Laserfiche WebLink
Future customers for LID's services will move into the service territory as a result of the <br /> River Islands development project, zoned for urban uses within the West Lathrop <br /> Specific Plan ("WLSP," as amended) and River Islands Urban Design Concept("UDC"), <br /> both approved by the Lathrop City Council on January 29,2003. The project site is <br /> currently served on a very limited basis by PG&E for electricity only and by SBC for <br /> voice telecommunications; the River Islands project has not yet begun construction, but is <br /> scheduled to begin in 2006. As new development occurs, new customers will be served <br /> by LID for water and sewer(in cooperation with the City of Lathrop) and electrical <br /> services. Natural gas will be provided by PG&E. <br /> B. Purpose <br /> The purpose of LID remains to provide irrigation and potable water, sanitary sewer, <br /> electrical and telecommunication services to its ultimate service territory. Consistent <br /> with the entitlements approved by the City of Lathrop in January 2003, including the <br /> certified Environmental Impact Report("EIR") for the River Islands development, LID <br /> and River Islands will receive potable water and sanitary sewer services from the City of <br /> Lathrop,consistent with the City's adopted master plans for these utilities. LID will own <br /> water and sewer facilities and it is expected that the City of Lathrop will operate them, <br /> however, LID retains to the authority to operate these utilities should the City not. <br /> As mentioned earlier, LID, through RIPFA, issued two separate financing instruments for <br /> the provision of potable water and sanitary sewer services to LID and the River Islands <br /> development. These bonds totaled over$29 million and ensured sewer and water <br /> services for the urban development associated with River Islands will be available as <br /> needed. These bonds specifically included approximately$22 million for 3 mgd <br /> (approximately 3,500 acre-feet)of potable water from the South County Surface Water <br /> Project. The issuances were provided at a no risk or liability to the City of Lathrop, <br /> which was a critical component for the rationale behind the original formation of LID. <br /> This is due in part,to the River Islands development's obligation(through its <br /> development agreement) to the City of Lathrop to keep the City fiscally neutral, including <br /> the financing of all infrastructures independent of the City. RIPFA may also provide <br /> additional debt financing for electrical and/or telecommunication infrastructure in the <br /> future. <br /> With respect to electrical services,the restructuring of the electrical market has created <br /> uncertainty as to the viability of investor owned utilities and has caused significant <br /> increases in rates to both residential and non-residential customers. LID is in a unique <br /> position to provide efficient and cost effective distribution of electricity to the future <br /> customers of the Stewart Tract area. Although LID is starting from the ground up, it will <br /> be able to purchase power from a variety of sources to ensure lower power acquisition <br /> costs and eventually, over time, lower power distribution costs. Several new publicly <br /> owned electric utilities have been formed in recent years in California. All of these new <br /> utilities offer electric rates at or below the incumbent investor owned utilities rates. <br /> 4 <br />