Riverside Highland Water Company (RHWC) has provided water service to the area since it was founded in 1898. As a Mutual Water Company, RHWC provides water to Its shareholders at cost, and prides itself in the cost-effective delivery of water services for over 120 years. On November 30, 1978 the City of Grand Terrace was incorporated as a municipal agency and in doing so, accrued to certain rights and grants to the rights of way within its municipal boundaries, including the right to require utilities utilizing City streets to provide services within the City of Grand Terrace boundaries to pay a Franchise Fee.
Disputes have arisen over the years regarding the City's right to impose a Franchise Fee upon RHWC for the use of City streets. To avoid prolonged litigation and incurring any additional legal costs, the City and RHWC have entered into a Stipulated Judgment to forever resolve this ongoing dispute.
As a result, RHWC has agreed to pay to the City an annual Franchise Fee in the amount of $23,000 (as may be periodically adjusted to reflect any future increases in RHWC's water consumption rates and bi-monthly meter charges). RHWC acknowledges that this mutually-negotiated Franchise Fee is not a tax and constitutes compensation for the use of government property, in this case, access to City Streets to provide water delivery services to RHWC customers.
The City of Grand Terrace acknowledges that RHWC is a Mutual Water Company providing water utility services within the incorporated boundaries of the City of Grand Terrace and that RHWC and the City continue to collaborate to coordinate repairs to infrastructure within the City to maximize efficiency and extend the life of City's and RHWC's Infrastructure. The City acknowledges that RHWC, upon notice by the City, consistently pays its street cut fees and has no outstanding obligations to the City of Grand Terrace. The City further acknowledges that it will not seek to collect any other fee, tax, charge, or assessment from RHWC relating to the use of City streets.
The City Council of the City of Grand Terrace and the Board of Directors of the Riverside Highland Water Company acknowledge that both parties are committed to work together toward the delivery of quality services to maintain the quality of life for residents and business owners within the City of Grand Terrace.
Sincerely,
Sylvia Robles, Mayor Pro Tern. City of Grand Terrace and William McKeever, President Riverside Highland Water Co.