HomeMy WebLinkAbout1994-02-22 - AGENDA REPORTS - SALE SC WATER COMPANY (2)v
AGENDA REPORT
City Manager Approval
Item to be presented by:
Ken Pulskamp
NEW BUSINESS
DATE:
February 22, 1994
SUBJECT:
Sale of the Santa Clafita Water Company
DEPARTMENT:
City Manager's Office
BACKGROUND
In January of 1993 the City of Santa Clarita was approached by the Santa Clarita Water Company
(SCWC) to determine the City's level of interest in purchasing the company. The City had several
discussions with the Water Company, but no arrangement was ever made that was acceptable to the
parties. Two days after the earthquake we received a letter from SCWC saying they did not want to
continue discussions with the City.
The City has learned that the CLWA has most recently been having discussions with SCWC for the
purposes of acquiring the Company. CLWA has been attempting to change state law to make it legal
for them to acquire the Company. The newspaper reports that CLWA has offered to pay considerably
more for the Water Company than the amount offered to the City.
One of the advantages stated by CLWA to purchase SCWC is that this would resolve a suit filed by
them in 1990 against CLWA. This suit came about when it became apparent that CLWA was readying
itself for receipt of 25,000 acre feet per year, and CLWA was planning on redistributing water shares
so that SCWC would receive less than its contract share. The beneficiary of this reallocation would
be The Newhall Land and Farming Company.
The ownership of water rights in the SCV is a vital issue. It relates to health and safety, emergency
preparedness, planning, as well as the overall development of the Valley. This became very evident
when the City was thrust into the water business during the earthquake to provide necessary drinking
water because of serious damage to reservoir and water mains. The entities that are involved in the
water issues will clearly be the entities that, to a large extent, determine how the SCV looks in the
future.
The decisions as to who these entities are, therefore, is of tremendous public import and worthy of
considerable public deliberation. To date, very little of that discussion has taken place.
To facilitate this participation, Council may want to consider conducting a public hearing that would
include input from CLWA, SCWC. City officials, and the interested public citizens. Additionally, the
City Council should consider making public all information protected by the Brown Act on acquisition
of property at this hearing. This would provide an opportunity for the full community to participate
in a decision that will forever affect the future of SCV.
Conduct a special public hearing to discuss ownership of SCWC on March 16, 1994, at 6:30 p.m.
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APPROVED lwu
Mr. Pederson, Mayor
City Council Members
23920 W. Valencia Blvd.
Santa Clarita, CA 91355
Dear Mayor and City Council Members;
15414 Rhododendron Drive
Canyon Country, CA 91351
February 22, 1994
RU'_
PMT Ur I C-1— AT
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ITEM NO.
We oppose Castaic Lake Water Agency buying Santa Clarita Water Company.
Our opposition is based on CLWA's past and present history of having an inabil-
ity to responsibly manage planning their facilities and their finances� In add-
ition, when law does not allow the CLWA to meet their objectives, their way,
CLWA quietly seeks legislation to change the law. In most cases these changes
appear to benefit special interests instead of the general public.
The final responsibility of our water supply and other utilities for the city
of Santa Clarita rests with our city government. We cannot afford to leave such
important issues up to an independently state -formed entity.
We recommend that the city seriously consider the acquisition of the Santa
Clarita Water Company, post haste.
Sincerely,
Edwin and Joan Dunn