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HomeMy WebLinkAbout9/21/2016 - STAFF REPORTS - 1.K. ;OF Q P LM Sp9 iy c+ V N *` C`Oer°ern° 'OP 4I/PORN` City Council Staff Report Date: September 21, 2016 CONSENT CALENDAR Subject: ADOPTION OF A WASTEWATER FUND PLEDGED REVENUE RESOLUTION FOR A CLEAN WATER STATE REVOLVING FUND LOAN ASSOCIATED WITH THE CITY OF PALM SPRINGS WASTEWATER TREATMENT PLANT UPGRADE, CITY PROJECT NO. 15-14 From: David H. Ready, City Manager Initiated by: Engineering Services Department SUMMARY This action will adopt a Resolution pledging the City's Wastewater Enterprise Funds as payment to the State Water Resources Control Board for a Clean Water State Revolving Fund Loan required as a precursor to receiving the State's final approval of a financial loan agreement for the Wastewater Treatment Plant Upgrade, City Project No. 15-14, (the "Project"). RECOMMENDATION: Adopt Resolution No. , "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, PLEDGING ITS WASTEWATER ENTERPRISE FUNDS AS PAYMENT TO THE STATE WATER RESOURCES CONTROL BOARD UNDER THE CLEAN WATER STATE REVOLVING FUND FOR THE CITY OF PALM SPRINGS WASTEWATER TREATMENT PLANT UPGRADE, CITY PROJECT NO. 15- 14." STAFF ANALYSIS: On April 1 , 2015, the City Council approved various actions related to the Wastewater Treatment Plant Upgrade, City Project No. 15-14, (the "Project"). On May 4, 2016, the City Council approved additional actions related to the Project, including: 1) Approval of Amendment No. 1 to Agreement No. 6691 with Veolia Water West Operating Services, Inc., ("Veolia"), in the amount of $213,531 for a revised total ITEM NO. C\ City Council Staff Report September 21, 2016 - Page 2 Wastewater Treatment Plant Upgrade, CP15-14 contract amount of $2,919,027 for professional engineering and construction management services associated with the construction phase of the Project; 2) Approval of a list of 11 pre-qualified general contractors for the Project, which included: a) Cushman Contracting — Goleta, CA b) C.W. Roen Construction — Danville, CA c) GSE Construction — Livermore, CA d) J.F. Shea Construction — Walnut, CA e) J.R. Filanc Construction — Escondido, CA f) Pascal & Ludwig Constructors — Ontario, CA g) PCL Construction — Corona, CA h) Shimmick Construction — Irvine, CA i) SSC Construction — Corona, CA j) Stanek Constructors — Escondido, CA k) W.M. Lyles Co. — Temecula, CA 3) Reconfirmed approval of the plans, specifications, and working details for the Project, inclusive of the design-build of new potable water and fire line system improvements, and authorized staff to advertise for bids with the pre-qualified contractors. Pursuant to the City Council's actions on May 4, 2016, staff initiated the formal bidding process on May 5, 2016, with the 11 pre-qualified contractors. On August 11, 2016, at 3:00 p.m., the Procurement and Contracting Division received six construction bids from the pre-qualified contractors listed in Table 1: Company Location Bid Amount W.M. Lyles Co. Temecula, CA $20,522,737 C.W. Roen Construction Co. Danville, CA $21,093,889 J.R. Filanc Construction Co. Inc. Escondido, CA $21,193,788 GSE Construction Company, Inc. Livermore, CA $22,117,899 J.F. Shea Construction, Inc. Walnut, CA $22,540,888 PCL Construction, Inc. Corona, CA $23,610,121 Table 1 Through the City's prior agreement with Veolia, Carollo Engineers prepared the plans and specifications for the Project. In March 2016, Carollo Engineers provided a final engineer's estimate of $23,274,980 for the Project (inclusive of contingency but excluding escalation to mid-point and sales tax factors); a copy of Carollo Engineers estimate is included as Attachment 1. The City's formal bidding process established very competitive bids from 6 of the 11 pre-qualified contractors, with the lowest responsive bid from W.M. Lyles Co. submitted at $20,522,737 is 12% below the engineer's estimate. In accordance with the City's bid 02 City Council Staff Report September 21, 2016 - Page 3 Wastewater Treatment Plant Upgrade, CP15-14 documents, the contractor is obligated to guarantee their bid price for a period