HomeMy WebLinkAbout9 Donner Lake Water System Agenda Item
Memorandum
To: Board of Directors
From: Peter Hoizmeister
Date: January 30, 2004
Why this matter is before the board:
This matter involves adoption of a resolution)of intent to adopt a water;rate surcharge
relating to reconstruction of the Donner Lake water system. Only the board can adopt
such a resolution.
History:
Ed Taylor discussed the status of the Donner Lake Water System Reconstruction
Project at the last meeting. He discussed the fact that the cost to complete the project
will exceed the amount of funds that will be raised through the Donner Lake Assessment
District. He also discussed the fact that we will not receive State;Revolving Funds until
the State of California knows how the loan will be repaid. We need to,provide the SRF
administrators with an official statement from the board of directors that there is a
specific method to raise the funds to repay the loan.
At the last meeting, the board agreed to set a surcharge on the Donner Lake water rate
to cover the cost not covered by the assessment district.
New information:
Attached for your review is a draft resolution that expresses the intent of the board of
directors to adopt an ordinance raising sufficient money to repay any loans associated
with reconstruction of the Donner lake water system.
I suggest that we not begin the process of adopting such an ordinance until we know the
actual final cost of the project. At this time, we have only estimates of the cost of the
remaining projects.
Recommendation:
I recommend that the board adopt the resolution expressing the intent of the Board of
Directors of Truckee Donner Public Utility District to enact a water rate component for
the purpose of paying principal and interest costs for the state revolving fund loan for
acquisition and reconstruction of the Donner Lake water system.
i► 1!
R solu ion No . 2004- XXX
Expressing the Intent of the Board of Directors of Truckee Donner Public Utility
District to Enact a Water Rate Component for the Purpose of Paying Principal and
Interest Costs for the State Revolving Fund Loan for Acquisition and Reconstruction
of the Donner Lake Water System
WHEREAS the Truckee Donner Public Utility District, hereinafter referred to as`District' has acquired the Donner
Lake Water System, hereinafter referred to as "Water System"; and
WHEREAS the Water System was in catastrophic failure mode at the time the District acquired it such that it was in
need of virtually complete reconstruction; and
WHEREAS the property owners within the service territory served by the water system approved formation of an
assessment district and voted to assess their property in the aggregate the amount of$XXXXX,for the purpose of
acquisition and reconstruction the water system; and
WHEREAS the actual costs to acquire and reconstruct the water system are estimated to total
$XXXX; and
WHEREAS the District has applied for a loan through the California State Revolving Fund, hereinafter referred to as
SRF, and will secure other loan funds to cover the total cost of acquisition and reconstruction of the water system;
and
WHEREAS the aggregate amount of funds approved by the assessment district formation will not be sufficient to
repay the entire principal amount of the loans; and
WHEREAS the California Department of Water Resources, administrators of the SRF program, require that a
funding source sufficient to repay the entire principal and interest related to the SRF loan be identified by the District;
NOW THEREFORE BE IT RESOLVED by the Board of Directors of the District as follows:
1. The revenues from the assessment district are pledged first to repay the SRF loan.
2. It is the intent of the Board of Directors of Truckee Donner Public Utility District to adopt an ordinance establishing
a surcharge to the monthly water rates applicable in the service territory of Donner Lake that is sufficient to pay the
cost of principal and interest on the any other loan secured by District to pay the remainder of the cost to acquire and
reconstruct the water system, to the extent that the assessments approved in formation of the Donner Lake
Assessment District are insufficient.
PASSED AND ADOPTED by the board of Directors of the Truckee Donner Public Utility District at a meeting duly
called and held within the District on the 18th day of February, 2004 by the following roll call vote:
AYES:
NOES:
ABSENT:
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
James A. Maass, President
ATTEST:
Peter L. Holzmeister, District Clerk