HomeMy WebLinkAbout18 Glenshire Water System Agenda Item # 18
TRUCKEE DONNER
Public Utility District
WORKSHOP
To: Board of Directors
From: Mary Chapman
Date: July 02, 2008
Subject: Glenshire Water System Financial Recap
1. WHY THIS MATTER IS BEFORE THE BOARD
This workshop item is to provide the Board with an update of the status of the
Glenshire water system acquisition to date.
2. HISTORY
In 2001, the District acquired the Glenshire Mutual Water System (GMWS) and its
customers. In order to connect the GMWD pipelines and customers to the District's
system, capital improvements had to be completed. These projects included pipeline
extensions and replacements, pumping capacity increase at the District's Glenshire
Drive Well, well abandonment and other system upgrades. The GMWD customers
agreed to reimburse the District for these costs.
The GMWD transferred all of its assets to the Truckee Donner PUD. Included in the
asset transfer was cash and land. Some of the land has been sold. The cash and
land sales proceeds have been used to offset the cost incurred by the District to install
and upgrade capital assets. The District also financed a portion of the upgrade cost
with both a 15 year external loan in the amount of $1,740,000 and an internal loan in
the amount of $171,158. To pay off the external loan, the Glenshire customers were
assessed a $10.75 surcharge on their monthly water bills.
Attached is a recap of the financial activity from 2001 to present.
3. NEW INFORMATION
The District has received inquiries of interest to purchase the remaining Glenshire
property. Once sold, the proceeds will be used to reduce the amount owed to the
District by the Glenshire customers. Staff will bring this item back to the Board for
your consideration as to whether the District will apply the loan sale proceeds to the
outstanding debt or reduce the monthly surcharge.
4. FISCAL IMPACT
There is no immediate fiscal impact created by this agenda item.
5. RECOMMENDATION
This is a workshop. No action is required.
Mary Cha an Mi ael D. Holley
Administrative Services Manager General Manager
GLENSHIRE ACQUISITION AND EXPENDITURE RECAP: May 31, 2008
SOURCE OF FUNDS:
Transfer of assets to the District (cash, equipment, land sales, other) $1,171,358
Loan Proceeds - External Loan 1,740,000
Internal Loan 142,908
Surcharge collected through May, 2008 1,045,186
Total Source of Funds 4 452
USE OF FUNDS:
Expenditures on capital improvement projects $3,054,266
Loan payments and interest accruals to date 1,045,186
Total Funds Paid Out $4,099.452
DEBT STATUS:
External Principal Loan Balance—May 22, 2008 $1,249,196
Internal Principal & Interest Balance 43,294
Total Due from Glenshire Customers 12 2 4 0
GLENSHIRE ACQUISITION AND EXPENDITURE RECAP: Through 5/31/2008 Updated 6/26/2008
Part 1 ACQUISITION AND PROJECT COSTS
Plus:
Credit for cash and equipment received from Glenshire $907,648
Credit for land sales- Manchester Drive & Somerset Drive parcels 203,959
Credit for use of Glenshire property for storage through 5/31/07 59,750
Subtotal cash and credits $1,171,358
Less:
Fixed charges for accruals and projects defined in contract between GMWC & District ($571,000)
Charges for additional projects necessary to connect to District water system (2,483,266)
Subtotal project costs ($3,054,266)
Total cash and credits less project costs ($1,882,908)
Plus:
Loan proceeds 1,740,000
Borrowed from Land Sales Trust Fund ($142,908)
Less:
Estimated interest on internal loan from Land Sales Trust Fund thru 5/31/08 (28,249)
Total due to District ($171,158)
Part 2 THE SURCHARGE
Plus:
Monies received from $10.75 per month billing surcharge since 2002 plus interest 2.0.136.87 $1,045,186
Less:
Principal and interest payments on $1,740,000 loan through May, 2008 (917,323)
Surplus in Glenshire restricted fund $127,863
Net difference between amount owed to District less surplus in Glenshire restricted ($43,294)