of 120 calendar days from submittal of bids —which guarantees the bid price until December 9, 2016. A full bid summary is included as Attachment 2. As reported to the City Council in May 2016, over the last year, staff has coordinated with the California State Water Resources Control Board, (the "Board"), to apply for and secure a low interest (less than 2%) loan through the Clean Water State Revolving Fund ("SRF") Program for the Project. Final legal approvals from the Board on the financial agreement have been obtained, contingent upon the City Council's adoption of a Resolution pledging its Wastewater Enterprise Funds as payment to the Board for the loan. Staff is recommending the City Council adopt the required Resolution pledging its Wastewater Enterprise Funds required to repay the state for the loan agreement to be entered into with the state. Following adoption of this required Resolution, staff will finalize the loan agreement with the state, and schedule subsequent approval of the loan agreement and award of a construction contract with W.M. Lyles Co. at that time. ENVIRONMENTAL IMPACT: On June 18, 2014, the City Council, acting as the lead agency in accordance with the California Environmental Quality Act ("CEQA"), and pursuant to Section 15074 of the CEQA Guidelines, reviewed, approved, and ordered the filing of a Mitigated Negative Declaration ("MND") for the construction of several new replacement facilities at the City's Wastewater Treatment Plant facility, including: influent sewer, headworks, septage receiving station, influent pump station, primary clarifiers, scum pump station, primary sludge pump station, primary sludge de-gritting, gravity thickener cover, Digester No. 2 cover, foul air treatment facility, new electrical building, and lighting system. These projects, bundled together, have been identified as the City of Palm Springs Wastewater Treatment Plant Upgrade, City Project No. 15-14. A Notice of Determination ("NOD") for the Project was subsequently filed with the Riverside County Clerk on June 25, 2014. FISCAL IMPACT: The estimated total Project costs have been updated in the followin Table: Project Element Amount Design Phase Costs Incurred $3,312,305 Additional Professional Services $1,817,802 Pre-Purchased Equipment $3,341 ,769 Construction Estimate $20,522,737 Construction Contingency (5%) $1,026,137 Construction Management Services $1,101,226 Owner's Rep Services $298,524 Total Project Cost $31,420,500 03 City Council Staff Report September 21, 2016- Page 4 Wastewater Treatment Plant Upgrade, CP15-14 The Design Phase costs of $3,312,305 have been expended and Pre-Purchased Equipment costs of $3,341,769 have been encumbered, leaving an estimated cost of $24,766,426 to complete the Project. Currently, the Wastewater Fund Enterprise (Fund 420) has a Fund Balance of approximately $11.5 Million. Although the Fund Balance may be used towards the Project costs, staff recommended and the City Council directed that the City reserve its Wastewater Enterprise Fund Balance for working capital, unexpected costs and emergencies, and utilize low interest financing for the remaining cost. The final loan agreement being negotiated with the state will provide financing of up to $29,927,196 (the prior estimated cost to be financed) at 1.7% interest, for a 30-year term. Based on the low bid received, the final cost to be financed is estimated at $24,766,426, resulting in a new annual debt service of approximately $1 ,063,000 to be paid by the Wastewater Enterprise Fund. The City's Wastewater Enterprise Fund currently has no debt. The City's Financial Advisor, Suzanne Harrell, previously reviewed the financial status of the City's Wastewater Enterprise, and has determined that with the currently adopted sewer rates, the City might comfortably assume a maximum net bonding capacity of $29 Million with an annual debt service payment of $1.8 Million. A copy of Ms. Harrell's memorandum is included as Attachment 3. Based on the final total project cost estimate, the annual debt service will be significantly lower than $1.8 Million, and pledging the City's Wastewater Enterprise Funds will not compromise the financial integrity of the Wastewater Enterprise Fund. All costs associated with the Project, both prior and future costs, are entirely funded by the Wastewater Enterprise Fund (Fund 420). No General Fund or Measure J Capital Fund budget will be required in the delivery of the Project. The requested action at this time is to adopt the Resolution pledging its Wastewater Enterprise Funds required to repay the state for the loan agreement to be entered into with the state. There is no financial commitment being taken at this time by the City Council. 