HomeMy WebLinkAbout11 Donner Lake Water Improvements Agenda Item #
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Staff Report
To: Board of Directors
From: Peter Holzmeister
Date: July 15, 2005
Subject: Financing of Donner Lake water system improvements
Why this matter is before the board: We are about to request bids for
construction of the water tank at Donner Lake. We have no cash left to pay this
contract. It is tie to deal with Donner Lake water system finances and raise cash
to complete the project.
History: The attached spread sheet describes the money spent to date, what we
expect to spend to complete the project, what funds we receive from the
Assessment District and from SRF, and what funds we need to raise to complete
the project.
New information: We need to raise an additional $2,238,332 to complete the
project. This amount exceeds the revenues from the assessment district, so we
need to raise it in another manner. The District has committed to enact a
monthly billing surcharge applicable to Donner Lake to pay the additional cost
(see the attached resolution). We need to perform more detailed analysis of the
costs and current interest rates to quote a firm amount for the monthly surcharge,
but is could be in the range of $10 to $11.
Recommendation: There is no action required of the board on this matter. This
is informational only. By the time we are ready to award bids for construction of
the water tank and hydro-station staff will return to the board with specific
financing proposal and specific monthly surcharge recommendation.
Donner Lake Assessment District
Spent to date $ 14,106,332
Needed to complete job $ 1 ,536,000
Total project cost $ 15,642,332
Assessment District Revenues $ 12,804,000
Sale of land $ 600,000
Deficit $ 2,238,332
Resolution No. 2004 - 04 Public Utility Di'strict
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 $13,275,001, 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$14,307,225;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 bythe 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 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 fourth day of February, 2004 by the following roll call vote:
AYES: Directors Aguera, Hemig, Maass, Sutton and Van Gundy
NOES: None
ABSENT: None
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
limes A. Maass, President
ATTEST:
Peter L. Holzmeister, District Clerk