City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: DECEMBER 6, 2022 FROM: PUBLIC UTILITIES DEPARTMENT WARDS: ALL SUBJECT: Shareholder Proxy Authority AND ASSIGNMENT OF SHARES for Mutual Water Companies ISSUE:
Approve the shareholder proxy authority and assignment of shares as outlined in this report.
RECOMMENDATIONS:
That the City Council:
Confirm the shareholder proxy authority for voting representatives and alternates outlined in the report; Authorize the assignment of shares for each mutual water company owned by the City to the specified Board of Public Utilities members; Rescind any and all prior assigned shares owned by the City to the mutual water companies listed; and Delegate authority to any designated representative or alternate to vote the City’s shares as the City’s proxy at all meetings of the respective mutual water companies from the date of this action until amended, consistent with the City’s adopted policies and strategic plan.
BOARD RECOMMENDATION:
On November 14, 2022, the Board of Public Utilities unanimously recommended that the City Council approve the voting representatives and alternates of shares for Mutual Water Companies.
DISCUSSION:
Submitted for City Council consideration is the affirmation of the following City voting representation and alternates for Shareholders Meetings of the mutual water companies in which the City owns stock and delegation of authority to these individuals to vote the City’s shares as the City’s proxy at all meetings of the respective mutual water companies:
MUTUAL WATER COMPANY VOTING REPRESENTATIVE ALTERNATE
Gage Canal Company Todd M. Corbin David A. Garcia
Jurupa Ditch Water Company David A. Garcia Michael Plinski Riverside Highland Water Co. David A. Garcia Michael Plinski Trujillo Water Company Nancy Melendez Gildardo Oceguera Meeks & Daley Water Company David A. Garcia Michael Plinski The proxy authority would extend to matters that routinely come before the shareholders for consideration consistent with each company’s articles of incorporation and bylaws, as well as voting for representation on the boards of directors for each company. Attached is a list of Annual Shareholder meeting dates and number of shares owned by the City in the various companies.
The assignment of shares is a necessary requirement for any member of the Board of Public Utilities to serve on the Gage Canal Company Board of Directors.
STRATEGIC PLAN ALIGNMENT:
Representing the City’s interest and participating in local mutual water company meetings contributes to Strategic Priority 5 - High Performing Government and Goal 5.3 - Enhance communication and collaboration with community members to improve transparency, build public trust, and encourage shared decision making, and Goal 5.5 - Foster a culture of safety, well-being, resilience and sustainability across the City Organization; and Strategic Priority 6 - Infrastructure, Mobility & Connectivity and Goal 6.2 - Maintain, protect and improve assets and infrastructure within the City’s built environment to ensure and enhance reliability, resiliency, sustainability, and facilitate connectivity.
This item aligns with each of the Cross-Cutting Thread threads:
Community Trust – Discussions related to pending policy issues, planning efforts, and actions to be taken by local mutual water companies allows RPU customers to provide input to the RPU Board and to RPU’s voting representative and ensures community trust.
Equity – RPU’s representatives understand the need for equitable distribution of services and their participation in local mutual water company meetings ensures those values are represented and communicated.
Fiscal Responsibility – Determining the value of projects and programs being proposed by local mutual water companies allows RPU representatives to vote in a financially responsible manner.
Innovation – Collaborating with other neighboring water companies and others throughout the watershed allows for creative and regional solutions. Ensuring reliable and clean water supplies are available for future generations is the goal of water providers.
Sustainability & Resiliency – RPU’s representatives understand the direction from City Council and will encourage and promote projects that are implemented in a sustainable manner.
FISCAL IMPACT:
There is no fiscal impact associated with this report.
Prepared by: Todd M. Corbin, Utilities General Manager Certifies availability
of funds: Edward Enriquez, Interim Assistant City Manager/Chief Financial Officer/City Treasurer Approved by: Kris Martinez, Assistant City Manager
Approved as to form: Phaedra A. Norton, City Attorney
Attachment: Annual Shareholder Meeting Dates
Shareholder Proxy Authority – Page 2