fund (Part 1 total less Part 2 total)
Part 3 THE LOAN
Balance on Municipal Services Loan#1552 for$1,740,000 at 5111/08 2..224.86 ($1,249,196)
(Loan taken out in 11/2002 - 5.11% - 15 years- pays off in 2017)
Part 4 CURRENT STATUS
Total amount owed on Glenshire acquisition as of 5/31/08 ($43,294#2 above+ ($1,292,490)
$1,249,196#3 above)
Glenshire External Loan $1,740,000 Principal Repayments to Date:
12.0.224.86 $1,740,000.00
Principal 2/11/2003 (19,468.00)
Principal 5/11/2003 (19,705.65)
Principal 8/11/2003 (19,968.44)
Principal 11/11/2003 (20,223.54)
Total 2003 Payments (79,365.63) (79,365.63)
Principal 2111/2004 (20,447.44)
Principal 5111/2004 (20,728.60)
Principal 8/11/2004 (21,008.69)
Principal 11/11/2004 (21,245.71)
Total 2004 Payments (83,430,44) (83,430,44)
Principal 2/1112005 (21,535.65)
Principal 5111/2005 (21.804.49)
Principal 8/11/2005 (22,098.29)
Principal 11/11/2005 (22,374.28)
Total2005 Payments (87,812.71) (87,812.71)
Principal 2/11/2006 (22,660.00)
Principal 5/1 1 12 006 (22,962.22)
Principal 8/11/2006 (23,252.35)
Principal 11/11/2006 (23,552.69)
Total 2006 Payments (92.427.26) (92,427.26)
Principal 2/11/2007 (23,856.97)
Principal 5/11/2007 (24,161.83)
Principal 8/11/2007 (24:453.43)
Principal 11/11/2007 (24,783.05)
Total 2007 Payments (97;255,28) (97,255.28)
Principal 2/11/2008 (25,089.20)
Principal 5/11/2008 (25,423.92)
Principal 8/11/2008 0.00
Principal 11/11/2008 0.00
Total 2008 Payments (50..513,12) (50,513,12)
Loan Balance @ 3/31/2008 1,249,195.56 $1,249,195.56
GLENSHIRE WATER SYSTEM SINKING FUND STATICS REPORT: Charges through 5/31/08 Updated 6/26/08
Total
Transfer in from Glenshire Mutual Water Company to District at the close of escrow: $756,902.72
Subsequent Receipts: Interest income through 12/31/04 7,815.60
Credit for February, 2002 billings 56,416.54
Credit for materials&equipment acquired by the District 58,478.00
Credit for reimbursement of fees on deposit with Truckee Sanitary District 12,000.00
Credit for balance in Glenshire checking account transferred to District 5,545.95
Credit for St Comp insurance refund-deposited 157.74
Credit for surplus equipment-deposited 8/9/02 5,918.35
Credit for insurance refund-deposited 8/23/02 4,079.00
Credit for Sierra Chemical Co refund-deposited 9/20/02 13.50
Credit for income tax refund-deposited 10/14/02 321.00
MSG loan to build transmission pipeline, upgrade Glenshire well,construct pump station 1,740,000.00
Proceeds from land sale-Manchester Drive parcel 179,900.00
Proceeds from land sale 10449 Somerset Drive#40-120-28 property 24,601.25
District credit for use of Glenshire property as storage site 59,750.00
Balance of funds received&loan proceeds $2,911,899.65
Transfer from Glenshire Sinking Fund to reimburse the District's General Fund:
(Fixed charges defined in contract between GMWC&District)
($334,000.00)
1) Buy-in to well
2) Truckee River bridge crossing($44,536.08 for Plant+$6,463.92 for 680.00-20) ( ,000.00)
` 3) Accrued employee benefits (19,000.00)
j (67,000.00) Note 2
4) New storage tank
5) Storage tank repair (50,000.00) Note 2
E 6) Service line replacement (50,000.00) Note 2
($571,000.00)
Subtotal transfers made after signing of contract
Subtotal after above transfers $2,340,899.65
i
Work order charges(CWIP) incurred through 12/31/04; reimbursed to District:
Glenshire Transmission Pipeline (Credit for upsizing 12"to 16") WO#02-74564 ($1,483,584.29)
j Glenshire Transmission Pipeline @ Bridge WO#02-74565 0.00
€ Glenshire-Upgrade Glenshire Drive Well (Charge 1/3 of total cost) WO#02-74568
120,090.57
€ Glenshire Water Misc Costs WO#02-74574 (23•664,84)
Glenshire Pipeline Replacement 2003 WO#02-74584 (450,806.89)
Glenshire Well Abandonment WO#03-74595 (133,552.69)
( Glenshire Booster Pump Station WO#03-74598 (269,426J9)
( Glenshire Electric Department Charges {2(542.0 43)
(
Glenshire-costs incurred in the sale Manchester Drive parcel WO#03-54006 .03?