04 City Council Staff Report September 21, 2016 - Page 5 Wastewater Treatment Plant Upgrade, CP15-14 SUBMITTED: Marcus L. Fuller, MPA, P.E., P.L.S. David H. Ready, Ea ` D Assistant City Manager/City Engineer City Manager Attachments: 1 . Engineer's Estimate 2. Bid Summary 3. Financial Advisor Analysis 4. Resolution 05 ATTACHMENT 1 06 C CaP.---10.% rn,.. w " ' "'.1 W" '. PROJECT SUMMARY Estimate Class: 2 Project: Palm Springs Headworks&Primary Clarifier Upgra< PIC: JPH Client: City of Palm Springs and Veolia Water PM: DJL Location: Palm Springs,California Date: Mar-16 Zip Code: 92262 By: HT1TL Carollo Job# 09328A10 Reviewed: DJL NO. - - DESCRIPTION - TOTAL 01 Influent Sewer $223,464 09 Influent Metering $60,769 12 Headworks $1,984,429 15 Influent Pump Station $1,897,174 20 Primary Clarifiers $2,814,139 21 Primary Scum Pump Station $423,339 25 Primary Sludge Pump Station $957,083 27 D ritting $742,613 30 Odor Control _ $1.238.256 55 Gravity Thickeners $79,474 90 EI&C $2,079,463 91 Excavation&Backfill $1,904,818 92 Paving $557,780 99 Yard Piping $2,636,428 TOTAL DIRECT COST $17,599,228 General Conditions 10.0% $1,759,923 Subtotal _ _ $19,359,151 Estimating_Unknowns 5.0% $879,961 Subtotal $20,239,113 General Contractor Overhead and Profit 15.0% $3,035,867 Subtotal $23,274,980 4*W_! Escalation to Mid-Point 7.1% $1,656,557 Subtotal $24,931,537 Sales Tax 9.0% $1,121,919 Subtotal $26,053,456 Programming $0 _ Subtotal $26,053,456 Allowances TOTAL ESTIMATED CONSTRUCTION COST The cost estimate herein is based on our perception of current conditions at the project location. This estimate reflects our professional opinion of accurate costs at this time and is subject to change as the project design matures. Carollo Engineers have no control over variances in the cost of labor,materials,equipment,nor saWicesprovided by others,contractor's means and methods of executing the work or of determiningprices,competitive bidding or market conditions,practices or bidding strategies. Carollo Engineers cannot and does not wament or guarantee that proposals,bids or actual construction costs wolf not vary from the costs presented as shown. 07 f/n:2016 Rebid.xlsb-PROJECT SUMMARY Page 1 of 1 Printed: 10/28/2010 ATTACHMENT 2 08 WASTEWATER TREATMENT PLANT UPGRADE CITY PROJECT NO 15-14 BID SUMMARY Biol Opening:August 11,2016 LUMPSUM BID SCHEDULE A-REVISED(ADDENDUM NO.4) DUANT. UNIT W.M.LYLES CO. C.W.ROEN J.R.FILANC GEE J.F.SHEA PCL DESCRIPTION CONSTRUCTION CO, CONSTRUCTION CO,INC. CONSTRUCTION CO,INC CONSTRUCTION,INC. CONSTRUCTION,INC. The scope of Burk of this Lump Sum Bid Schedule Includes al met.excluding certain bid arms separately pool for an a unit pwe basis as identified on BM Schedule B.alas dentdMd in the Consbuctipn Or.W 0e and Typkal Details Had CITY OF PALM SPRINGS VEOLIA WATER WEST OPERATING SERVICES.INC. HEADWORKS AND PRIMARY CLARIFIER UPGRADE APRIL 2016 VOLUMES THROUGH 5 The scope of toile of this Lump Sum BN schedule also ncludes alvmrk required Ism. Camra.t Technical Spech.tbns.111cable to flatW.M.Aster Treatment Plant Upgrade(the 1 LS $19726412 $19721000 $20.173351 $20,6D4600 $21.015.200 $22,096,500 idtnli6ed as the Headvurks and Primary Clarifier Upgrade).CM Project No,15-14 Specul Not..Al-,k idar4Aed an the Cemuugian Dmry,.list robbed by the CbMnacVTechmcai Speoifka io,(Volume,1 though 5),shelf be furnished.complete an piece including al ao,cutelea trades c nsbuchon of all see anorovm ante,and completing all associated nark neceasarytc police, In.improvements n complete