HomeMy WebLinkAbout1990-04-17; Municipal Water District; 009; Application for Water Reclaimation Loan Funds-
3MWD - AGENDA BILL
3#& TITLE: DEPT. HD.
TG+LL!U&L APPLICATION FOR WATER RECLAMATION TT-EBE ClTY A
EPT.nnMTN LOAN FUNDS ClTY MGRa
IECOMMENDED ACTION:
1. Adopt Resolution No. 653 authorizing application for water reclamation loan funds.
2. Identify the Major Facilities Fund as the revenue source for the District's portion of the funding required.
ITEM EXPLANATION
Staff has been generating the information necessary to apply for the low interest loan currently being offered by the State Water Resources Control Board (S.W.R.C.B.). One of the items yet to be, completed is a Resolution granting formal authorization for staff to apply for the funds. Attached is the appropriate document.
Current engineering estimates place the total cost of the proposed reclaimed water facilities at $6,376,387. The project is currently envisioned to include a 1.4 million gallon reservoir, pumping station and an 18" distribution line. The S.W.R.C.B. has a $5,000,000 limit on the loan program. Therefore, there is a need for an additional $1,376,387 to finance the excess costs over the $5,000,000 limit. As described in the Encina Basin Plan, Leucadia C.W.D. will be contributing $835,000 from the proceeds of the low-interest loan they are pursuing. The District is then responsible for the remaining $541,387 in construction costs.
The terms of the S.W.R.C.B.'s program will also warrant some additional funds to cover cash flow shortfalls experienced during construction of the project. There is a 60 day delay in the processing of progress payments. Throughout construction an estimated $1,194,106 will be needed to fund these cash flow shortages. This expense must then be added to the $541,387 contribution for construction. The District can make a loan of Major Facilities Charge funds to the. reclaimed water fund to cover these initial cash flow demands. Any advance from the Major Facilities Charge Fund will be repaid with interest as specified in the calculation on the following page. The advance of these funds will not affect the District's ability to meet capital project demands in the future.
It should be stressed that this recommended action is only for the loan application and is not a request for an appropriation of funds at this time. The Board will be asked to take official action when and if the loan is received.
CMWD - Agenda Bill # bf-~q (continued) Page 2
FUNDING SUMMARY
Construction
Const. Cost Est. $ 6,376,387 Low-Interest Loan (5,000,000) Leucadia C.W.D. ( 835,000)
District Share Interest on Inter-Fund Loan (5 yrs. @ 8%)
$ 541,387 254,088
Construction Total $ 795,475
Additional Cash Flow Needs
Add/t'1 Cash Flow Interest on Inter-Fund Loan (3 yrs. @ 8%)
$ 1,194,106 310,123
Cash Flow Total $ 1,504,229
Total Funding Required $ 2,299,704 ------_-___ -m-s-------
FISCAL IMPACT
There is no specific fiscal impact at this time. When the low interest loan is received, staff will be requesting the appro- priations as specified in the table above. All loans will be eventually paid back from the proceeds of the sale of reclaimed water. The loan of $541,387 from water funds, if needed, will also be paid back from the sale of reclaimed water. Revisions of the project design may obviate the need for the loan of $541,387 from the water fund.
EXHIBITS
1. Resolution No. 653 Authorizing Application for Water Recla- mation Loan Funds.
RESOLUTION NO. 653
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT AUTHORIZING APPLICATION FOR WATER RECLAMATION LOAN FUNDS
BE IT RESOLVED that the Board of Directors of the
Carlsbad Municipal Water District hereby authorizes application
for a loan from the Water Reclamation Loan Program of the
California State Water Resources Control Board in the amount of
$5,000,000 for the design and construction of Encina Basin
Phase I Reclamation Facilities and authorizes execution of a loan
contract if a loan for this project is offered.
BE IT RESOLVED that the General Manager is hereby
authorized to submit a loan application and negotiate and execute
a loan contract for this project for and on behalf of the
Carlsbad Municipal Water District.
PASSED, APPROVED AND ADOPTED by the Board of Directors
of Carlsbad Municipal Water District at its regular meeting held
on the 17th day of April , 1990, by the following vote, to wit:
AYES: Board Members Lewis, Kulchin, Pettine, Mamaux and Larson
NOES: None
ABSENT: None
ATTEST:
aztk. 8. Lf?LkLh ALETHA L. RAUTENKRANZ. Secretary of the Board '