Total work order charges approved for reimbursement to District ($2,483,808.19)
Running Total ($142,908.54)
Temporary loans from District-Land Sales Trust Fund $94,856.00
92i13n 5,551.04
GLENSHIRE WATER SYSTEM SINKING FUND STATUS REPORT: Charges through 5/31/08 Updated 6/26108
12/31/2002 12/31/2003 12/3
Tr:rn-;',er in trorr Glenshire Mutual Water Company to District at the close of escrow: 6 $756,902.72 $0.00
Subsequent Receipts: Interest income through 1Z131/04 9 5,501.97 2,313.63
Credit for February,2002 billings 7 56,416.54 0.00
Credit for materials&equipment acquired by the District 7 58,478.00 0.00
Credit for reimbursement of fees on deposit with Truckee Sanitary District 7 12,000.00 0.00
Credit for balance in Glenshire checking account transferred to District 1 5,545.95 0.00
Credit for St Comp insurance refund-deposited 1 157.74 0.00
Credit for surplus equipment-deposited 8/9102 1 5,918.35 0.00
Credit for insurance refund-deposited 8/23/02 1 4,079.00 0.00
Credit for Sierra Chemical Co refund-deposited 9120/02 7 13.50 0.00
Credit for income tax refund-deposited 10/14/02 7 321.00 0.00
MSG loan to build transmission pipeline,upgrade Glenshire well,construct pump station 1,614,695.23 125,304.77
Proceeds from land sale-Manchester Drive parcel 0.00 0.00 179
Proceeds from land sale 10449 Somerset Drive#40-120-28 property 0.00 0.00
District credit for use of Glenshire property as storage site 10,400.00 10,800.00 11,
Balance of funds received&loan proceeds $2,530,430.00 $138,418.40 $190,
Transfer from Glenshlre Sinking Fund to reimburse the District's General Fund:
(Fixed charges defined in contract between GMWC&District)
1) Buy-in to well 5 ($334,000.00) $0.00
2) Truckee River bridge crossing($44,536.08 for Plant+$6,463.92 for 680.00-20) 5 (51,000.00) 0.00
3) Accrued employee benefits 5 (19,000.00) 0.00
4) New storage tank 4 (67,000.00) 0.00
5) Storage tank repair 4 (50,000.00) 0.00
6) Service line replacement 4 (50,000.00) 0.00
Subtotal transfers made after signing of contract ($571,000.00) $0.00
Subtotal after above transfers $1,959,430.00 $138,418.40 $190,
Work order charges(CWIP)incurred through 12/31/04;reimbursed to District:
Glenshire Transmission Pipeline(Credit for upsizing 12"to 16") WO#02-74564 ($1•r14,314.05) $7,666.51) :$31
Glenshire Transmission Pipeline®Bridge WO#02-74566 (24,303.73) 0.00 24,
Glenshire-Upgrade Glenshire Drive Well(Charge 1/3 of total cost) WO#02-74568 ;4u,625.05) i,79.465.52)
Glenshire Water Misc Costs WO#02-74574 ;19,050 00) 14,614 8,1)
Glenshire Pipeline Replacement 2003 WO#02-74584 0.00 450.097.28)
Glenshire Well Abandonment WO#03-74595 0.00 141,431.77) 7
Glenshire Booster Pump Station WO#03-74598 0.00 +191,926.49) 137
Glenshire Electric Department Charges 0.00 0.00 (2
Glenshire-costs incurred in the sale Manchester Drive parcel WO#03-54006 0.00 0.00
Total work order charges approved for reimbursement to District ($1,528,292.83) ($815,202.41) ($140
Running Total $431,137.17 ($245,646.84) ($195
Temporary loans from District-Land Sales Trust Fund $0.00 $94,856.00
6/30/2003 0.00 5,551.04
9/30/2003 0.00 52,932.20
9/30/2003 0.00 462,253.35
10/31/2003 0.00 4,237.17
11/30/2003 0.00 156,175.21
12/31/2003 0.00 13,561.05
12/31/2003 0.00 74.402.84 7
It was determined that Glenshire was not 0.00 i:31 250.00)
due these credits;rec'd$597,271.12 instead. 0.00 0.00 i 63
4/31/2004 0.00 0.00 179
5/31/2004 0.00 0.00 47
10/31/2004 0.00 0.00
