HomeMy WebLinkAbout4/6/2005 - STAFF REPORTS (12) RESOLUTION NO. 21242
OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS IN SUPPORT OF SENATE BILL 557
WHICH AUTHORIZES THE SALE OF THE CITY'S
WASTEWATER TREATMENT PLANT TO THE
DESERT WATER AGENCY.
WHEREAS, in 1999 Palm Springs voters overwhelmingly approved a citizen
backed initiative, known as Measure U, which authorized the City Council to sell
its Wastewater Treatment Plant to another public agency located within the City's
jurisdictional boundaries;
WHEREAS, subsequent to the passage of Measure U, the City entered into
negotiations with the Desert Water Agency -- one of the few public agencies
authorized to purchase the Wastewater Treatment Plant under Measure U --
regarding the possible sale of the treatment plant and collection system; and
WHEREAS, last year the City and Desert Water Agency reached a tentative
agreement to sell the Wastewater Treatment Plant for $27.5 million;
WHEREAS, in the process of finalizing the agreement between the two public
agencies a little known provision in State Public Utilities Code was discovered
that requires a 2/3 vote of all voters within the City before selling a public utility
like the Wastewater Treatment Plant;
WHEREAS, the City is unable to complete the sale of the Wastewater Treatment
Plant to the Desert Water Agency due to this requirement;
WHEREAS, the City Council feels that voters in passing Measure U has already
authorized the sale of the Wastewater Treatment Plant;
WHEREAS, Senators Battin and Ducheny have introduced Senate Bill 557,
which acknowledges the special circumstances created by the passage of
Measure U, and authorizes the sale of the City's Wastewater Treatment Plant to
another public agency like the Desert Water Agency without holding an election
of the voters as required by the State Public Utilities Code;
WHEREAS, the sale of the City's Wastewater Treatment Plant to the Desert
Water Agency will be very beneficial to both agencies;
Resolution 21242
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WHEREAS, by acquiring the City's Wastewater Treatment Plant, the Desert
Water Agency will be able to integrate the entire water system to better plan for
future growth while protecting the groundwater supply from potentially dangerous
levels of nitrates;
WHEREAS, by operating the Wastewater Treatment Plant the Desert Water
Agency will be able to enhance and expand their reclaimed water program which
will provide a ready supply of low-cost recycled water for our parks, medians, golf
courses and other landscaping projects throughout the City;
WHEREAS, by selling the Wastewater Treatment Plant the City will be able to
eliminate a business function that is highly specialized and requires a level of
expertise more closely related to the core function of the Desert Water Agency;
and
WHEREAS, the sale of the Wastewater Treatment Plant to the Desert Water
Agency will provide approximately $27.5 million to the City that can be used for
various Capital Improvement Projects and to strengthen the City's reserves.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm
Springs, California, does hereby support passage of Senate Bill 557 which will
authorize the City of Palm Springs to sell its Wastewater Treatment Plant to the
Desert Water Agency without the required election and passage by a 2/3 vote of
all voters within the City as set forth by the State Public Utilities Code.
BE 11' FURTHER RESOLVED, that the City Council does hereby encourage
citizens, civic groups, homeowner and neighborhood associations, and other
community organizations to stand with the City Council in supporting passage of
Senate Bill 557.
ADOPTED this 6th day of April, 2005.
AYES: Members McCulloch, Mills, Pougnet and Mayor Oden
NOES: None
ABSENT: Member Foat
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
City Clerk City Manager