copy of this Resolution'to the Board of Directors of Upper
• District, along with a letter requesting or his authorized agent that Upper District adopt
the distribution option urged herein, and that the City Representative may attend
meetings of the Upper District Board of Directors to support the City's position
expressed herein.
J
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 Upper District.
APPROVED AND ADOPTED this 18th day of March , 1997
ATTEST
Ct_1 i U _
`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
City Atto ey
Herfert, Howard, Melendez, Touhey, Wong
None
None
City Clerl�
2
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