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HomeMy WebLinkAboutMinutes-12-22-76-Recessed MeetingMINUTES OF THE CITY COUNCIL OF THE CITY OF DOWNEY RECESSED MEETING DECEMBER 22, 1976 The City Council of the City of Downey held a recessed meeting at 5:00 p.m., December 22, 1976, in the Council Chamber of the Downey City Hall, Mayor Hazel N. Scotto presiding. PRESENT: Council Members: William L. Greene Richard M. Jennings, Mayor Pro Tem Kenneth J. Miller Theodore H. Jackman Hazel N. Scotto, Mayor ALSO PRESENT: Royal M. Sorensen, City Attorney Ervin Spindel, Director of Community Development Robert Coates, Superintendent, Water Division Martin Wynne, Manager, Financial Systems John H. Saunders, Administrative Analyst Robert L. Shand, City Clerk -Treasurer Proposed Acquisition of Park Water Company and Southern California Water Company Systems. City Attorney Sorensen commented on the City's position from when this was first considered, and the Council's position at that time was explained to both water com- panies. He explained he has not been willing to have the City adopt a resolution reciting the City's intention until each of the water companies signed an agreement releasing the City from any liability for inverse condemnation in the event the acqui- sition was not completed for whatever reason. Mr. Sorensen stated the agreement drafted by the City has been signed by both water companies, and he is satisfied with it; also, the City of Pico Rivera has adopted and approved a like agreement, adopted a resolution similar to a proposed resolution now before the Downey City Council, and the Citv of Pico Rivera has approved the agreement as to effect. RESOLUTION NO. 3364 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY DECLARING ITS DECISION TO ACQUIRE CERTAIN PORTIONS OF THE PARK WATER COMPANY AND SOUTHERN CALIFORNIA WATER COMPANY WATER SYSTEMS The Resolution was read by title only. Mr. Sorensen advised that the agreement and the resolution have both been reviewed by the bond counsel for the City. A discussion was held regarding the decision to acquire the property by eminent domain. Councilman Jennings indicated he does not want the Council to be tied to a posi- tion of having to acquire the property by eminent domain if the sale does not go through. Mr. Sorensen commented on the procedures that must be taken before a City may acquire property by eminent domain. This Resolution, he said, does not initiate eminent domain proceedings. It was moved by Councilman Jennings, seconded by Councilman Jackman, and so ordered to waive further reading. It was moved by Councilman Jennings, seconded by Councilman Jackman, and passed by unanimous vote to adopt Resolution No. 3364. It was moved by Councilman Jennings, seconded by Councilman Jackman, and passed by unanimous vote to approve the Indemnity Agreement and authorize the Mayor to sign Mr. Sorensen then commented on changes in the Water System Acquisition Agreement. Mr. Sorensen commented on changes requested by the attorney for Southern California Water Company in the Water Acquisition Agreement, which changes are in language only as distinguished from changes in substance. Council Minutes 12/22/76 -L- (Recessed Meeting) Councilman Jennings said the City should be the last to sign the agreement; also, he would be willing to approve the agreement in substance but not authorize the Mayor to sign until after the water companies have signed. During discussion regarding the basis for the $750 per day penalty, Mr. Sorensen explained the only delay in meeting the deadline could be the IRS approval. It was noted the agreement is contingent upon the sale of water bonds. Questions were raised regarding the current bond market. Mr. Sorensen explained the City can negotiate with the water companies independ- ently. Responding to further questions regarding the penalties, he stated the maxi- mum amount of penalties would be $22,500, which would only be paid in the event the sale is consummated and would be added to the purchase price. Mr. Sorensen indicated that after submission of the final letter to the IRS, it should take one week to ten days to get oral approval. He noted that January 20th is the anticipated closing date although it can be extended, and the penalty would not commence until February 20th. Councilman Jennings asked to see a budget for the operation of the two combined water systems showing operational costs plus interest, including the new Southern California and Park Water rates. Portions of the agreement were reviewed and clarified at the request of Council- man Jennings. Mr. Coates compared the water rights now held versus possible rights to be acquired. It was moved by Councilman Jennings, seconded by Councilman Jackman, and passed by the following vote to approve the Water System Acquisition Agreement as to form and substance and authorize the Mayor to sign same after the agreement is signed by both water companies. Mr. Sorensen assured the Council that each member would receive a copy of the agreement after it is signed by the water companies, prior to the Mayor's signature. AYES: 5 Council Members: Greene, Jennings, Miller, Jackman, Scotto Councilman Jennings asked if the Water Facility Corporation can bind the City Council. Mr. Sorensen replied it can only bind the Council to the extent the Council will be bound when it enters into the leaseback agreement with the corporation, and the powers, duties, and obligations of each entity will be spelled out in the agreement. Councilman Jennings reported on a water main leak in the backyard of property on Brunache Street. He said after numerous calls, the people finally called him,and he called the Southern California Water Company who agreed it was their pipeline. He pointed out the pipe is rotten. Mr. Coates explained it is the City's plan to replace approximately two miles of pipeline a year to correct these situations. Operation of Pico Rivera Water System. Mr. Spindel suggested since the material was just received by Council it would be no problem to take it under submission to the next regular meeting. Councilman Jennings commented on the City's cost to maintain the Pico Rivera system. He said per his calculations, the estimated costs are accurate. Mr. Coates advised that prior to taking over the water systems and because of all the work involved, it will be necessary to promote one position to Senior Engineer- ing Aide. He mentioned this will come back to the Council for approval. Councilman Miller asked who is maintaining that portion of the Pico Rivera system in Santa Fe Springs. Mr. Coates replied Santa Fe Springs, although he believes there is no agreement between the two cities. Discussion followed regarding costs and personnel for the City of Downey to do the water billing for Pico Rivera. Mayor Scotto asked that the report for next meeting include estimated maximum cost to hire either full-time or part-time personnel for the billing. Council Minutes 12/22/76 -2- (Recessed Meeting) nay' Mayor Scotto reported on receipt of correspondence regarding Moratorium on the Swine Flu Vaccine. Mayor Scotto briefly mentioned her appearance on Channel 7 with regard to the Police Negotiations. Councilman Miller requested an update on the cost of proposal made to the Police Department. Mayor Scotto commented on the rotation order of chairman for the Southeast Area Animal Control Authority. She said Norwalk's appointee chaired the meetings last year, this year will be Pico Rivera, and next year Downey. There being no further business to come before the City Council, the meeting was adjourned at 6:30 p.m. Robert L. Shand, City Clerk -Treasurer Council Minutes 12/22/76 (Recessed Meeting) -3- HAzeVN. Scotto, Mayor