SETTLEMENT
1. The parties to this Settlement ("Parties") are the Water Branch of the Office of Ratepayer Advocates ("ORA") and Donner Lake Water Company ("DLWC").
2. The Parties agree that no signatory hereto nor any member of the staff of the Public Utilities Commission assumes any personal liability as a result of the Settlement. The Parties agree that no legal action may be brought in any state or federal court, or in any other forum, against any individual signatory representing the interests of either Party, ORA, or its attorneys, or the ORA itself regarding the Settlement. All rights and remedies are limited to those available before the California Public Utilities Commission ("Commission").
3. The Parties acknowledge that ORA is charged with representing the interests of customers of public utilities in the State of California, as required by Public Utilities Code Section 309.5, and nothing in the Settlement is intended to limit the ability of ORA to carry out that responsibility.
4. The Parties agree to support this Settlement inasmuch as their negotiations have resulted in the resolution of all issues raised in ORA's report, dated March 21, 2001.
5. The Parties recognize that the California Department of Health Services ("DHS") requires that DLWC immediately begin a project to rebuild portions of its system. The project includes replacing the distributional lines on the north, east, and south sides of Donner lake, constructing a facility for drawing water from the lake, and replacing tanks and booster stations. It would be phased over a period of five years and cost $15,514,400. Funds for this project have been allocated under the Safe Drinking Water State Revolving Fund ("SRF"),that is administered by the Department of Water Resources ("DWR"). These funds would not be available, however, until DLWC completes its application and DHS approves it.
6. The Parties agree that, due to the condition of DLWC's system, this project should begin as soon as possible. In advance of a loan under the SRF, therefore, the Commission should authorize DLWC to secure temporary financing in the form of a loan or loans not exceeding $4.5 million and carrying a rate of interest not exceeding 10%. Any such loan should require periodic payment of interest, with the full principal to be payable on or before December 31, 2001, and should be made incrementally as elements of the project are completed. Any lender should be required to honor checks for costs of the project that bear the signature of a representative of DLWC and the Commission's Water Division. The designated representative of the Water Division should obtain confirmation from DHS that the work was inspected and determined to be properly performed at a reasonable cost and was necessary to achieve compliance with each outstanding order of DHS.
7. The Parties agree that DLWC should be authorized to file an advice letter for authority to place into effect a surcharge of $27 per month applicable to each customer for the purpose of paying interest to any lender and that the funds collected should be placed in an account with a fiscal agent established for that reason at a bank approved by DHS and DWR with all surcharges to be deposited by DLWC within 10 days of their receipt. In particular, only that fiscal agent should be authorized to make any payment to any lender providing temporary financing. Any balance remaining in the account when temporary financing is replaced by the loan from the SRF should be applied to repayment of the permanent financing.
8. The Parties agree that DLWC should be authorized to enter into an agreement for a loan from the SRF in an amount not to exceed $15,514,400, of which not more than $4.5 million should be used to retire any outstanding interim financing, and to file an advice letter to establish a new surcharge to replace the surcharge established for temporary financing when the amount, rate of interest, term, and schedule are available for the loan that DHS eventually approves.
9. DLWC agrees to use its best efforts to complete its application to DHS and secure a loan from the SRF at the earliest possible date.
10. The Parties agree that, if funds do not become available from the SRF due to any unforeseen circumstance, DLWC should be authorized to file an advice letter for authority to refinance the balance of the temporary financing with the same or other lenders in such a manner and at such terms as may be approved by the Commission and subject to the same procedures for review.
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DONNER LAKE WATER COMPANY |
WATER BRANCH OF THE OFFICE OF RATEPAYER ADVOCATES |
By /s/ ROBERT S. FORTINO |
By /s/ DANIEL R. PAIGE |
ROBERT S. FORTINO President P.O. Drawer 5172 Chico, CA 95927 (530) 894-1100 |
DANIEL R. PAIGE Program Supervisor320 West 4th Street, Suite 500 Los Angeles, CA 90013 (213) 576-7048 |
Dated April 25, 2001 |
Dated April 25, 2001 |
(END OF ATTACHMENT 1)
************ APPEARANCES ************ |
Norman H. Knoll |
********* INFORMATION ONLY ********** |
(END OF ATTACHMENT 2)
