Report of T he Municipa l Annexation Commission .. To The City Council -of- Los Angeles Filed November 11, 1913 This Report approved by the City Council at its meeting held November 13, 1913. The Municipal Annexation Commission was or¬ ganized October 14, 1913, by authority of the City Council of Los Angeles, upon recommendation of Mayor H. H. Rose that definite action be taken rela¬ tive to distribution of the Aqueduct water. The Commission was organized with Mayor Rose as chairman; Councilman M. F. Betkouski, vice- chairman; George B. Harrison, secretary; Ralph Criswell, George H. Dunlop, Miles Gregory, Irving H. Heilman, Leslie R. Hewitt and Orra E. Monnette, commissioners. Daily sessions were held with conferences from representatives of all the outside districts that asked to be heard. At an early date in the series of meetings the Com¬ mission decided, as a fundamental policy, that an¬ nexation to Los Angeles should be made a condition precedent to distribution of the Aqueduct water This report was unanimously adopted by the Muni¬ cipal Annexation Commission and presented to the City Council at its meeting held November 11, 1913, and approved by the City Council November 13, 1913. REPORT OF THE MUNICIPAL ANNEXATION COMMISSION To the Honorable Council of the City of Los Angeles: Your Municipal Annexation Commission, appointed to consider the relation that should exist between the sale of aqueduct water* and the annexation or consolidation of outside territory to the City of Los Angeles, herewith submits the following report: A. We recommend that annexation or consolida¬ tion shall be a condition precedent to the furnishing of water to any territory outside the present city boundaries. B. We submit and recommend a general plan under which annexation, in the case of unincorpor¬ ated territory, or consolidation in the case of incor- —3— porated cities, shall take place. Certain of the details of this plan can only be completely worked out in connection with the different requirements of the various sections that may seek annexation or con¬ solidation, but the plan as a whole is quite definite, and there need be no difficulty in arranging for the details that will be appropriate for each case of annexation or consolidation as such cases may arise. A. Annexation or Consolidation a Condition Prece¬ dent to the Sale of Water We deem it appropriate that we should state some of the reasons that have led us to recommend that annexation or consolidation should be a condition precedent to the furnishing of water to any territory outside the present city boundaries. (1) Annexation or consolidation, quicker than any other method, will get the aqueduct water into use, producing a revenue, and making possible the turning of the wheels of the City’s electric power plant. Without annexation, no outside territory can secure a permanent title to the water. Lacking per¬ manent title to the water, outside territory will not, and can not, raise the money to install the necessary distributing systems. With annexation or consoli¬ dation, however, the water right becomes permanent, and on that basis it will be possible for the annexed or consolidated sections to finance their own dis¬ tributing systems. Several years have been spent in various efforts to have Los.Angeles approve plans for selling the aqueduct water to outside territory while that territory still remained outside the city boundaries. None of these plans has met with the approval of the City and it certainly now is time, in the interest both of the aqueduct enterprise and of a lower tax rate, that the City adopt the plan, direct and simple, of annexing or consolidating territory and distributing water therein. (2) Annexation or consolidation will eliminate 4 several serious legal uncertainties.. If Los Angeles steps outside the field of selling water to its own inhabitants, and proceeds to undertake a general water business, selling to outside customers, it is difficult to say to just what extent the courts would hold that the City, in relation to water sold outside its boundaries, had brought upon itself the obliga¬ tions and regulations that apply to private water companies selling water for profit. Thus this ques¬ tion arises: Would it be possible for land owners, along the line of the aqueduct, perhaps in Antelope Valley, or the Owens River Valley, to compel the City to sell them water? Good legal opinion answers this question in the negative, but some Supreme Court, and not our local attorneys, would ultimately decide that question. Here is another question: Would the City of Los Angeles, or would the State Railroad Commission, have the right to fix the rates at which Los Angeles would sell water outside its boundaries? From these and similar legal uncertainties annexation will save the City. Such questions can never arise if the City sells water only to territory that first comes inside the city boun¬ daries. (3) Annexation or consolidation will be a step in the direction of City and County consolidation. For a number of years Los Angeles has desired to relieve itself of the expensive dual government, city govern¬ ment and county government, which it now has, and has desired to consolidate these two local govern¬ ments into one government, known, under the Con¬ stitution of the State of California, as a Consolidated City and County Government. No progress has been made on this problem in the past, but if Los