7/31/2003 0.00 0.00
12/31/2004 Proceeds from land sale$179,900less$542.03 in costs 0.00 0.00 1179
2/23/2006 Proceeds from Somerset land sale 0.00 0.00
0.00 832,718.86 (8
Adjustment to amount borrowed from LSTF;this portion of the loan will be paid for out
of the water facilities fees account after the Board approves the transfer-Transfer of
$597.271.12+$96,950.05 accrued interest 5-2-07. 0.00 `587.072.C2) "5C
0.00 245,646.84 i51
Accrued interest through 5/31/08-Final adjmt to be done once S is received from land sale
Balance in Sinking Fund at the end of each year(costs are greater than funds available) $431,137.17 ($431,137.17) ($✓?
Transactions Pending: t) C ... ....01; 1 R.b;;a a. G^x:)a`o•:my a.= ;;t-r-ses.
S.c:r�,
Notes: 1)In 912002,we began billing Glenshire customers$10.75 per month to cover the principal&interest payments
on the MSG loan for$1,740,000:as of 1;6/03 all loan proceeds have been paid out:loan repayment
began in 3/2003.All monies billed have been set aside in account 2.0.136.87.Surplus in the fund as of 5/31108
$127,863 since payments for$10.75 started before payments to MSG began.Double check surplus before
using it to reduce the$10.75.
2) Highlighted items-future projects-dollars transferred to water general fund 10/211102 per PLH and ET;
$67.000 was reversed out of the water general fund and moved to water facilities fees 12/31/04. -
9/30/2003 O;e'VJL.ZU
9/30/2003 462,253.35
10/31/2003 4,237.17
11/30/2003 156,175.21
12/31/2003 13,561.05
81,703.82
12/31/2003
It was determined that Glenshire was not (31,250.00)
due these credits;rec'd$597,271.12 instead. (63,750.00)
4/31/2004 179,664.29
5/31/2004 47,487.99
10/31/2004 651.35
7/31/2003 (184,59)
12/31/2004 Proceeds from land sale$179,900 less$542.03 in costs (179,357.97)
2/23/2006 Proceeds from Somerset land sale (24,60125)
$799,929.66
t
Adjustment to amount borrowed from LSTF;this portion of the loan will be paid for
out of the water facilities fees account after the Board approves the transfer-Transfer
r of$597,271.12+$96,950.05 accrued interest 5-2-07. (657,021,12)1429
r 42,908.54
r
Accrued interest through 5131MO-FiRal adimt to be done once$is received from land sale 28,249.48 Add to total when c
Balance in Sinking Fund at the end of each year(costs are greater than funds available) ($171,158.O2
400-00G.00'
Transactions Pending: 1) Credit for sale of lands&building. Charge for any land sales expenses.
2) Once land is sold,accrued interest on arnount due LSTF should be calculated through sale date(date District receives proceeds) $R00,000.U0
3) Once The balance of the property it'sold,an adjustment to the$10,75 per month charge will to made.
4) Accumulated balance in the loan payment reserve fund can also be used to lower payment further.
I
Notes: 1) In 9/2002,we began billing Glenshire customers$10.75 per month to cover the principal&interest payments
on the MSG loan for$1,740,000;as of 1/6/03 all loan proceeds have been paid out;loan repayment
began in 3/2003. All monies billed have been set aside in account 2.0.136.87. Surplus in the fund as of 5/31/08
$127,863 since payments for$10.75 started before payments to MSG began. Double check surplus before
using it to reduce the$10.75.
2) Highlighted items-future projects-dollars transferred to water general fund 10/28/02 per PLH and ET;
$67,000 was reversed out of the water general fund and moved to water facilities fees 12/31/04.
