Ordinance No. 256WJML:KIJ:v 9-15-75-15
ORDINANCE NO. ~~
AN ORDINANCE DETERMINING TO ACQUIRE PUBLIC
UTILITY WORKS OF THE TAHOE SIERRA WATER
COMPANY, INC., AND AUTHORIZING THE EXECUTION
OF AGREEMENTS THEREFOR
BE IT ENACTED, by the Board of Directors of the South Tahoe
Public Utility District, E1 Dorado County, California, that
WHEREAS, pursuant to Section 16841 of the Public Utilities
Code of the State of California and by its Resolution No. 1872,
adopted on the 8th day of January, 1974, this Board has determined
that the public interest and necessity of the District demand the
acquisition of certain public utility works known as the complete
water system of the Tahoe Sierra Water Company, hereinafter referred
to as the "Works";
WHEREAS, pursuant to Section 16842 of the Public Utilities
Code of the State of California, this Board has procured plans
and estimates and negotiated for offers for sale to the District
of said Works; and
WHEREAS, there has been presented to this Board (i) a form
of agreement entitled "Agreement for Sale and Purchase of the
Stock of Tahoe Sierra Water Company" which'agreement is dated
September 18, 1975, and (ii) an agreement entitled "Assumption
Agreement", directed to Pacific Mutual Life Insurance Company,
both of which agreements are on file in the office of the Clerk
of the District, more particularly describe said Works, and are
hereby incorporated herein by reference;
NOW, THEREFORE, it is hereby DETERMINED and ORDERED, as
llows:
1. That it is for the best interests of the District that
the District acquire said Works.
2. That the proposed cost of acquisition of said Works is
the principal amount of Six Hundred Seventy Thousand Nine Hundred
and Twenty-One Dollars ($670,921), plus interest as set forth in
Section 3 hereof, and plus the unpaid principal amounts as of the
transfer date of the obligations to be assumed under the Assumption
Agreement, plus interest thereon as set forth in Section 3.
3. That the proposed method and manner by which said cost
of acquisition shall be paid shall be by the payment, from the
revenues described in Section 4 hereof, of the following amounts:
A) Equal semiannual payments of principal and interest
on the assumed obligations, estimated at $ each, with
interest computed at seven percent (7%) per annum (representing
an estimated total payment of $ ) with the first payment
to be on or about April 1, 1976, and the final payment on April 1,
1985; and
B) The balance of $670,921 is payable in monthly
installments over a period of twenty (20) years, with interest
computed at the rate of eight percent (8%) per annum, representing
total annual payments as follows:
Year Total Annual Payment
1976
1977
1978 to 1987, inclusive
1988 to 1992, inclusive
1993 to 1995, inclusive
75,000
60,000
65,000
70,000
80,000
and representing a total payment over the 20-year period of
$1,375,000.
All of said payments are subject to provisions for prepayment
and acceleration as set forth in said agreements.
4. That said cost of acquisition of said Works can and will
be paid out of the revenues of the District derived from operation
of the water system acquired from the Company and District facili-
ties revenues as defined in the Agreement for Sale and Purchase of
the Stock of the Tahoe Sierra Water Company, Inc.
5. That it is hereby determined to acquire such Works.
6. That the President of the District be and he is hereby
authorized and instructed to sign each of the aforesaid agreements
on behalf of the District, in duplicate, and the Clerk and ex-
officio Secretary be and he is hereby authorized and instructed to
countersign each of said agreements, on behalf of the District, and
to affix the seal of the District thereto.
7. That this Ordinance shall take effect 30 days after its
final passage; that at least one week before the expiration of
said 30 days, copies of this Ordinance shall be posted at three
public places in the District; and that this Ordinance shall be
published once a week for two successive weeks in the Tahoe Daily
Tribune, ~a newspaper printed and published in the District, with
the first publication to be not less than fourteen days prior to
the expiration of said 30 days.
ATTEST:
President, So~th Tghoe Public
Utility District
Clerk and ex-officio Secretary
I hereby certify that the foregoing Ordinance was duly
and regularly introduced and adopted by the Board of Directors
of the South Tahoe Public Utility District, E1 Dorado County,
California, at a meeting thereof duly held on the 18th day of
September, 1975, by the .following vote:
AYES, Directors:
NOES, Directors:
ABSENT, Directors:
Wakeman, Kortes, Fesler, Hegarty
None
None
Clerk and ex-officio Secretary
(Seal)