HomeMy WebLinkAbout6 Surplus Land Trust Agenda Item #
Memorandum
To: Board of Dirctors
From: Peter Holzmeister
Date: April 12, 2002
Subject: Establishing the Surplus Land Trust Fund
At the last meeting we discussed the sale of District-owned land and the possiility of
establishing a fund, to be known as the Surplus Land Trust Fund, which would be able to
provide financing for capital facilities projects constructed by the District. The Board
asked me to draft a proposed policy satisfying the input from the Directors. Attached is
that draft ppolicy and a resoslution.
RECOMMENDATION: I recommend that the Board adopt the resolution establishing the
Surplus Land Trust Fund
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Resolution No. 2002-
Establishing the Surplus Land Trust Fund
WHEREAS the District owns parcels of land that are not needed for District operations and have significant
cash value that can be put to use in a manner beneficial to District customers ; and
WHEREAS the Board of Directors, from time to time, declares said land to be surplus and offers it for sale;
and
WHEREAS the District has ongoing needs to construct capital facilities that benefit District customers over
the long-term; and
WHEREAS the Board wishes to establish a fund to assist in the construction of necessary capital facilities for
the benefit of District customers, and
NOW, THEREFORE, BE IT RESOLVED that the Board of Directors adopts the above recitals as its findings;
and further resolves that a new Chapter 8.03 is adopted within the Code of District Policies as follows:
CHAPTER 8.03
SALE OF REAL ESTATE
Sections
8.03.010 Procedure for sale of District-owned real estate
8.03.020 Establishment of the Surplus Land Trust Fund
8.03.010 Sale of District-owned real estate
Real estate owned by the District shall be sold only after the Board of Directors has adopted a resolution
declaring said land to be surplus to the District's needs. The General manager, or his designee, shall then
have the land appraised and shall follow the provisions of applicable State law in offering land for sale.
8.03.020 Establishment of the Surplus Land Trust Fund
There is hereby established a fund to be known as the Surplus Land Trust Fund. Except as otherwise
provided by Board resolution, all cash proceeds derived from the sale of District-owned land shall be
deposited into the Surplus Land Trust Fund and shall be invested in a manner consistent with District
policy governing the investment of District cash. Interest earned on said investment shall remain with the
Surplus Land Trust Fund.
8.03.020.1 Guidelines for use of Surplus Land Trust Fund
The Board of Directors may, by resolution, authorize a loan from the Surplus Land Trust Fund to finance
the construction of any capital project undertaken by the District. The resolution establishing said loan
shall require that the loan be repaid to the Surplus Land Trust Fund, shall require that interest be paid to
the Fund and set forth the method of calculating the interest, and shall set forth the term of the loan.
8.03.020.2 Loan to be formally recognized on the District's accounting records
Any loan established under the terms of this policy shall be recorded on the District's accounting records
as debt in accordance with generally accepted accounting methods and procedures.
PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held with the District on the
17th day of April, 2002 by the following roll call vote:
AYES:
NOES:
ABSENT:
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
By
Nelson Van Gundy, President
ATTEST:
Peter L. Holzmeister, District Clerk