2004 12/31/2005 12/31/2006 12/31/2007 3/31/2008 Total
5U.00 $0.00 $0.00 $0.00 $0.00 $756,902.72
0.00 0.00 0.00 0.00 0.00 7,815.60
OAO 0.00 0.00 0.00 0.00 56,416.54
0.00 0.00 0.00 0.00 0.00 58,478.00
0.00 0.00 0.00 0.00 0.00 12,000.00
0.00 0.00 0.00 0.00 0.00 5,545.95
0.00 0.00 0.00 0.00 0.00 157.74
DAO 0.00 0.00 0.00 0.00 5,918.35
0.00 0.00 0.00 0.00 0.00 4,079.00
0.00 0.00 0.00 0.00 0.00 13.50
0.00 0.00 0.00 0.00 0.00 321.00
0.00 0.00 0.00 0.00 0.00 1,740,000.00
00.00 0.00 0.00 0.00 0.00 179,900.00
0.00 0.00 24,601.25 0.00 0.00 24,601.25
COO 11,400.00 11,400.00 4,750.00 0.00 59,750.00
0.00 $11,400.00 $35,001.25 $4,750.00 $0.00 $2,911,899.65
10.00 $0.00 $0.00 $0.00 $0.00 ($334,000.00)
0.00 0.00 0.00 0.00 0.00 (51,000.00)
0.00 0.00 0.00 0.00 0.00 (19,000.00)
0.00 0.00 0.00 0.00 0.00 (67,000.00)Note 2
0.00 0.00 0.00 0.00 0.00 (50,000.00)Note 2
0.00 0 00 0.00 1.00 0.00 (50,000.00)Note 2
;0.00 $0.00 $0.00 $0.00 $0.00 ($571,000.00)
0.00 $11,400.00 $36,001.25 $4,750.00 $0.00 $2,340,899.66
0,,'3) $0.00 $0.00 $0.00 $0.00 E$1:183 b84.29)
G.73 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 020,090.57)
0.00 0.00 0.00 0.00 0.00 23,664 84)
9.61) 0.00 0.00 0.00 0.00 ;453,806.89)
'9.08 0.00 0.00 0.00 0.00 E 133.552 69)
30) 0.00 0.00 0.00 0.00 t269,426.79)
09) 0.00 0.00 0.00 0.00 (2.140.09)
'03) 0.00 0.00 0.00 0.00 ,542.03)
2.95) $0.00 $0.00 $0.00 $0.00 ($2,483.808.19)
;9.79) ($183„659.79) ($147,658.54) ($142,908.54) ($142,908.54) ($142,908.54)
10.00 $0.00 $0.00 $0.00 $0.00 $94,856.00
0.00 0.00 0.00 0.00 0.00 5,551.04
0.00 0.00 0.00 0.00 0.00 52,932.20
0.00 0.00 0.00 0.00 0.00 462,253.35
0.00 0.00 0.00 0.00 0.00 4,237.17
0,00 0.00 0.00 0.00 0.00 156,175.21
0.00 0.00 0.00 0.00 0.00 13,561.05
,0.98 0.00 0.00 0.00 0.00 81,703.82
0.00 0.00 0.00 0.00 0.00 431,2150100)
O�.i0} 0.00 0.00 0.00 0.00 3.75,3.0()
4.29 0.00 0.00 0.00 0.00 179.664.29
7.99 0.00 0.00 0.00 0.00 47,487.99
1.35 0.00 0.00 0.00 0.00 651.35
159) 0.00 0.00 0.00 0.00 (184.69)
7.97) 0.00 0.00 0.00 0.01O 079,357.97?
1)0(11 000 t24.601.25) 0.00 0.00 25)
7.95) 0.00 ,24k0l25) 0.00 0.00 $799,929.66
7 05) (3,212
05) ;a 1,400. =); i 1 750.00) 0.00 (E57.021.12)
5.00) O.ZI .05) 36.001 25) (4,750.00) 0.00 142,908.54
26,63626 1,613.22 28,249,48-add to total when Cl(
IM $8,197.95 $0.00 $0.00 $0.00 ($171,158.02)
s4oa,oao.00