HomeMy WebLinkAbout2002-05-01 Agenda Packet - Board (25) Agenda Item # I0
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Memorandum
To: Board of Dirctors
From: Peter Holzmeister
Date: Apri126, 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 make some changes in the draft plicy and bring it back for further
consideration. Attached is that revised draft policy. The changes are indicated by
underlining.
RECOMMENDATION: I recommend that the Board adopt the resolution Establishing the
Surplus Land Trust Fund
TRUCKEE DONNER
Public Utility District
411
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 and District policy in
offering land for sale.
8.03.010.1
If persons or entities express an interest in purchasing the property the General Manager shall report that
to the Board and the Board shall determine how to proceed with sale of the property.
8.03.010.2
If no persons or entities express an interest in purchasing the property the General Manager shall report
that to the Board and the Board shall determine the procedure for offering the land for sale to the general
public.
8.03.020 Establishment of the Surplus Land Trust Fund
There is hereby established within each of the District's separate enterprise utilities, 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
corresponding to the enterprise utility that had owned such land. The balance of such Funds 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 corresponding 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 any 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 appropriate 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