HomeMy WebLinkAboutResolution 2760 N.C.S. 06/05/1961 RESOLUTION NO. 2760 N.C. S.
RESOLUTION CF .POLICY .REGARDING THE PETALUMA
WA tl. °DEPARTMENT
INTRODUCED BY COUNCILMAN �i�_r_,PCLI "� .'�, and
SECONDED BY COUNCILMAN 111/GZ'G /LGL at a
regular meeting of, the City Council of the City of Pe altfma on the 5th day of
June „ 1961.
WHEREAS the City of Petaluma purchased on September 1, 1959, the facilities
of the California Water Service Company in the Petaluma Area from funds devised
from the sale of Water Revenue Bonds; and
WHEREAS on the 29th day of June, 1959, the City Council passed Resolution
No, 2250 N. C. S. , which resolution sdts forth the terms of the contract between the
bond holder and the City and the manner in which the revenues obtained from the
operation of the water department shall be dispersed and provides that surplus funds,
as defined in Resolution No. 2260 N.,C, S. , may be placed in the general fund of the
City; and
WHEREAS the water system was purchased by the City for the reason the
City was better able economically to provide further sources of water by 'means of
contract for a supply from the Sonoma County Flood Control and Water Conservation
District, and the City believed by its municipal operation of the Water Department
it could put into effect in the future a reduction or reductions from the water rate
existing at the time of acquisition; and
WHEREAS the City of Petaluma has executed a contract with the Sonoma
County Flood Control and 'Water Conservation District for water from the Coyote
Darn complex and to purchase upwards of 4, 500 acre feet of water per year and
this type of contract was deemed economically feasible by the financial consulting
firm of Stone and Youngberg in its report submitted in 1959; and
WHEREAS Ray Layton and Associates, Engineers, submitted on the
31st of December,. 1959, a report, in detail, on the condition of the existing water
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system and in this report outlined a comprehensive capital improvement program
designed to give the customers of`the Petaluma Water Department the best possible
service in an efficient and economical manner and as this report has projected the
population growth of the area and correlated this growth with the needs of the system
to meet growth and further has anticipated in considerable detail the capital expendi-
tures and maintenance.program needed to improve the source of supply and delivery
of the product this Council finds that the anticipated surplus of the Water Department
should be committed for some time to come to the program of the report; and
WHEREAS, the Sonoma.County Flood Control and Water Conservation
District has received bids for the construction of the Petaluma, Aqueduct and has
sold the necessary bonds; and
WHEREAS, this Council of the City of Petaluma finds it appropriate
and necessary to set forth certain matters as an expression of,intention of policy
in matters relating to the operation of the Water Department and other,departments
of the City.
NOW, THEREFORE BE IT RESOLVED that the Council of the City
of Petaluma declares that it is not now, nor in the future its intention to appro-
priate surplus revenues of the Petaluma Water Department for general municipal
purposes, but will reserve the same for capital iinprovetnents to the Water system
so that the recommendations of the Layton Report may be expeditiously carried
out unless this Council in its legislative discretion finds that a general municipal
emergency overrides the needs of the Water Department., 'If an overriding need
for diversion of surplus water department funds (earnings) appears to exist then,
and in that event, the Council expresses its intention, prior to appropriating such
funds, to. first communicate to the Water Commission and its advisors detailed
reasons for the need and a request for an opinion on the matter from the Water
Commission and its advisors.
BE IT FURTHER RESOLVED it is the intention of the Council to ex-
amine annually the status of the surplus funds, if any there be, of the Water
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Department in order to deter-mine if‘a reduction in water rates is economically
feasible and justified under the conditions then and there existing or expected and
predicted to exist in the future.
BE IT FURTHER RESOLVED that it is not the intention of the Council
to incorporate or merge the Water Department as a subordinate unit to another
department of the City.
BE IT FURTHER RESOLVED that the Council finds that when it is
necessary and is advantageous, various departments of the City may lend, from
tithe to time, personnel, equipment and render services to departments not nor-
mally charged with the control of the personnel, service and equipment loaned.
In such event the department receiving will be charged With the costs of personnel,
service and equipment used and such charge will be deducted from the appropriation
of the using department and transferred to the serving.department.
BE IT FURTHER RESOLVED that notwithstanding the provisions of the
paragraph above the Council reserves-the right to charge the Water Department,
which is a revenue producing agency of the City, a reasonable fee to cover, and be
charged off as, the Water Department's fair share of costs of management over-
head furnished by the administrative forces of the City. Said reasonable fee may
be set by the Council annually at budget time and the Water Department shall bud-
get the said fee as an operating expense chargeable against the revenues of the
department. •
BE IT FURTHER RESOLVED that this policy resolution is not intended
to conflict with Charter provisions, Resolution.No, 2260 N. C. S. , vested contrac-
tual or other rights of bondholders and/or persons and these rights and provisions
shall always be considered and construed as being 'super for ih right and effect.
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I hereby certify that the foregoing resolution was duly and ,regularly
introduced' and adopted by the Council of the Cityof Petaluma on
the 5" day Of June , 1961, by the following vote:
AYES: COUNCILMEN CRINELLA ,ELLIS ,MATZEN,➢AN BEBBER , AND MAYOR PARENT .
NOES: COUNCILMAN KING ,
ABSENT: COUNCILMAN GUSTAFSON . #7 -
Li ee//,, Ma, .r
Attest::/// /Iv G(�ICL'U,2
gity Clerk
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