HomeMy WebLinkAboutTUSTIN WTR WORKS 08-04-80DATE:
July 31, 1980
Inter - C om
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: JAMES G. ROURKE, CITY ATTORNEY
SUBJECI: TUSTIN WATER WORKS - ACQUISITION
Councilwoman Kennedy has reviewed the preliminary draft
of proposed letter to the customers of the Tustin Water Works
and has requested a number of revisions. We enclose herewith a
copy of the letter as it would read with the revisions proposed
by Councilwoman Kennedy.
JGR:se:D:7/31/80
Enclosure
cc: D.B., w/encl.
DP. AFT AS PROPOSED BY
COJ~k% I L\VO.'sL&N KENNEDY
Dear Custc:;,er of Tl,e T'~]slin Water ~,,;'orks:
%s ye~a have probably read, the City of Tustin has entered into
an a§~e~:::ent with the shal-eho!ders of the Tustin Water g'orks for
the ?urc~ase of all their shares of stock. Pursuant to this Agree-
ment the City of Tustin will assume responsibility for delivery of
~'ater to all p~'esent Tust. in Water Works users~ both those inside
and those outside the City limits. At the time of agreeing to this
purchase the City et Tustin adopted a policy of complete non-
discrimination between City and County residents. In the appli-
cation filed with the Public Utilities Comission for approval of
the acquisition, the City has asked that this non-discrimination
Certain persons designated as the "leaders", self appointed or
otherwise, of the residents of the unincorporated County areas,
have filed objections with the Public Utilities Corrmission to the
a?proval of this transfer, acting as your representatives.
At t~eir request a hearing was held on 3uly 7, and at their
~urtber request another hearing is going to be held next month.
They are doing everything the), can to delay these proceedings.
Their objections and requests for hca'rings will result in added
costs and expenses of the acquisition including:
less of revenues during the waiting period,
expenses of preparation for the hearings~
an addition to the purchase price o[ $200,000.00 if Pub-
lic Utilities Commission approval is not received by
October 31,
The City of Tustin wants and intends to acquire and operate
the Tustin Water Works for the benefit of all the citizens of the
area, both those inside the City limits and out, without discrim-
ination o~ any kind whatsoever.
The Tustin Water Works is an old and out-dated system. It has
problems with its wells, nitrates in the water, undersized mains,.
etc. The company is 93 years old. Over the years it has served theZ
conmr~unity reasonably well and at low rates, but now the co,wmunity
has outgrown it and its owners want to retire from the water bus-
iness and its increasing problems.
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The City o~ Tustin and *', Tustin .,,~ter ",:'orks elected to
·
effe,:iuate the 'Fustin '~'~ ~'
~,..ter ,~orks acquisition by a contract for
which ~p~reval is [equired by the California F~blic Utilities
Com~ss[on. TEe acquisition could have been~ and still couJd be,
cond:~cted ~'.~:',~h the process ,)~ emiaent domain~ which does not
require Public Utilities Comr~is~[on ~pproval. I$ the Cit~ were to
follow that c*~rse it would not be under ~ny obligation to ~ollow
policy o[ r~on-dJscrh~nat~on 5etween City residents and County
residents. ~t',e City ha.s consistently pursued this matter in
sound 7:nd fiscally responsible m::nner, for the best interests
everyone, City ~nd Co~J~ty resid,_n~s alike. It ~,as ;~o desire to
treat County res~4ents t~:~falrly. ]Jowever, if the C~ty should elect
'to proceed ,:,'~th the acquisition via cer~demaat~on~ the end result
could be teat opponents for the purchase would Y~ave caused you to
lose the beneflts and protection the City has been willing to
¥oluntarily ~. s s~me.
The majority of lhe City Council feels the acquisition of the
Tustin Water ~'orks is necessary in order to ensure continued and
improved water service to all customers. The City has no desire to
treat Count), residents unfairly and that is precisely why the
County has a~ked the PUC to make a non-discrimination policy a
condition of approval.
Very truly yours~
,ME'<'~BERS OF TIqE TUSTIN CITY COUNCIL
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