vn,king order. In sabmi¢ng this lump Sum Bid.the Rock r aeknovfidges that,yam In.ictco,tra,of Mo.. pa If bid earns apa,aleh Pool far on a unk arke basis as drafted on Bd ScheduScheduleB,there vA be no separate or additional payment made for comgetng the.1k "Lead re rune,Or.Lump BM Schedule 0. LUMP SUM RIO-REVISED(ADDENDUM NO.41 SOHE01)LE OF VALUES: DESCRIPTION OF WORK I SCH EDU LE OF VALU ES SCHEDULE OF VALU ES SCHEDULE OF VALUES SCHEDULE OF VALUES SCHEDULEOFVALUES SCHEDULE OF VALUES Dvivon Ot-Genoral R.,musenls I LS $2.300.000 f95DOW S27"01 $2.914,600 31,986,500 51.300.000 Dvina.02-St.Work 1 LS $3800.000 $4,100.WO $2071,137 $6.2W.000 $3,514,000 $7.400.000 Drviaon 03-Connele 1 L6 33,6NON $4WO,ON 53,366350 33,500.000 $5,Goo NO 34900.000 Dvision 05-Valli 1 LS $800000 $1,200000 3825814 3950.WO 31.173,01 S1,000.000 Divoom 06-Wood and Plastics 1 LS $250.000 33N6W $285.363 33006N 3400.000 150000 Darman 07-7he,nal and M.isu-Protection 1 LS $50ON 540.W0 $22633 4200W $44.ON 3100.000 DMafon 09-Finish- I LS S1000.003 $1 IN= 5435.075 55506W $NS,OW 3600.0013 a.:zion 10-5petlaNes 1 LS $10000 S6.000 fo $10'000 $40 DOD 56550 D'ribi0n 11-Equipmem 1 LS $900000 $1.IwNe 5433,047 $950 W0 $1 540.3001 594000 Dam-l3-Special C...tmclione 1 LS S700.000 5650000 S1.754.500 $1.150,600 sisa3.5DO1 $2,170 NO Dve:an 14-Conveying Systems 1 L6 $1500W $145.WI) $326596 $150000 f192.000 S30.000 Diri 15-Mechanical 1 LS 33,816,41E !2 C00 $5697,646 $1600 No 54.06],900 $15Wp00 Division l6-Ekcrritd 1 LS fL200.00a 31,603.ON $2.140,096 $2.000,000 at S70'aw $1500.NO Division 17-InstrumentaWn aM Control System 1 LS 53500N $500.W0 S20,000 $310.000 S429.000 SSW.WO TOWI LUMP Sum Bid: 519,726,11E S19,721,000 $20,173.361 $20.504,600 $21.015.2001 $22,011 UNIT UNIT UNR UNIT UNIT UNIT BID SCHEDULER pUgNT. UNIT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT PRICE PRICE PRICE PRICE PRICE PRICE 1. V ACP Pipe renaval'drsrobal 46 LF $ 50 $ 2.300 f 85 $ 3910 f 215 3 2,890 f 159 S 7.314 S 123 $ $658 $ 71 $ 3266 2. V ACP PipemrosidWispesal 391 LF 3 55 3 21.505 5 50 5 19550 $ 3l S 12,903 3 91 $ 35,581 $ 95 $ 37.145 $ 70 S 27.370 3. 1V ACP Pip.nmova0dR....I in LF S 65 $ 11,245 $ 70 f 12.110 S W 1 10,380 $ 117 $ 20.241 f 141 3 24393 f 1N $ 17.30D 4. 12-ACP Piper polidzposai 164 LF 3 70 $ 12.660 $ 73 $ 1343E $ 57 $ 10.439 5 129 1 231M $ 1RE $ 35880 $ 1W $ 16.400 S. Ir AGE Pipe nmomidsposal 1W LF 3 90 $ 13.500 3 1N $ Ism $ T, $ H,550 $ 140 S 210N S 167 $ 25050 S 1N 5 15,ON 6. 2T ACP Pp.removaPo'epasal 265 LF $ 110 5 29.150 $ 141 $ 37,365 3 54 S 14,310 3 14C S 371N $ 161 5 42665 $ 105 S 27625 7. W ACP Poe rtmova0dlsposal 506 LF $ 125 $ 0250 S 102 $ 51612 S W 5 "ASO S 142 S 71852 $ 1W S 60.960 S 126 S 64.7" R. Digealer No.2 Svfam Repair 3071 SF 3 13 $ 39,923 1 72 3 221.112 3 28 $ 6SRSO S 27 $ 82,917 S 32 $ 98,272 S 27 S 02,917 9. Digester No.2 Concrete Coating 4,673 SF S 14 f 65.422 S 16 f 74758 S 14 $ 65,422 S 13 S 60,749 $ 15 $ 70,095 f 16 $ 70,095 10, Dqi No.2 Bob,lnjetlon far Eaolim,Concrete 5W LF $ 40 S 20 GOO $ ISO $ 9C,000 $ 35 $ 17,500 S 76 $ 39 W0 $ 75 $ 375W 3 17 3 63.SW 11. 2'POUble Water Late 1.220 LF S 40 f 48NO $ 24 3 29280 $ 51 S 92220 $ 146 $ 178.120 $ 102 $ 124,440 3 65 $ T9.3W 12. Bui 2'REV in Valve Boa 5 EA $ 11W 1 5NO $ 1400 $ 7NO 1 374 S 1.870 $ 1.187 f 5935 $ 3,IN $ 15.500 f 6,900 S 345W 13. O"Fire Line b!Depth) 2.700 IF f 75 $ 202.500 $ 175 f 472,599 f 129 3 US 300 $ 217 S 585,900 f 1" $ 442,600 $ 146 $ 399.600 14. 8'Fire Line El Depth) 1.290 LF $ 55 S 70,950 f 95 S 1221550 $ 113 S 145.770 S 96 3 123.840 $ 157 $ 202.530 $ 162 $ 2081960 15. Super!8"BFVm Y.N.Boa 14 EA S 3,800 f 53.200 5 3]00 1 S SION $ GORE S 42.N0 5 4.505 $ 63070 f 14W $ 47,600 $ 92W $ 128,800 18. OF Commercial Fie Hydrant AssemLly including isolation valves) 6 EA $ 74N 1 592N S t00W f W.OW 3 937 3 75,066 3 9.62E 5 76.976 $ 14 NO 5 119200 $ 11.5W 3 92.0N 1T. Nr Raker Verve A...m 7 10 EA $ 7,0N S 70.0W 5 6ON S W.NO 5 6,W4 S SO 5 6,491 5 64,910 1 $ 105W 5 105,00D $ 1300 $ 130,OW 18. Unity Pathole and Coordmotim for Water Line lnstbtKn 10 EA $ TOO $ 7.OW $ tOW f 10 NO $ Set, S SdN S 1661 S 16.610 S 1.100 5 11.NO 3 25N S 25.ON TOTAL OF