Attachment No. 1
RESOLUTION NO. 23-69
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORWALK,
FINDING THAT REQUIREMENTS PURSUANT TO CALIFORNIA PUBLIC UTILITIES CODE SECTION 10061 FOR THE SALE OF THE CITY OF NORWALK’S ARTESIA SERVICE AREA WATER SYSTEM AND RELATED
ASSETS LOCATED OUTSIDE OF ITS BOUNDARIES, HAVE BEEN MET
AND APPROVAL OF THE SALE
WHEREAS, the City of Norwalk (“City”), a California municipal corporation, is the owner of the Artesia Service Area Water System (“ASA Water System”) and related assets described in DRAFT GSWC Purchase Agreement attached to this Resolution located outside of the City’s boundaries; and
WHEREAS, the state legislature has found that public water systems are faced with the need to replace or upgrade the public water system infrastructure to meet increasingly stringent state and federal safe drinking water laws, but has also found that increasing amounts of capital needed to finance the necessary investment in public water system infrastructure is not possible for smaller, public water systems; and WHEREAS, pursuant to such findings, the state legislature passed the Public System Investment and Consolidation Act of 1997 (Public Utilities Code Section 2718, et seq.), promoting economies of scale by encouraging the consolidation of smaller public water systems with larger public water systems equipped with the expertise and resources to undertake necessary capital investments; and WHEREAS, on April 6, 2021, the City issued a Request for Proposals for the Purchase of the City of Norwalk Artesia Service Area Water System and Related Assets No. 21-649 for the acquisition of the ASA Water System, including full responsibility for its day-to-day management, operations, maintenance, repairs, and capital improvement projects (“RFP No. 21-649”); and
WHEREAS, the City received one proposal in response to RFP No. 21-649 from Golden State Water Company which has the experience, expertise, and capacity to take and better serve those customers in the ASA currently operated by the Norwalk Municipal Water System (NMWS); and
WHEREAS, Section 10061 of the California Public Utilities Code, authorizes a municipal corporation to sell, for just compensation, all or any part of its municipal water system that lies outside its municipal boundaries to any other public utility water corporation by following the provisions of Section 10061(b); and WHEREAS, pursuant to Section 10061(b), before the City sells the ASA Water System portion located outside of its boundaries, it shall, by resolution adopted by a majority of its legislative body, determine that the subject public utility, or portion thereof, is not necessary for supplying water service to its own inhabitants.
Resolution No. 23-69 Page 2 of 2
2 9
7 1
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NORWALK HEREBY DETERMINES, FINDS, AND RESOLVES AS FOLLOWS:
Section 1. Findings.
A. The City Council finds that the City’s aging infrastructure, including the Water System, is in critical need of capital improvements.
B. The City Council finds that the ASA Water System located outside its municipal boundaries are not necessary for supplying water service to its own inhabitants.
C. The City Council finds that the acquiring entity will be bound to render water service to the person(s) formerly served through the Water System being sold on terms and conditions that are just and reasonable and do not unreasonably discriminate against the City’s customers.
Section 2. Final Action and Authority. The City Council of the City of Norwalk hereby approves the sale of the City’s ASA Water System located outside its municipal boundaries to Golden State Water Company on the terms and conditions set forth in that Sale and Purchase Agreement (“Agreement”), attached hereto in substantial form, subject to review by the City Attorney as to form and legality. The City Council hereby also vests in the City Manager the authority to finalize and execute all documents reasonably related to the performance of the Agreement and contemplated transaction.
Section 3. Description of the Property. The ASA Water System is depicted in Exhibit “A” attached to this Resolution.
Section 4. Effectiveness. This Resolution shall become effective immediately upon its adoption.
Section 5. The Mayor, or presiding officer, is hereby authorized to affix her signature to this Resolution signifying its adoption by the City Council of the City of Norwalk and the City Clerk, or her duly appointed assistant, is directed to attest thereto.
APPROVED AND ADOPTED this 21st day of November 2023.
__________________________
ANA VALENCIA
MAYOR
ATTEST:
_________________________
THERESA DEVOY, CMC
CITY CLERK