HomeMy WebLinkAbout4 Glenshire Water System upgrade Agenda Item #
x Public Utility District
Memorandum
To: Board of Directors
From: Peter Holzmeister
Date: June 14, 2002
Subject: Glenshire water system upgrade rate component
You will recall that in the acquisition of the Glenshire water system, the Glenshire water
customers are required to pay for the system upgrade through a water rate that contains
a Glenshire water system upgrade rate component. The Board recently approved loan
documents to borrow $1,740,000 at 5.98% for fifteen years to pay for improvement to
the Glenshire system.
At this point we are working with estimates of costs. As the actual costs are determined
the need for financing will change, either up or down. Also, as we sell property and add
new customers to the Glenshire system the financing will change. We will end up
reviewing the Glenshire rate component each year.
The principal and interest payments on a financing of$1,740,000 for fifteen years totals
$177,317.60 per year, divided by 1,375 current active customers, divided by twelve
months equals $10.75 per month. Therefore, I am recommending that the water rate
component applicable to Glenshire customers should initially be $10.75 per month.
I have attached a draft ordinance establishing the Glenshire Water System Upgrade
Rate Component at $10.75 per month. Since this is an ordinance increasing a rate you
need to hold a public hearing before you can adopt it.
RECOMMENDATION: I recommend that the Board schedule a public hearing for July
17, 2002 to receive written and oral comments on the proposed ordinance to establish
the Glenshire Water System Upgrade Rate Component at $10.75 per month.
"IRIUCKEE DONNER
f Public Utility District
Ordinance No. 2002-
Establishing a Glenshire Water System
Upgrade Rage Component
WHEREAS, the Board of Directors of the Truckee Donner Public Utility District,
hereinafter referred to as District, has entered into an agreement with the Glenshire
Mutual Water Company for acquisition of the Glenshire water system; and
WHEREAS, the Glenshire water system is experiencing water quality and quality
problems; and
WHEREAS, the agreement requires that the Glenshire water system customers pay he
cost of water system upgrades by means of a Glenshire Water System Upgrade Rate
Component; and
WHEREAS, the Board of Directors of the Truckee Donner Public Utility District has
determined that the Glenshire Water System Upgrade Rate Component should be set
at $10.75 per month; and
WHEREAS, a public hearing was held on July 17, 2002 to receive written and oral
comments from the public regarding the proposed ordinance establishing the Glenshire
Water System Upgrade Rate Component;
NOW, THEREFORE, BE IT ORDAINED by the Board of Directors of the Truckee
Donner Public Utility District as follows:
1. Effective with the effective date of this ordinance, all
portions of prior ordinances and/or resolutions that are
inconsistent with the provisions of this ordinance are hereby
repealed insofar as they are inconsistent.
2. Glenshire Water System Upgrade Rate Component:
There is hereby established a Glenshire Water System
Upgrade Rate Component in the amount of$10.75 per
month applicable to all customers within the territory of the
former Glenshire Mutual Water Company.
3. This Glenshire Water System Upgrade Rate Component
shall be a monthly charge that is in addition to any other
monthly water charge in effect for customers of the District.
4. If no protest is made pursuant to Public Utilities Code Section 16078,
then this ordinance shall be effective as of the date it was adopted by
the Board of Directors, but the rate adjustments made by this ordinance
shall become effective with the billing cycle commencing in February
2002.
5. The Clerk of the District shall immediately cause a copy of this
ordinance to be published in a newspaper of general circulation and
posted in three places within the District.
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 XX day of July 2002 by the following
roll call vote:
AYES:
NOES:
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
By
Nelson Van Gundy, President
ATTEST:
Peter L. Holzmeister, District Clerk