HomeMy WebLinkAboutr10369supportofpreliminarydebtfinancingapplicationsforwaterreclamationenergyefficiencyprojectRESOLUTION NO . 10369 (2012 Series)
A RESOLUTION OF THE CITY OF SAN LUIS OBISPO IN SUPPORT O F
PRELIMINARY DEBT FINANCING APPLICATIONS FOR THE WATE R
RECLAMATION ENERGY EFFICIENCY PROJEC T
WHEREAS,the City of San Luis Obispo supports and promotes climate protection,
greenhouse gas reduction, and investment in infrastructure which will save energy and funds ; and
WHEREAS,the City Council positively received a preliminary report related to . the
installation of certain Energy Efficiency and Renewable Energy Upgrades at the Wate r
Reclamation Facility (WRF); and
WHEREAS,the City has entered into an agreement with Pacific Gas and Electric t o
develop an Investment Grade Assessment (IGA) to complete a study, provide a thoroug h
financial breakdown, and partial design of the most efficient cost saving measures at the WRF ;
and
WHEREAS,the full costs and benefits of the WRF Energy Project are not yet known
and it is premature to include the financial impacts of the project in the FY 2012-13 Sewer Fun d
Review and Fund Analysis ; and
WHEREAS,it is expected project costs will require the City to apply for and assum e
some debt financing ; and
WHEREAS,in the interest of timely project funding and in order to take the earlies t
possible advantage of energy efficiencies, reduced maintenance benefits, and the curren t
favorable bidding and construction environment, should the IGA result in a favorable project, th e
City expresses its intent to fully consider the project when the IGA results are available ; and
WHEREAS,the City desires to communicate to lenders and grantors in the interim th e
requisite conditional support necessary for preliminary loan and grant application processing .
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Lui s
Obispo as follows :
SECTION 1 .Support the submission of preliminary loan and grant applications for th e
WRF Energy Project ;
SECTION 2 . Approve Exhibit A : a Proforma of Financial Schedules for the City of Sa n
Luis Obispo's Sewer Fund, exclusively in support of preliminary financing applications and t o
demonstrate the sewer fund's financial position for possible WRF Energy Project debt financing .
R 10369
Resolution No . 10369 (2012 Series )
Page 2
Upon motion of Council Member Carter, seconded by Council Member Ashbaugh, an d
on the following roll call vote :
AYES :
Council Members Ashbaugh, Carter and Smith, Vice Mayor Carpenter an d
Mayor Mar x
NOES :
None
ABSENT : None
The foregoing resolution was adopted this 12 th day of June 2012 .
May an Mar x
ATTEST :
APPROVED AS TO FORM :
04261
Sheryll Sc 'oeder
Interim City Clerk
Attachment 2 (Proforma)
Exhibit A.l
CHANGES IN FINANCIAL POSITION - SEWER FUND PROFORMA
I r,-I 7
1still Hu~~r
Revenues
Investment and Property Revenues 206,500 213,000 128,000
Service Charges
Customer Sale s
Sewer Service Charges 12,493,800 13,152,400 14,266,000
Sales to Cal Poly 471,000 725,000 799,200
Development Impact Fees 169,800 128,600 103,700
Account Set-Up Fees 113,800 115,500 116,400
Industrial User Charges 63,500 65,200 65,700
Connection Charges and Meter Sales 6,700 9,100 9,200
Other Revenue 1,800 45,700 3,600
Total Revenue 13,526,900 14,454,500 15,491,800
Expenditures Capital Expenditur e
Operating Program s
Public Utilities 5,652,300 6,373,700 6,543,100
General Government 1,467,200 1,354,300 1,394,100
Total Operating Programs 7,119,500 7,728,000 7 93720000
Capital Improvement Plan 2,216,400 7,486,400 6 970,00 0
Debt Service 3,191,500 3,245,000 2,995,000
Total Expenditures 12,527,400 18,459,400 17,902,20 0
Other Sources (Uses )
Operating Expenditure Adjustments (64,600)(157,300)(62,900 )
Projected MOA Adjustments 82,00 0
Capital Reserve
Proceeds from Debt Financing Debt Financinc 4,100,00 0
Other Sources (Uses )
Total Other Sources (Uses)(64,600)(157,300)4,119,10 0
Revenues and Other Sources Over (Under)
Expenditures and Other Uses 934,900 (4,162,200)1,708,700
Working Capital, Beginning of Year 9,628,500 10,563,400 6,401,200
Working Capital, End of Year 10,563,400 6,401,200 8,109,900
L'rr~iaction Pn~icc1,n I 'RJonn roccti,~n
149,200 230,800 319,500 358,600 373,900 427,900
15,281,700 15,740,200 16,212,400 16,536,600 16,867,300 17,204,600
856,I00 881,800 908,300 926,500 945,000 963,900
109,000 112,300 115,700 I19,500 123,500 128,200
120,400 123,800 126,900 130,500 134,200 138,200
67,900 69,800 71,500 73,500 75,600 77,900
9,500 9,800 10,000 10,300 10,600 10,900
3,800 3,900 4,000 4,100 4,200 4,300
16,597,600 17,172,400 17,768,300 18,159,600 18,534,300 18,955,900
Start Operational Savino,!
