City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: DECEMBER 12, 2023 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 prior assigned shares owned by the City to the mutual water companies listed for individuals not identified in the Attachment; 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 27, 2023, 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 David A. Garcia Todd M. Corbin Jurupa Ditch Water Company David A. Garcia Todd M. Corbin Riverside Highland Water Co. David A. Garcia Todd M. Corbin Trujillo Water Company Nancy Melendez Gildardo Oceguera Meeks & Daley Water Company David A. Garcia/Blake Yamamoto Todd M. Corbin 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 aligns with Strategic Priority 5 – High Performing Government and Strategic Priority 6 – Infrastructure, Mobility & Connectivity, and the following goals:
Goal 5.3 - Enhance communication and collaboration with community members to improve transparency, build public trust, and encourage shared decision making.
Goal 5.5 - Foster a culture of safety, well-being, resilience, and sustainability across the City Organization.
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 action aligns with EACH of the five Cross-Cutting Threads as follows:
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: David A. Garcia, Utilities Assistant General Manager/Water Approved by: Todd M. Corbin, Utilities General Manager Certified as to
availability of funds: Kristie Thomas, Finance Director/Assistant Chief Financial Officer Approved by: Rafael Guzman, Assistant City Manager
Approved as to form: Phaedra A. Norton, City Attorney
Attachments:
Annual Shareholder Meeting Dates
November 27, 2023 Board of Public Utilities Draft Minutes Shareholder Proxy Authority – Page 2