12-13-2021 BPU RPT 09 - Laserfiche WebLink

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RIVERSIDE PUBLIC UTILITIES Board Memorandum BOARD OF PUBLIC UTILITIES DATE: DECEMBER 13, 2021 SUBJECT: THE GAGE CANAL COMPANY CAPITAL EXPENDITURE BUDGET FOR FY 2021/22 IN THE AMOUNT OF $241,830 WITH A CITY OF RIVERSIDE SHARE IN THE AMOUNT OF $147,516.30 ISSUE: Consider recommending that the City Council approve capital expenditure budget for FY 2021/22, in the amount of $241,830 with a City of Riverside proportional share in the amount of $147,516.30. RECOMMENDATION: That the Board of Public Utilities recommend the capital expenditure budget for FY 2021/22, in the amount of $241,830, with the City of Riverside proportional share in the amount of $147,516.30. BACKGROUND: The Gage Canal Company (Company) was established in 1890 as a private, non-profit California corporation. The purpose of the Company was to bring artesian and pumped well waters, originating in the Bunker Hill basin area of San Bernardino, into Riverside for the purposes of irrigation. Later, additional wells were drilled in the Riverside North and Riverside South basins to increase their water supply. Shareholders in the Company had a right to a certain amount of gravity-fed water from the canal delivered on certain days of the month. In 1959, the City of San Bernardino and San Bernardino Valley Municipal Water sought to condemn the Gage Canal Company in order to reduce the amount of water being exported out of the Bunker Hill groundwater basin. At the behest of some of the Gage shareholders, the City of Riverside (City) exercised its power of eminent domain by filing a lawsuit to acquire all assets of the Company in 1959 to secure water rights for the beneficial use of the residents of the City. On June 9, 1965, the City and the Company entered into a stipulated judgment (Stipulation for Judgement in Eminent Domain and Final Order of Condemnation, Case No. 70785), under which judgment was the City agreed to continue irrigation water delivery to the shareholders and to employ the Company for the operation of the canal. In effect, the City purchased all the water rights, facilities, and property of the Gage Canal Company, less three operating properties retained by the Company.