ALL ITEMS OF BID SCHEDULE B: $ 796,325 S 1172861 i 1,020,437 $ 1,613,299 f 1,525,686 S 1.513.621 TOTAL OF BID SCHEDULES AaB: S 20.522.737 6 21.093,389 $ 21,193.788 $ 22,117,899 f 22,540,989 $ 21,610,121 1 2 3 4 5 6 NOTE:THE CORRECTED AMOUNTS ARE UNDERLINED O'el ATTACHMENT 3 10 February 26, 2015 Assumptions for WWTP Projections • Rates continue to increase by $1 per year until $35 reached — assumes successful Prop 218 hearing every five years • Interest rates for debt based on AA rating, rates as of February 26, 2015 and 20 by contingency • No cash funded reserve fund for bonds • Working capital reserve 7 months because of tax roll billing cycle • Depreciation/Emergency Repair Reserve starts at $3,000,000, increases $500,000 each year. Lower than existing because assets will be new. • Additional $2M capital costs each year • $750,000 design costs remaining as of July 1, 2014 • Project costs of $32M including prepurchase equipment and installation but excluding design costs already paid ($2.55M) • Operating Costs based on Rate Study Option 1 Funding: Project Costs Remaining Design Total Bond Proceeds $25,000,000 $25,000,000 Fund Balance 7,000,000 $750,000 $7,750,000 Total $32,000,000 $750,000 $32,750,000 Minimum Coverage 1.47x taking into account $20 monthly fee Option 2 Funding (Maximize Bond Proceeds): Project Costs Remaining Design Total Bond Proceeds $29,000,000 $29,000,000 Fund Balance 3,000,000 $750,000 $3,750,000 Total $32,000,000 $750,000 $32,750,000 Minimum Coverage 1.25x taking into account $20 monthly fee The City Tower,333 City Boulevard West,Suite 1430,Orange,California 92868 Tel:714.939.1464 Fax: 714.939.1462 � 1 OPTION 1-CITY OF PALM SPRINGS WASTEWATER TREATMENT PLANT CASHFLOW-RAISE$25M FOR PROJECT/FUND$7,750,000 FROM FUND BALANCE(TOTAL PROJECT$32M PLUS$750,000 REMAINING DESIGN) Beginning Ending 7 Month Unreserved FVE Monthly Service Operating Net Debt Coverage Remaining Connection Interest Other Available Fund Available Bond Fund Operating Depreciation Fund )u ne 30 EDU Rate Charge Expense Income Service Ratio Balance Fees Income Income Cashflaw Balance Cashflow Proceeds CIP Balance Reserve Reserve Balance 2013 44,200 12 6,364,800 2014 44,775 14 7,522,200 (5,544,968) 1,977,232 - 1,977,232 673,754 184,273 24,859 2,860,118 12,764,948 2,960,118 (2,324,022) 13,301,044 (3,234,565) (3,000,000) 7,066,479 2015 44,775 16 8,596,800 (6,345,000) 2,251,800 - 147% 2,251,800 300,000 80,000 15,000 2,646,800 13,301,044 2,646,800 25,000,000 (32,750,000) 8,197,844 (3,701,250) (3,500,000) 996,594 2016 44,775 18 9,671,400 (6,709,000) 2,962,4DO (1,535,000) 193% 1,427,400 300,000 80,000 15,000 1,822,400 8,197,844 1,822,400 (2,000,000) 9,020,244 (3,913,583) (4,000,000) 106,661 2017 44,775 20 10,746,000 (7,095,000) 3,651,000 (1,S3S,000) 238-A 2,116,000 300,000 90,000 15,000 2,511,000 8,020,244 2,511,000 (2,000,000) 8,531,244 (4,138,750) (4,500,000) (107,506) 2018 44,775 21 11,283,300 (7,308,000) 3,975,300 (1,535,000) 259% 2,440,300 - 80,000 15,000 2,535,300 8,531,244 2,535,300 (2,000,000) 9,066,544 (4,263,000) (5,000,000) (196,456) 2019 44,775 22 11,820,600 (7,527,000) 4,293,600 (1,535,000) 280% 2,758,600 - 80,000 15,000 2,853,600 9,066,544 2,853,600 (2,000,000) 9,920,144 (4,390,750) (5,SOO,000) 29,394 2020 44,775 23 12,357,900 (7,753,000) 4,604,900 (1,535,000) 300% 3,069,900 - 80,000 15,000 3,164,900 9,920,144 3,164,900 (2,000,000) 11,085,044 (4,522,593) (6,000,000) 562,461 2021 44,775 24 12,995,200. (7,986,000) 4,909,200 (1,535,0001 320% 3,374,200 - 80,000 15,000 3,469,200 11,085,044 3,469,200 (2,000,000) 12,554,244 (4,658,500) (6,500,000) 1,395,744 2022 44,775 25 13,432,500 (8,226,000) 5,206,500 (1;535,000) 339% 3,671,500 - 80,000 15,000 3,766,500 12,554,244 3,766,500 (2,000,000) 14,320,744 (4,798,500) (7,000,000) 2,522,244 2023 44,775 26 13,969,800 (8,473,000) 5,496,800 (1,535,000) 358% 3,961,800 - 80,000 iS,000 4,OS6,800 14,320,744 4,056,800 (2,000,000) 16,377,544 (4,942,583) (7,500,000) 3,934,961 2024 44,775 V 14,507,100 (9,727,000) 5,780,100 (1,535,DO0) 377% 4,245,100 - 80,000 15,000 4,340,100 16,377,544 4,340,100 (2,000,000) 18,717,644 (5,090,750) (8,000,000) 