HomeMy WebLinkAbout7 Glenshire Mutual Water Company Agenda Item #
UPublic Utility District
Memorandum
To: Board of directors
From: Peter Holzmeister
Date: March 16, 2001
Subject: Dialogue with Glenshire Mutual Water Company
I have opened a formal dialogue with Mark Thomas, General Manager of Glenshire
Mutual Water Company. Glenshire Mutual is interested in being merged into the
TDPUD water system because of problems they are experiencing with water quality and
water quantity issues. They would like to have a transfer take place in June of this year,
if practicable. They need to send a ballot to their shareholders asking for approval of the
transfer. Approval would require at lease twenty percent of their shareholders to caste
ballots, and they need a majority vote of the ballots caste. They would like this ballot
process to occur in April, if possible.
If the Board of Directors of TDPUD is interested in pursuing this merger, I suggest that
certain important information needs to be gathered and recorded in a document that
would be executed by TDPUD and Glenshire that forms the basis for the transfer. I
believe the document would:
1) Define the condition of the present Glenshire system, identifying any significant
problems that need to be addressed.
2) Define the manner in which the Glenshire system would be integrated into the TDPUD
system, what infrastructure needs to be built, and its cost.
3) A disclosure of any significant business conditions existing at Glenshire, such as
pending law suits, contracts and agreements, commitments to developers, debt
instruments, and the like.
4) A description of certain financial matters, such as their accounts payable, accounts
receivable, cash position, listing of various assets and equipment. I think it may be
advisable to have an audit conducted of their financial records.
5) A description of their records such as customer lists, easements, operating and
maintenance records, and the like
6) The document would state the obligations of Glenshire customers to bear the cost of
the transfer, and the obligation of TDPUD to serve water to Glenshire from the date of
closing.
7) The document would state the terms and conditions under which TDPUD would
accept the Glenshire water system and the projected date for the formal transfer to take
place.
This list is the result of my preliminary thoughts. I have never before been involved in
the acquisition of a water system, so I do not know all the details that need to be
included. We may want to consult with a person who has expertise in these matters so
we do not miss important considerations.
I hope to have additional information by Wednesday evening which I will be able to
share with you at that time.