RES 1382 04/14/2009 CITY OF CIBOLO
Resolution No: 1382
A RESOLUTION SUPPORTING LEGISLATION
TO INCREASE PUBLIC ACCOUNTABILITY OF
WATER SUPPLY CORPORATION
A RESOLUTION OF THE CITY OF CIBOLO, TEXAS,
SUPPORTING LEGISLATION THAT INCREASES
PUBLIC ACCOUNTABILITY OF WATER UTILITIES
THROUGH: (1) ANNUAL AUDITS, (2) OPEN
GOVERNANCE AND OPEN ELECTIONS, AND
(3) PROCEDURE FOR OVERSEEING RATES AND
SERVICES.
WHEREAS, the City Council of the City of Cibolo finds that the City of Cibolo and other
expanding municipalities must work closely with local rural water utilities,
including Water Supply Corporations ("WSCs"); and
WHEREAS, a municipal cooperation with WSCs require transparency and oversight of
financial,technical, and managerial operations of these utilities; and
WHEREAS, the Texas Water Code states that retail public utilities, such as WSCs, "are
monopolies in the areas they serve," and thus the normal forces of
competition that operate to regulate prices in a free enterprise society are not
applicable; and
WHEREAS, like water districts, WSCs enjoy certain benefits provided in Chapter 49 of
the Water Code, including the right to eminent domain (condemnation), but,
unlike water districts, WSCs are not required to file annual audits with the
Texas Commission for Environmental Quality or any supervising agency,
and are not subject to the types of financial and managerial review and
oversight required for other utilities or Districts under the Texas Water Code
and TCEQ Rules; and
WHEREAS, recent investigations and legislative hearings on local and national member-
owned utility cooperatives have demonstrated the importance of open
accounting and election procedures, including absentee ballot procedures
like those used for publically held corporations, rather than proxy
procedures in which prizes are offered as incentives to the members to give
the board their proxies; and
WHEREAS, other municipalities and the Texas Municipal League have expressed
support legislation that would increase public accountability and the City
would like to also support that legislation.
NOW, THEREFORE,BE IT RESOLVED by the City Council of the City of Cibolo:
1. The City of Cibolo City Council supports legislation that amends the
Texas Water Code to require WSCs to file annual audits with an overseeing
state agency;
2. The City of Cibolo City Council supports legislation the requires WSC
officials to be elected through a process which requires a petition (or other
disclosed procedure) to determine whom will be listed on the proxy; and
3. The City of Cibolo City Council supports legislation that amends Texas
Water Code Chapter 13 to require WSCs to submit rate and service
packages to cities for water services to customers within city limits; and
4. The City Of Cibolo City Council supports legislation clarifying that WSCs
are in fact subject to the Public Information Act and the Open Meetings Act.
PASSED AND APPROVED this, the 14th day of April 2009, by a vote of ?, (ayes)
to_,�>_(nays) to <V (abstentions) of the City Council of the City of Cibolo, Texas.
Jennifer Hartman
Mayor
ATTEST:
Z/n"
Peggy Cimics
City Secretary