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12-287 RESOLUTION NO. 12-287 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE OPPOSING SAN DIEGO COUNTYWATER AUTHORITY'S COST-SHIFT WHEREAS, Eastern Municipal Water District (EMWD), is a retail and wholesale water supplier serving 755,000 residents in seven cities and unincorporated areas of Eastern Riverside County, and dedicated to serving its retail customer agencies, residents and businesses, by delivering a reliable, safe, high-quality water supply at a reasonable cost; and WHEREAS, The City of Menifee supports EMWD regional cooperative approach to water supply reliability and Metropolitan Water District of Southern California's (MWD)open and transparent rate setting process whereby the rates are adopted by a vote of the MWD Board of Directors, representing every region within MWD's service area; and WHEREAS, San Diego County Water Authority (SDCWA)filed a lawsuit in June 2010 challenging MWD's water rates and charges and claiming that SDCWA is over-charged, despite their own declaration that they pay 25 percent of MWD's revenue and receive 25 percent of the water supply; and WHEREAS, eight MWD Member Agencies joined the lawsuit to support MWD's rate structure and protect their rate payers; and WHEREAS, an outside report from the Los Angeles Economic Development Corporation has found that SDCWA investments in water independence and declining water sales are significantly impacting water rates to SDCWA rate payers; and WHEREAS, The City of Menifee supports EMWD's local investments that increase regional water supply reliability such as those undertaken by SDCWA, to the extent those costs are not borne disproportionately by ratepayers outside of their local service area; and WHEREAS, SDCWA has launched a negative public relations campaign associated with their lawsuit to divert attention from their water supply decisions and the increasing opposition to the $3 billion cost-shift that would be forced on MWD Member Agencies and their ratepayers in Riverside, San Bernardino, Orange, Los Angeles and Ventura Counties if SDCWA is successful; and WHEREAS, EMWD has a responsibility to protect its customer agencies, residents, businesses and communities in the EMWD service area from this unfair and unjust cost-shift that provides no new water supplies or benefits. THEREFORE BE IT RESOLVED, that The City of Menifee strongly opposes the SDCWA lawsuit against MWD and resolves to continue to protect its customer agencies and their ratepayers from this unfair cost shift which would dramatically increase water rates with no additional benefits. Resolution No. 12-287 BE IT RESOLVED that the effective date of this Resolution is August 7, 2012. ohn V. Denver, Mayor ATTEST: Au� Kathy Bennett, City Clerk APPRO S T R Jose cher, Ci y y r John V.Denver STATE OF CALIFORNIA ) Mayor COUNTY OF RIVERSIDE ) ss Thomas Fuhrman CITY OF MENIFEE ) Mayor Pro Tern I, Kathy Bennett, City Clerk of the City of Menifee, do hereby certify that the Wallace W. Edgerton foregoing Resolution No. 12-287 was duly adopted by the City Council of the City Councilmember of Menifee at a meeting thereof held on the 7`h day of August, 2012 by the Darcy Kuenzi following vote: Councilmember Ayes: Denver, Edgerton, Fuhrman, Kristjansson, Kuenzi Sue n ilmenber Noes: None Councilmember Absent: None Abstain: None Kathy Bennett, City Clerk 29714 Haun Road Menifee,CA 92586 Phone 951.672.6777 Fax 951.6793843 www.cityofrnenlfee.us