HomeMy WebLinkAbout13 Donner Lake Assessment, Glenshire Surcharge Agenda Item # 13
Public Utility District
WORKSHOP
To: Board of Directors
From: Robert Mescher
Date: May 21, 2014
Subject: Review of:
a) Donner Lake Assessment District
b) Glenshire Surcharge
c) Other Area Improvement Funds
1. WHY THIS MATTER IS BEFORE THE BOARD
This workshop is intended to update the Board on the status of the Donner Lake
Assessment District, the Glenshire surcharge and the other area improvement funds.
2. HISTORY
Donner Lake Assessment District
In 2001, the District acquired the Donner Lake Water Company by initiating an
eminent domain lawsuit. As a part of the takeover, the District replaced the entire
water system, which cost approximately $15.6 million and was completed in 2006. The
District initially estimated the replacement cost to be $13 million. The Donner Lake
property owners agreed to reimburse the District for the full costs of the replacement.
Therefore, an assessment was placed on each Donner Lake homeowner's property for
a pro-rata share of the $13 million payable immediately or with an option to pay over
20 years. The assessment is collected by Nevada County and Placer County on behalf
of the District and is secured by the Donner Lake property owners. A monthly $6.65
water system upgrade surcharge is paid by the Donner Lake customers to reimburse
the District for the $2.6 million cost incurred in excess of the assessment.
Glenshire Surcharge
The District received cash and other assets as part of its acquisition of the Glenshire
Mutual Water Company. Also, the District will continue to receive a monthly water
system upgrade surcharge from Glenshire residents until November 30, 2017. This
cash is utilized to pay the installment loan related to the Glenshire water system
improvements as specified in the terms of the acquisition agreement.
In 2011, the District sold a parcel from the Glenshire Mutual Water Company assets.
The net proceeds of $294,940 were transferred to the Glenshire Escrow Account and
the monthly water system upgrade surcharge was reduced from $10.75 to $4.75.
Other Area Improvement Funds
Sewer Assessment District 2 (SAD 2) - In 1969, Nevada County issued bonds for
utility improvements in the Biltz and Armstrong Tracts. On or about 1994, Nevada
County transfered residual funds of about $42,000 to Truckee Donner PUD to be used
to maintain the water assets in SAD 2.
Sewer Assessment District 5 (SAD 5) - In 1979, Nevada County issued bonds for
utility improvements in the Gateway area and the area north and adjacent to Truckee
Donner PUD. On or about 1995, Nevada County transfered residual funds of about
$38,000 to Truckee Donner PUD to be used to maintain the water assets in SAD 5.
West River Street Assessment District (WRSAD) - In August 1997, Truckee Donner
PUD assessed parcels on Fox Mead, near West River Street, to provide water
services. As of 1994, the District had about $18,000 of residual funds to be used to
maintain the water assets in WRSAD.
3. NEW INFORMATION
As of December 31, 2013:
• The principal amount due on the long-term debt associated with Donner Lake
Assessment District was $8,636,000 and is amortized through 2026; and
• The principal amount due on the long-term debt associated with Glenshire was
$600,000 and is amortized through 2017; and
• The fund balance of SAD 2 was $17,000 and will be used for future
improvements; and
• The fund balance of SAD 5 was $71,000 and will be utilized this year for
improvements; and
• The fund balance of WRSAD was $35,000 and will be used for future
improvement.
4. FISCAL IMPACT
There is no fiscal impact associated with this workshop.
5. RECOMMENDATION
Review this report and provide comment.
Robert Mescher Michael D. Holley
Administrative Services Manager General Manager