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RESOLUTION NO. 6555
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS
AUTHORIZING STAFF TO SOLICIT A PROPOSAL FROM THE
REDLANDS UTILITY AUTHORITY TO LEASE THE CITY'S MUNICIPAL
WATER AND WASTEWATER SYSTEMS AND SETTING A PUBLIC
HEARING DATE TO EVALUATE SUCH PROPOSAL
WHEREAS, the City of Redlands (the "City") owns and operates those certain municipal
water and wastewater systems (the "Enterprise"); and
WHEREAS, the City Council of the City of Redlands ("this City Council") desires to
solicit proposals for the lease of the Enterprise that will be evaluated on whether (1) residents of
the City will be provided equal or better service by the lessee, (2) the proposal results in savings
and/or recovery of capital expenditures previously incurred by the City in connection with the
Enterprise, and (3) the Enterprise will continue to be subject to local control, ownership and
operation; and
WHEREAS, this City Council finds, based on the testimony provided by City staff, that a
joint exercise of powers agency designated as "Redlands Utility Authority" (the "Authority") to
be formed and comprised of the City and the Redevelopment Agency of the City of Redlands,
which Authority will be duly created, established and authorized to transact business and
exercise its powers, all under and pursuant to the Joint Powers Law (Articles I through 4 of
Chapter 5, Division 7, Title 1 of the California Government Code) including the power to lease a
municipal water system, would be the only entity capable of submitting a responsive proposal;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF REDLANDS DOES
RESOLVE AS FOLLOWS:
Section 1. The City hereby authorizes staff to prepare a proposal from the Authority to
lease the Enterprise.
Section 2. A public hearing(the "Hearing") to examine the proposal to lease the
Enterprise shall be held on July 21, 2009, at 7:00 p.m., or as soon thereafter as practicable, at the
chambers of the City Council of the City of Redlands, 35 Cajon Street, Redlands, California
92373.
Section 3. The City Clerk is hereby directed to publish a notice of the Hearing pursuant
to Section 6066 of the Government Code.
Section 4. The City hereby appoints Fulbright & Jaworski L.L.P. as special counsel in
connection with the proposed lease of the Enterprise pursuant to the fee agreement on file with
the City Manager. The Mayor is hereby authorized to execute such fee agreement on behalf of
the City.
Section 5. The City hereby finds and determines that the City's approval of this
Resolution is exempt from review under to the California Environmental Quality Act("CEQA"),
pursuant to the State's CEQA Guidelines Sections 15061(b)(3), because it can be seen with
certainty that the lease of the City's utility systems will not have a significant effect upon the
environment because the approved lessor will be required to operate and maintain the systems in
I:Iccterk\Reso1utions:6855 Redlands Utitity Authority.DOC I
accordance with all laws, regulations and requirements applicable to the City, and in accordance
with all Master Plans and other system plans adopted by the City.
Section 6. The City Clerk shall certify to the adoption of this Resolution, and thenceforth
and thereafter the same shall be in full force and effect.
ADOPTED, SIGNED AND OVED this 7th day of July, 2009.
Jon Harrison, Mayor
ATTEST:
Lorrie Poyzer, City Clerk
Lcclerk\Res(Autions\6855 Redlands Utility Authority.DOC 2
RESOLUTION NO. 6556
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS
AUTHORIZING THE CREATION OF THE REDLANDS UTILITY
AUTHORITY AND TAKING CERTAIN OTHER ACTIONS IN
CONNECTION THEREWITH
WHEREAS, the City Council of the City of Redlands (the"City") has been advised by its
staff and consultants that the lease of the City owned municipal water system and wastewater
system (collectively, the "Enterprise") to another locally controlled public entity may have long
term benefits to the City; and
WHEREAS, the City's staff and consultants have recommended that the City consider
the lease of the Enterprise to a joint exercise of powers agency comprised of the City and the
Redevelopment Agency of the City of Redlands (the"Agency"); and
WHEREAS, in order to assist the City in the leasing of the Enterprise, the City and the
Agency intend to form a joint exercise of powers agency designated as the "Redlands Utility
Authority" (the "Authority") pursuant to a Joint Exercise of Powers Agreement (the "Joint
Powers Agreement"), which Authority will be duly created, established and authorized to
transact business and exercise its powers, all under and pursuant to the Joint Powers Law
(Articles 1 through 4 of Chapter 5, Division 7, Title I of the California Government Code)
including the power to lease the Enterprise; and
WHEREAS, the City hereby finds and declares that entering into the Joint Powers
Agreement will be beneficial to persons residing within the City; and
WHEREAS, the City Council, with the aid of its staff, has reviewed the Joint Powers
Agreement and the City Council wishes to approve the Joint Powers Agreement and matters
related thereto;
NOW, THEREFORE, BE 1T RESOLVED by the City Council of the City of Redlands as
follows:
Section 1. The City hereby approves the creation of the Authority, its membership
therein and the Joint Powers Agreement related thereto, substantially in the form attached hereto
as Exhibit "A," with such revisions, amendments and completions as shall be approved by a
Responsible Officer with the advice of Fulbright & Jaworski L.L.P. Los Angeles, California, as
special counsel ("Special Counsel") and the City Attorney, such approval to be conclusively
evidenced by the execution and delivery thereof. A Responsible Officer shall include any
member of the City Council, the City Manager, the City Clerk, the Finance Director, or any
official of the City designated by the Mayor or the City Manager as a Responsible Officer.
Section 2. The Mayor. the City Manager, the Finance Director, or any other Responsible
Officer the City, and each of them, is hereby authorized and directed to execute and deliver any
and all documents and instruments and to do and cause to be done any and all acts and things
necessary or proper for carrying out the transactions contemplated by this Resolution.
l:Ecclerk',Resolutions`Res 6800-6879%956 Redlands Utility Authority Forniation.DOC I
Section 3. The City Council hereby finds and detennines that the Council's approval of
this Resolution is exempt from review pursuant to the California Environmental Quality Act
("CEQA") pursuant to the State's CEQA Guidelines Sections 15061(b)(3) and 15378 (13)(5)
because it can be seen with certainty that the creation of a new governmental authority will not
have a significant effect upon the environment.
Section 4. The City Clerk shall certify to the ad tion of this Resolution, and thenceforth
and thereafter the same shall be in full force and e ct.
ADOPTED, SIGNED AND AP VED this 7th day of July, 2009.
Jon Harrison, Mayor
ATTEST:
Lorrie Poyzer, City Clerk
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I:`cclerk\Resolutions`Res 6800-687916856 Reellan&Utility Authority Formation.DOC 2