HomeMy WebLinkAbout1999-01-26 - AGENDA REPORTS - CLWA PURCH WATER CO (2)NEW BUSINESS
DATE:
10A
DEPARTMENT:
CITY OF SANTA CLARITA
AGENDA REPORT
City Man
Item to be presented by
January 26, 1999
POTENTIAL PURCHASE OF A RETAIL WATER COMPANY BY THE
CASTAIC LAKE WATER AGENCY
City Manager's Office
RECOMMENDED ACTION
City Council reaffirm its policy that the purchase of a retail water company by the Castaic Lake
Water Agency would be a violation of California State Law, and not in the best interest of the
community. Furthermore, the City Council instruct the City Manager to communicate the
Council's action to the Castaic Lake Water Agency's Board of Directors and request that State
elected representatives decline any efforts to change such law.
In 1970, the Upper Santa Clara Water Agency was renamed, thus creating the Castaic Lake
Water Agency (CLWA). The CLWA's creation is spelled out in Chapter 103 of the California
Water Code Appendix, entitled the "Castaic Lake Water Agency Law".
Section 15 of the Castaic Lake Water Agency Law, titled General Powers of Agency, states the
following:
"The agency may acquire water and water rights, including, but not limited to, water
from the State of California under the State Water Resources Development System, and
provide, sell, and deliver that water at wholesale only, for municipal, industrial,
domestic, and other purposes, through a transmission system to be acquired or
constructed by the agency."
During the 1995/96 Legislative Session, the CLWA sponsored legislation authored by State
Senator Pete Knight that would change the scope of the Agency's authority, allowing the
Agency to be a water retailer. The Senator dropped the legislation, due to opposition by the
City Council, before it was voted upon by the legislature.
In addition to the legality of the issue, there are concerns regarding the possible conflict of
interest that could arise if a water wholesaler, such as CLWA, becomes a retailer. As water is
such a critical issue in Southern California, it is not in the best interest of the community for
CLWA to have a potential monopoly on water provision, with the oversight coming from a board
of directors that is not completely elected by the residents of the Santa Ciarita Valley.
Continued To:—
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Although becoming a water retailer is in violation of State Law and not in the best interest of
the community, the Agency has recently expressed an interest in purchasing the Santa Clarita
Water Company. It is recommended that the City Council reaffirm its policy that the purchase
of a retail water company by the Castaic Lake Water Agency would be a violation of California
State Law, and not in the best interest of the community. Furthermore, it is recommended that
the City Council instruct the City Manager to communicate the Council's action to the Castaic
Lake Water Agency's Board of Directors and request that State elected representatives decline
any efforts to change such law.
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