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Dixon council votes not to seek proposals to sell or outsource city water system
Summary
After staff presented a draft RFP to solicit proposals for operating or purchasing the Dixon water system, council voted not to proceed with issuing proposals; council members raised concerns about recent Proposition 218 rate-setting, costs to the water fund and the need for voter approval for any sale.
Staff presented a draft request for proposals to solicit information from potential operators or buyers for the Dixon water system, noting the RFP would be non-binding and any sale of the system would require voter approval and additional council action. Mr. White described RFP components including scope, evaluation criteria and contracting requirements and said the RFP would clarify that any eventual sale would require subsequent council approval and a public vote.
Councilmembers pressed staff on whether the city had authority to sell the system without voter approval (staff responded it would not), the potential drain on water funds to conduct outreach and the merits of exploring proposals versus leaving established rate and rehabilitation plans in place. Council Member Bogue and others argued the recent Proposition 218 process and planned improvements argue for pausing, while Council Member Hendershot favored exploring options. A motion not to issue the RFP carried on roll-call (majority in favor; Hendershot opposed). "No," Mr. White replied when asked whether the city could sell the water system without voter approval, and later explained a public vote would be essential if a sale progressed.
Council thus directed staff not to proceed with issuing the RFP at this time. The item died for lack of a motion to continue; the council recorded a formal motion to halt the RFP process and approved it by roll call.
