HomeMy WebLinkAbout17 Glenshire Surcharge StatusA• •
TRUCKEE DONNER
Puolic Utility District
WORKSHOP
To: Board of Directors
From: Kathleen Neus
Date: June 01, 2011
Subject: Glenshire Surcharge Status
1. WHY THIS MATTER IS BEFORE THE BOARD
This item is a discussion of how to adjust the Glenshire Area Water Surcharge
assuming a successful close of escrow on the property located at 14630 Glenshire
Drive.
2. HISTORY
In 2002, the District acquired the Glenshire Mutual Water Company (GMWC) and its
customers. In order to connect the GMWC pipelines and customers to the District's
system, capital improvements were needed. These projects included pipeline
extensions and replacements, pumping capacity increase at the District's Glenshire
Drive Well, well abandonment and other system upgrades. The GMWC customers
agreed to reimburse the District for these costs.
The GMWC transferred all of its assets to the District. Included in the asset transfer
was cash and land. The cash and land sales proceeds have been used to offset
costs incurred by the District to install and upgrade capital assets. The District
financed the upgrade cost with two loans, an external 15 year loan of $1,740,000 and
a small internal loan of $246,000. To pay off the external loan, the Glenshire
customers were assessed a $10.75 surcharge on their monthly water bills. Land sales,
lease and surcharge proceeds were used to extinguish the internal loan. The
surcharge is projected to end in 2017.
3. NEW INFORMATION
In February 2009, the internal loan was extinguished with the sale proceeds of the
southern portion of the Glenshire Drive parcel and $33,000 of the accumulated
surcharge.
One remaining parcel, the northern portion of the Glenshire Drive property, was
marketed for sale in 2009, but was removed from the market. The building had been
leased to the Truckee Fire Protection District while Station 95 was being remodeled.
Truckee Fire vacated the premises March 31, 2011. The property was placed back on
the market April 1, 2011.
The District entered into a contract with Brad Peik to purchase the Glenshire property
at the May 4th Board meeting. Assuming a successful escrow, escrow will close on or
before June 3, 2011. In anticipation of a successful close the District sent out a letter
(Attachment 1) to the Glenshire area residents asking how they would prefer the
proceeds to be applied. The options are to either lower the monthly surcharge from
$10.75 to approximately $4.75 per month or to adjust the end date from November,
2017 to approximately March, 2014. The overwhelming response to the letter has
been to lower the monthly surcharge amount.
4. FISCAL IMPACT
There is no direct fiscal impact associated with this workshop item.
Either decision, to lower the monthly amount or shorten the length of the loan would
be revenue neutral to the District.
5. RECOMMENDATION
Receive this report and provide comment.
Michael D. Holley
General Manager
Attachment 1
Truckee Donner Public Utility District
May 12, 2011
Norman Riede
PO Box 9950
Truckee, CA 96162
Subject: Glenshire Water System Upgrade Charge
Dear fellow Glenshire area residents and property owners:
Directors
Joseph R. Aguera
Jeff Bender
J. Ron Hemig
John Hillstrom
Tony Laliotis
General Manager
Michael D. Holley
When the former Glenshire Mutual Water Company (GMWC) customers joined the TDPUD in 2002,
part of the agreement was that any proceeds from the sale of GMWC assets would be applied to the
Glenshire specific debt and resultant Glenshire Water System Upgrade Charge.
The TDPUD has recently entered into escrow for the sale of the last piece of GMWC property. This
property was most recently used as the temporary Glenshire fire station and is located at 14630
Glenshire Drive (APN # 49-011-31). This transaction is expected to be completed by late May, 2011.
A TDPUD Board workshop has been scheduled for 6:OOPM on Wednesday, June 1" during the
regular Board meeting to discuss how to modify the Glenshire Water System Upgrade Charge.
Assuming a successful close of escrow, the basic choice before the Board is, to either lower the
payment amount from $10.75 to approximately $4.75 per month, or adjust the end -date of the
Glenshire Water System Upgrade Charge from November, 2017 to approximately March, 2014.
The Board would like to hear directly from the Glenshire area residents who pay this Water System
Upgrade Charge. We encourage you to attend the meeting in person or provide a written comment
prior to the meeting. Written comments can be sent to Barbara Cahill, TDPUD, 11570 Donner Pass
Road, Truckee, CA 96161 or e-mailed to barbaracahill@tdpud.org.
The final staff report on this item will be available by Friday, May 27th on the TDPUD website
(www.tdpud.org). If you have any questions or would like additional information, feel free to contact
TDPUD's Kathy Neus at 530-582-3922 (kath neus ,tdpud.org).
Respectfully,
Michael D. Holley
General Manager
Truckee Donner PUD
11570 Donner Pass Rd — Truckee, CA 96160 — Phone 530-587-3896 — Fax 530-587-5056— www.tdpud.org