5,626,894 2025 44,775 28 15,044,400 (8,989,000) 6,055,400 (1,535,000) 394% 4,520,400 - 80,000 15,000 4,615,400 18,717,644 4,615,400 (2,000,000) 21,333,1544 (5,243,583) (8o500,000) 7,589,461 2026 44,775 29 15,581,700 (9,259,000) 6,322,700 (1,535,000) 412% 4,787,700 - 80,000 15,000 4,882,700 21,333,044 4,882,700 (2,000,000) 24,215,744 (5,401,083) (9,000,000) 9,814,661 2027 44,775 30 16,119,000 (9,537,000) 6,582,000 (1,535,000) 429% 5,047,000 - 80,000 15,000 5,142,000 24,215,744 5,142,000 (2,000,000) 27,357,744 (5,563,250) (9,500,000) 12,294,494 2028 44,775 31 16,656,300 (9,823,000) 6,833,300 (1,535,000) 445% 5,298,300 - 80,000 15,000 5,393,300 27,357,744 5,393,300 (2,000,000) 30,751,044 (5,730,083) (10,000,000) 15,020,961 2029 44,775 32 17,193,600 (10,118,000) 7,075,600 (1,535,000) 461% 5,540,600 - 80,000 15,000 5,635,600 30,751,044 5,635,600 (2,000,000) 34,386,644 (5,902,167) (10,500,000) 17,984,477 2030 44,775 33 17,730,900 (10,422,000) 7,398,900 (1,535,000) 476% 5,773,900 - 80,000 15,000 5,868,900 34,386,644 5,868,900 (2,000,000) 38,255,544 (6,079,500) (21,000,000) 21,176,044 2031 44,775 34 18,268,200 (10,735,000) 7,533,200 (1,535,000) 491% 5,998,200 - 80,000 15,000 6,093,200 38,255,544 6,093,200 (2,000,000) 42,348,744 (6,262,083) (11,500,000) 24,586,661 2032 44,775 35 18,805,500 (11,057,000) 7,748,500 11,535,000) 505% 6,213,500 - 80,000 15,000 6,308,500 42,348,744 6,308,500 (2,000,000) 46,657,244 (6,449,917) (12,000,000) 28,207,327 2033 44,775 35 18,805,500 (11,389,000) 7,416,500 (1,535,000) 483% 5,881,500 - 80,000 15,000 5,976,500 - 46,657,244 5,976,500 (2,000,000) 50,633,744 (6,643,583) (12,500,000) 31,490,161 2034 44,775 35 18,805,500 (11,731,000) 7,074,500 (1,535,000) 461% 5,539,500 - 80,000 15,000 5,634,500 50,633,744 5,634,500 (2,000,000) 54,268,244 (6,843,083) (13,000,000) 34,425,161 2035 44,775 35 18,805,500 (12,083,000) 6,722,500 (1,535,000) 438% 5,187,500 - 80,000 15,000 5,282,500 54,268,244 5,292,500 (2,000,000) 57,550,744 (7,048,417) (13,500,000) 37,002,327 2036 44,775 35 18,805,500 (12,445,000) 6,360,500 (1,535,1300) 414% 4,825,5130 - 80,000 15,OD0 4,920,500 57,550,744 4,920,500 (2,000,000) 60,471,244 (7,259,583) (14,000,000) 39,211,661 2037 44,775 35 18,805,500 (12,818,000) 5,987,500 (1,535,D00) 390% 4,452,500 - 80,000 15,000 4,547,500 60,471,244 4,547,500 (2,000,000) 63,018,744 (7,477,167) (14,500,000) 41,041,577 2038 44,775 35 18,805,500 (13,203,ODO) 5,602,500 (1,535,000) 365% 4,067,500 - 80,000 15,000 4,162,500 63,018,744 4,162,500 (2,000,000) 65,181,244 (7,701,750) (15,000,000) 42,479,494 2039 44,775 35 18,805,500 (13,599,000) 5,206,SDO (1,535,0001 339% 3,671,500 - 80,000 15,000 3,766,500 65,181,244 3,766,500 (2,000,000) 66,947,744 (7,932,750) (15,500,000) 43,514,994 2040 44,775 35 18,805,500 (14,007,000) 4,798,500 (1,535,000) 313% 3,263,500 - 80,000 15,OOO 3,358,500 66,947,744 3,358,500 (2,000,000) 68,306,244 (8,170,750) (16,000,000) 44,135,494 2041 44,775 35 18,805,500 (14,427,0001 4,378,5DO - 4,378,50D - 80,000 15,000 4,473,500 69,306,244 4,473,500 (2,OOD,000) 70,779,744 (8,415,750) (16,500,000) 45,863,994 2042 44,775 35 18,805,500 (14,860,0001 3,945,500 - 3,945,500 - 80,000 15,000 4,040,500 70,779,744 4,040,500 (2,000,000) 72,820,244 (8,668,333) 117,000,000) 47,151,911 2043 44,775 35 13,805,500 (15,306,000) 3,499,500 - 3,499,500 - 80,000 15,000 3,594,500 72,820,244 3,594,500 (2,000,000) 74,414,744 (8,928,500) (17,500,000) 47,986,244 2044 44,775 35 18,805,500 (15,765,000) 3,040,500 - 3,040,500 - 80,000 15,000 3,135,500 74,414,744 3,135,SOO (2,000,000) 75,550,244 (9,196,250) (18,000,000) 48,353,994 iz OPTION 2-CITY OF PALM SPRINGS WASTEWATER TREATMENT PLANT CASHFLOW-RAISE$29M FOR PROJECT/FUND$3,750,000 FROM FUND BALANCE(TOTAL PROJECT$32M PLUS$750,000 REMAINING DESIGN) Beginning Ending 7 Month Unreserved FYE Monthly Service Operating Net Debt Coverage Remaining Connection Interest Other Available Fund Available Bond Fund Operating Depreciation Fund June 30 EDU Rate Charge Expense Income Service Ratio Balance Fees Income Income CashBow Balance Cashflow Proceeds CIP Balance Reserve Reserve Balance 2013 44,Z00 12 6,364,800 2014 44,775 14 7,522,200 (5,544,9681 1,977,232 - 1,977,232 673,754 184,273 24,859 2,960,118 12,764,948 2,860,118 (2,324,022) 13,301,044 (3,234,565) (3,000,000) 7,065,479 2015 44,775 16 8,596,800 (6,345,000) 2,251,800 - 125% 2,251,800 300,000 80,000 15,000 2,646,800 13,301,044 2,646,800 29,000,000 (32,750,000) 12,197,944 (3,701,250) (3,500,000) 4,996,594 2016 44,775 18 9,671,400 (6,709,000) 2,962,400 (1,800,000) 165% 1,162,400 300,000 80,000 15,000 1,557,400 12,197,844 1,557,400 (2,000,000) 11,755,244 (3,913,583) (4,000,000) 3,941,661 2017 44,775 20 10,746,000 (7,095,000) 3,651,000 (1,800,000) 203% 1,851,000 300,000 80,000 15,000 2,246,000 11,755,244 2,246,000 (2,000,000) 12,001,244 (4,138,750) (4,500,000) 3,362,494 2018 44,775 21 11,283,300 (7,308,000) 3,975,300 (1,800,000) 221% 2,175,300 - 80,000 15,000 2,270,300 12,001,244 2,270,300 (2,000,000) 12,271,544 (4,263,000) (5,000,000) 3,008,544 2019 44,775 22 11,82D,600 (7,527,000) 4,293,600 (1,800,000) 239% 2,493,600 - 80,000 15,000 2,588,600 12,271,544 2,588,600 (2,000,000) 12,860,144 (4,390,750) (5,500,000) 2,969,394 202D 44,775 23 12,357,900 (7,753,000) 4,604,900 (1,900,000) 256% 2,804,900 - 80,000 15,000 2,899,900 12,860,144 2,899,900 12,000,0001 13,760,044 (4,522,583) (6,000,D00) 3,237,461 2021 44,775 24 12,895,200 (7,986,000) 4,909,200 (1,800,000) 273% 3,109,200 - 80,000 25,000 3,204,200 13,760,044 3,204,200 (2,000,000) 14,964,244 (4,658,500) (6,500,000) 3,805,744 2022 44,775 25 13,432,500 (8,226,000) 5,206,500 (1,800,000) 289% 3,406,500 - 80,000 15,000 3,501,500 14,964,244 3,501,500 (2,000,000) 16,465,744 (4,798,500) (7,000,000) 4,667,244 2023 44,775 26 13,969,800 (8,473,000) 5,496,800 11,800,000) 305% 3,696,800 - 80,000 15,000 3,791,900 16,465,744 3,791,800 (2,DOO,000) 18,257,544 (4,942,593) (7,500,000) 5,814,961 2024 44,775 27 14,507,100 (8,727,000) 5,780,100 (1,800,000) 321% 3,980,100 - 80,000 15,000 4,075,100 18,257,544 4,075,100 (2,000,000) 20,332,644 (5,090,750) (8,000,000) 7,241,894 2625 44,775 28 15,044,400 (8,989,000) 6,055,400 (1,800,000) 336% 4,255,400 - 80,000 15,000 4,350,400 20,332,644 4,350,400 (2,000,000) 22,683,044 (5,243,583) (8,500,ODO) 8,939,461 2026 44,775 29 15,581,700 (9,259,DOD) 6,322,700 (1,800,000) 351% 4,522,700 - 80,000 15,000 4,617,700 22,683,044 4,617,700 (2,000,000) 25,30D,744 (5,401,083) (9,000,000) 10,899,661 2027 44,775 30 16,119,000 (9,537,000) 6,582,000 (1,800,000) 366% 4,782,000 - 80,000 15,000 4,877,ODO 25,300,744 4,877,000 (2,000,000) 28,177,744 (5,563,250) (9,500,000) 13,114,494 2028 44,775 31 16,656,300 (9,823,000) 6,833,300 (1,800,000) 380% 5,033,30D - 80,000 15,000 5,128,300 28,177,744 5,128,300 (2,000,000) 31,306,044 (5,730,083) (10,000,000) 15,575,961 2029 44,775 32 17,293,600 (10,118,000) 7,075,600 (1,800,DDD) 393% 5,275,500 - 80,000 15,000 5,370,600 31,306,044 5,370,600 (2,000,0D0) 34,676,644 (5,902,167) (10,500,000) 18,274,477 2030 44,775 33 17,730,900 (10,422,000) 7,308,900 (1,800,000) 406% 5,508,900 - 80,000 15,000 5,603,900 34,676,644 5,603,900 (2,000,000) 38,280,544 (6,079,500) (11,000,000) 21,201,044 2031 44,775 34 18,268,200 (10,735,000) 7,533,200 (1,800,000) 419% 5,733,200 - 80,000 15,000 5,828,200 38,230,544 5,828,200 (2,000,000) 42,108,744 (6,262,083) (11,SOO,D00) 24,346,661 2032 44,775 35 18,805,500 (11,057,000) 7,748,500 (1,800,000) 430% 5,948,500 - 80,000 15,000 6,043,500 42,108,744 6,043,500 (2,000,0001 46,152,244 (6,449,917) (12,000,000) 27,702,327 2033 44,775 35 18,805,500 (11,389,000) 7,416,500 (1,800,000) 412% 5,616,500 - 80,000 15,000 5,711,500 46,152,244 5,711,500 (2,000,000) 49,863,744 (6,643,583) (12,500,D00) 30,720,161 2034 44,775 35 18,805,500 (11,731,000) 7,074,500 (1,800,000) 393% 5,274,500 - 80,000 15,000 5,369,500 49,863,744 5,369,500 (2,D00,000) 53,233,244 (6,843,083) (13,000,000) 33,390,161 2035 44,775 35 18,805,500 (12,093,000) 6,722,5DO (1,800,000) 373% 4,922,500 - 80,000 15,000 5,017,500 53,233,244 5,017,500 (2,000,000) 56,250,744 (7,048,417) (13,500,000) 35,702,327 2036 44,775 35 18,805,500 (12,445,000) 6,360,500 (1,800,000) 353% 4,560,500 - 80,000 15,000 4,655,500 56,250,744 4,655,500 (2,000,000) 58,906,244 (7,259,583) (14,000,000) 37,646,661 2037 