Montebello, Sale of the Montebello Water System Measure, Measure W (June 2016)
| Measure W: Montebello Sale of the Montebello Water System Measure |
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| The basics |
| Election date: |
| June 7, 2016 |
| Status: |
 Defeated
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| Topic: |
| Local utilities |
| Related articles |
| Local utilities on the ballot June 7, 2016 ballot measures in California Los Angeles County, California ballot measures |
| See also |
| Montebello, California |
A measure authorizing the sale of the Montebello Water System was on the ballot for Montebello voters in Los Angeles County, California, on June 7, 2016. It was defeated by a margin of 170 votes.
| A yes vote was a vote in favor of selling the Montebello Water System to San Gabriel Valley Water Company. |
| A no vote was a vote against selling the Montebello Water System to San Gabriel Valley Water Company, maintaining city ownership of the system. |
After the city's water system ended with a deficit every year since 2007 and after certain experts estimated that as much as $50 million in funding for construction and improvements could be necessary in future years to maintain the system, the Montebello City Council opened up the water system for bidding from outside buyers. The San Gabriel Valley Water Company (SGVWC) provided the highest bid at $14,460,503, and the city council put Measure W on the ballot to ask voter approval of the sale to SGVWC.[1]
Election results
| Montebello, Measure W | ||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
| No | 5,440 | 50.79% | ||
| Yes | 5,270 | 49.21% | ||
- Election results from Los Angeles County Elections
Text of measure
Ballot question
The following question appeared on the ballot:[2]
| “ |
Shall the City of Montebello sell the Montebello Water System to San Gabriel Valley Water Company to create additional City revenues for essential services?[3] |
” |
Impartial analysis
The following impartial analysis of the measure was prepared by the office of the Montebello City Attorney:
| “ |
The City of Montebello owns a municipal water system, which is divided into two separate and non-contiguous systems that serves 1,647 users within the City. The City of Montebello system is 1 of 5 different water providers servicing the City. The other service providers are San Gabriel Valley Water Company, Montebello Land and Water Company, California Water Service Company and the South Montebello Irrigation District. Measure W places before the voters the decision of whether or not to sell the Montebello water system to San Gabriel Valley Water Company. Pursuant to the process outlined in the Public Utilities Code, the City of Montebello issued a Request for Proposals soliciting proposals to purchase the system from interested public utilities. After conducting a duly noticed public hearing and evaluating the proposals received, on March 9, 2016, the City Council found that San Gabriel Valley Water Company (“SGVWC”) was the best qualified public utility to continue to provide equal or better service to the customers of the system. SGVWC also submitted the highest offer, proposing to purchase the system for $14,460,503 (including $1,628,543 for a 10-year lease of the City’s adjudicated pumping rights). The City Council selected SGVWC as the proposed purchaser of the system, and directed Measure W to be placed on the ballot at the Special Municipal Election to be held on June 7, 2016. Since 2007, the City’s water system has experienced annual operating deficits, which have been paid from the General Fund. A recent water rate study estimated the annual operating losses since 2007 at $1,216,007. Despite water rate increases in 2013 and 2014 (50% and 25% respectively), the system continues to operate at a deficit. If the City retains the water system, expert water consultants have informed the City that approximately $50,000,000 in capital improvements and repairs to the system will be required in the future. SGVWC has been in business for over 75 years, and provides water service to 15 incorporated cities in the San Gabriel Valley and to various unincorporated areas of Los Angeles County. SGVWC currently provides water service to a portion of north Montebello, and operates the City’s water system under a contract with the City. SGVWC is regulated by the Public Utilities Commission (“PUC”), and rates charged by SGVWC must be approved by the PUC. A YES vote would allow the City to sell the water system and receive $14,460,503 in one-time revenues from SGVWC. The City would also receive ongoing annual revenues in the approximate amount of $150,000 from SGVWC’s ten (10) year lease of the City’s water rights. These funds would be available for general City services, such as police and fire safety protection, street and sidewalk repairs, youth and senior citizen programs, and other municipal services. A NO vote results in the City not selling the water system or receiving these one-time revenues. The City would retain ownership of the water system and the responsibility to fund operating costs and future capital improvements, maintenance and repairs.[3] |
” |
| —Montebello City Attorney[1] | ||
Full text
The full text of the measure is available here.
Path to the ballot
This measure was put on the ballot through a vote of the governing officials of Montebello, California.
Recent news
The link below is to the most recent stories in a Google news search for the terms Montebello water system sale Measure W. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.
See also
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External links
Footnotes
- ↑ 1.0 1.1 Los Angeles County Elections, "Montebello Sample Ballot, June 7, 2016, election," accessed May 25, 2016
- ↑ Los Angeles County Registrar, "Presidential Primary June 7, 2016 Measures Appearing on the Ballot," accessed May 20, 2016
- ↑ 3.0 3.1 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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