WRF TJosrade Savina s
Start Debt Serviet
6,492,100 6,750,100 6,921,800 7,121,000 7,319,700 7,533,000
1,441,900 1,477,900 1,514,800 1,560,200 1,607,000 1,655,200
7,934,000 8,228,000 8,43600 8,681,200 8,926,700 9,188,200
3,308,500 4,695,000 61263,00 2,500,000 3,550,000 2,500,000
1,304,100 1,302,500 1,300,800 5,421,200 5,418,900 5,375,40 0
12,546,600 14,225,500 71,700,400 16,602,400 17,895,600 17,063,60 0
(65,800)(67,400)(69,100)(71,200)(73,300)(75,500 )
96,900 80,900 68,400 55,500 41,800 27,400
(300,000)(725,000)(930,000)(1,050,000)
54,800,000
31,100 (286,500)54,074,300 (945,700)(31,500)(1,098,100)
4,082,100 2,660,400 142,200 611,500 607,200 794,200
7,458,000 11,540,100 14,200,500 14,342,700 14,954,200 15,561,400
11,540,100 14,200,500 14,342,700 14,954,200 15,561,400 16,355,600
14,836,600
831,20 0
106,00 0
118,00 0
66,600
9,300
3,700
16,133,600
I
6,267,000
1,4 0,600
7,680,600
6 .'0
15,631,400
(64,200)
110,100
(1,200,000)
(1,154,100)
(651,900)
8,109,900
7,458,000
n
162,200
Attachment 2 (Proforma)
Exhibit A.2
PROJECTION ASSUMPTIONS - SEWER FUND PROFORM A
t_~TLriORILS 21) 12-13 _till ;-l4 2014-15 to 21116-17 201 7 -1$20is -to 2o to-2 o
Utilities Service Fees CPI Projections 0.8%1 .4%2 .0%2.8%2.5%2.8%2.8%3 .0 %
Debt Service -State Revolving Fund Loan $1,885,900 $0 $0 $0 $0 $0 $0 $0
Debt Service - Energy Conservation Projects $283,800 $0 $0 $0 $0 $0 $0 $0
Debt Service - 2009 Public Safety Radio System Upgrade $42,800 $42,600 $42,600 $42,100 $41,800 $41,800 $41,300 $0
Debt Service - 2009 Public Safety Communications Center $32,700 $32,800 $32,500 $32,500 $32,500 $32,400 $32,400 $32,300
Debt Service -I-Bank Loan for Tank Farm Lift Station $561,900 $561,100 $560,300 $559,400 $558,500 $557,500 $556,600 $555,60 0
Debt Service -Private Placement for Tank Farm Lift Station $187,900 $188,100 $188,000 $187,800 $187,300 $186,700 $185,800 $184,70 0
Debt Service - Water Reclamation Facility Upgrade $0 $0 $0 $0 $0 $4,122,100 $4,122,100 $4,122,10 0
Debt Service -WRF Energy Efficiency Project $0 $480,700 $480,700 $480,700 $480,700 $480,700 $480,700 $480,700
Development Impact Fee Growth Rate 0 .00%0,25%0 .50%0 .50%0 .50%0.50%0.50%0,75%
Attachment 2 (Proforma )
Exhibit A.3
CAPITAL I .MPROVEMENT PLAN - SEWER FUND PROFORM A
KO1EC i 171_l 111 .AAI)I'IL\til\c .I 1 IC I ; I If 1L'i,
21112-1 3
WASTEWATER SERVICES (~ '.UI '~i~I L)I-.~1i'1 BSI I)I'I,ul'~ ~ I I)4,t 1 'C1 3 I I'1'2'1J`.1
Wastewater Collection
Collection System Improvements 500,000 1,575,000
Collection System Infrastructure Replacement Strategy 100,000
0001,590800,000 1,470,000 1,500,000 600,0001,575,000
Laguna Lift Station
Design
Construction
Construction Managemen t
Calle Joaquin Lift Station
Design
Construction
Construction Management
Madonna Lift Statio n
Design
Construction
Margarita Lift Station
Design
Construction
Foothill Lift Station
Design
Construction
Buckley Lift Statio n
Design
Construction
Construction Managemen t
Fleet Particulate Matter Trap Retrofit
3,800,000
300000
100,000
500,00 0
100,000
500,000
100,000
500,000
500,000
2,000,000
500,000
Fleet Replacement :1/2 Ton Pickup 20,00 0
Fleet Replacement:Hydro-Cleaner 255,000 270,000
Equipment Replacement: Generator (50%share)55,000
Fleet Replacement : CCTV Van 120,000
Fleet Replacement 1 1/2 Ton Service Trucks 180,000
Water Reclamation Facility
Major Maintenance 370,000 575,000 320,000 505,000 400,000 425,000 450,000 640,000
WRF Energy Efficiency Project 6,000,000
WRF Upgrade
Design 1,500,000 2,000,000
Construction
Infrastructure 15,340,000
Nutrient Removal 39,460,00 0
Construction Management 4,500,000
Fleet Replacement : Mid-Size Pickup 15,00 0
Fleet Replacement: 3/4 Ton Service Bed Truck 25,00 0
Total Wastewater Services CIP Requests 6,970,000 6,625,000 3,275,000 4,695,000 61,920, 000 2,500,000 3,550, 000 2,500, 000
Shared Information Technology
Office Application Software Replacement (4%share)
City Website Upgrade (4% share )
Network Firewalls 8,500
Virtual Private Network (VPN) Appliances 6,500
Web Filter, Security Upgrades, Network Security 5,500
Network Equipment Replacement 33,500
Radio Handhelds and Mobile Replacements 43,000
Total Share of Information Technology CIP 0 20,500 33,500 0 43,000 0 0 0
TOTAL SEWER FUND CAPITAL PLAN 6,970,000 6, 645,500 3,308, 500 4,695,000 61,963, 000 2,500,000 3,550,000 2,500,000