Angeles, by various extensive annexations, can so enlarge its boundaries that the City itself shall cover i practically the entire area necessary to form a proper consolidated city and county government, I . - 5 - then the difficulties of the problem will have been greatly simplified. y . (4) Annexation or consolidation will give Los Angeles official standing as the metropolis of the Pacific Coast. Greater Los Angeles, co-extensive with the territory receiving aqueduct water, will have a population, assessed valuation, bank clearings, v. building permits, etc., in excess of any other city on the Pacific Coast. All this has an economic value to which Los Angeles is entitled by reason of the great investment it has made and the risk it has incurred in the Owens River Aqueduct enterprise. Wherever the aqueduct water is placed—be it north, south, east or west—there will the great development of the future be found, and that development should be a part of, and help to constitute, the Greater Los Angeles that is to be. B. General Plan of Annexation or Consolidation (1) Annexation or consolidation shall be a con¬ dition precedent to the furnishing of water to any territory. (2) Annexed territory shall bear its proportionate share of the Aqueduct, Power and Harbor bonds, but not of the balance of the outstanding indebted¬ ness of the City, for the two reasons that either the remaining bonded indebtedness has been created for purely local purposes or in particular cases is of such comparatively small amounts as not to merit consideration. (3) The more distant annexed territory, or cities consolidating with Los Angeles, shall have, if desired by the voters thereof, local boards of public works to pass on questions relating to streets and local public works and oversee the same, all under the direction of the City’s Board of Public Works. We recommend that the functions of such local boards of public works, having first been established by t ordinance, shall thereafter be further established as — 6 — may be necessary in the form of a charter amend¬ ment, to be adopted by the City. The purpose of such charter amendment should be to make a more perfect provision, than can be made by ordinance, for insuring local jurisdiction over purely local mat¬ ters. ' In this manner we believe an effective system of borough government could be inaugurated. (4) Agricultural sections shall be classified as such in contradistinction from City sections and shall have sixty (60%) per cent, of the annual taxes they pay for the general running expenses of the City set aside to constitute a road and improvement fund for general public improvement and road work in such agricultural sections. To balance this road fund arrangement, the City shall not attempt to furnish to the agricultural sections those features of city expenditures not required by agricultural sections, such as expenditures for parks, playgrounds, garbage collection, and, to a large extent, expenses for fire and police protection. (5) The municipal water system shall be extended to all annexed or consolidated territory. Annexed or consolidated territory shall pay for its local dis¬ tributing systems, to be acquired or installed, owned and controlled by the City, for the distribution of water, but the City shall construct, as main lines or conduits carrying the aqueduct water to the local distributing systems, the trunk lines known as the Glendale line, including connection with the north¬ ern and eastern portions of the City; the Fernando conduit, conveying the water to a storage reservoir, and the Chatsworth main, to be extended from the storage reservoir to a connection with th*#tos An¬ geles city trunk line; said main lines or conduits to be built to the extent and of the capacity sufficient to take care of the needs of the City and of any additional territory which shall be annexed or con¬ solidated or planned to be annexed to or consoli¬ dated with the City. ■7 The particular manner in which the various an¬ nexed districts shall raise the money with which to pay, each for its own local distributing system, may well be varied to suit the different needs of the various districts. Should a large area, such as the San Fernando Valley, desire to organize, subsequent to its annexation to the City, into an irrigation dis¬ trict under the so-called Shenk Act, for the purpose of raising funds with which to install a local dis¬ tributing system, we believe that the City should approve such a method of financing the cost of said local distributing system. We believe that organi¬ zation of territory into an irrigation district prior to its annexation, or under the so-called Bridgford Act, would be contrary to the annexation program which we recommend. (6) Extension of any light and power system which the City may install shall be made in annexed or consolidated sections on the same general plan that may be followed within the present City boundaries. (7) Annexed or consolidated territory desiring to connect with the outfall sewer to the sea shall have the right to do so, and the City shall increase the capacity of the outfall sewer from time to time, as may be necessary. Respectfully submitted, (Signed) H. H. ROSE, President. MARTIN F. BETKOUSKI, Vice-President. GEORGE B. HARRISON, Secretary. RALPH L. CRISWELL, GEORGE H. DUNLOP, MILES GREGORY, LESLIE R. HEWITT, IRVING H. HELLMAN, ORRA E. MONNETTE, f Municipal Annexation Commission. — 8 —