44,775 35 18,805,500 (12,818,000) 5,987,500 (1,800,000) 333% 4,187,500 - 80,000 15,000 4,282,500 58,906,244 4,282,500 (2,000,000) 61,188,744 (7,477,167) (14,500,000) 39,211,577 2038 44,775 35 18,805,500 (13,203,0001 5,602,500 (1,800,000) 311% 3,802,500 - 80,000 15,000 3,897,SOO 61,188,744 3,997,500 (2,000,000) 63,086,244 (7,701,7501 (15,000,000) 40,394,494 2039 44,775 35 18,805,500 (13,599,000) 5,206,500 (1,800,0001 289% 3,406,500 - 80,000 15,000 3,501,500 63,086,244 3,501,500 (2,000,000) 64,587,744 (7,932,750) (15,500,00D) 41,154,994 2040 44,775 35 10,805,500 (14,007,000) 4,798,500 (1,800,000) 267% 2,998,500 - 80,000 15,13DO 3,093,500 64,587,744 3,093,500 (2,000,ODO) 65,681,244 (8,170,750) 116,000,000) 41,530,494 2041 44,775 35 18,805,500 (14,427,000) 4,378,500 - 4,378,500 - 80,000 15,000 4,473,500 65,681,244 4,473,500 (2,000,000) 68,154,744 (8,415,750) (16,500,000) 43,238,994 2042 44,775 35 18,805,500 (14,860,000) 3,945,500 - 3,945,500 - 80,000 15,000 4,040,500 68,154,744 4,040,500 (2,000,000) 70,195,244 (8,668,333) (17,000,000) 44,526,911 2043 44,775 35 18,805,500 (15,306,D00) 3,499,500 - 3,499,500 - 80,000 15,000 3,594,500 70,195,244 3,594,500 12,000,0001 71,789,744 (3,928,500) (17,500,D00) 45,361,244 2044 44,775 35 18,805,SDO (15,765,000) 3,040,500 - 3,040,500 - 80,000 15,000 3,135,500 71,789,744 3,135,500 (2,000,0001 72,925,244 (9,196,250) (18,000,D00) 45,728,994 /3 ATTACHMENT 4 14 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, PLEDGING ITS WASTEWATER ENTERPRISE FUNDS AS PAYMENT TO THE STATE WATER RESOURCES CONTROL BOARD UNDER THE CLEAN WATER STATE REVOLVING FUND FOR THE CITY OF PALM SPRINGS WASTEWATER TREATMENT PLANT UPGRADE, CITY PROJECT NO. 15- 14 WHEREAS, the City of Palm Springs, (the "City"), desires to finance the costs of constructing and/or reconstructing certain public facilities and improvements relating to its wastewater system, including certain treatment facilities, pipelines and other infrastructure, identified as the City of Palm Springs Wastewater Treatment Plant Upgrade, City Project No. 15-14, (the "Project"); and WHEREAS, the City intends to finance the construction and/or reconstruction of the Project or portions of the Project with moneys ("Project Funds") provided by the State of California, acting by and through the State Water Resources Control Board (the "State Water Board"); and WHEREAS, the State Water Board may fund the Project Funds through its Clean Water State Revolving Fund ("CWSRF"), and WHEREAS, the CWSRF can provide a very low interest loan to the City for Project Funds necessary to fund the Project; and WHEREAS, it is necessary to pledge the City's Wastewater Enterprise Funds as payment to the State Water Board for the Project Funds made available to the City through the CWSRF. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City Council hereby dedicates and pledges the Net Revenues of the Wastewater Enterprise fund and the Wastewater Enterprise fund to payment of any and all Clean Water State Revolving Fund financing for the Project. SECTION 2. The City Council hereby commits to collecting such revenues and maintaining such funds throughout the term of such financing and until the City has satisfied its repayment obligation thereunder unless modification or change is approved in writing by the State Water Resources Control Board. 15 Resolution No. Page 2 SECTION 3. The City Council hereby acknowledges that the City's pledge hereunder shall constitute a lien in favor of the State Water Resources Control Board on the foregoing funds and revenues without any further action necessary, so long as the financing agreement is outstanding. SECTION 4. The City Council hereby commits to maintaining the funds and revenues at levels sufficient to meet its obligations under the financing agreement, so long as the financing agreement is outstanding. ADOPTED THIS _day of , 2016. David H. Ready, City Manager ATTEST: James Thompson, City Clerk CERTIFICATION STATE OF CALIFORNIA ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on , 2016, by the following vote: AYES: NOES: ABSENT: ABSTAIN: James Thompson, City Clerk 1. 6