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Draft interim operating agreement with TSCU would pay district $35,000 monthly; action scheduled for board
Summary
Staff presented a draft interim operating agreement with Thomas Luke Willis Utility Incorporated (TSCU/TSPU) that would have the district operate the system for a flat monthly fee of $35,000, reimburse equipment/material expenses above $500 per occurrence, and handle emergency responses; staff will bring the agreement to the board as an action item next week.
Staff walked the committee through a draft interim operating agreement that would have the district operate the Thomas Luke Willis Utility system pending sale and CPUC approval. Key financial terms presented include a flat monthly operating fee and reimbursements for certain expenses.
"The district will receive a flat fee of $35,000 monthly," said William, describing the interim operating terms and that equipment or material expenses in excess of $500 per occurrence would be reimbursed by TSCU. Staff also explained that outside contracted expenses and emergency services would be addressed under the agreement and that improvements made in anticipation of transfer would be acknowledged. The item will come to the full board next week as an action item; staff discussed invoicing mechanics and customer notification plans during the interim period.
