06-03-2014 City Council Special Meeting Packet
City of Grand Island
Tuesday, June 3, 2014
Special Meeting Packet
City Council:
Linna Dee Donaldson
John Gericke
Peg Gilbert
Chuck Haase
Julie Hehnke
Kent Mann
Vaughn Minton
Mitchell Nickerson
Mike Paulick
Mark Stelk
Mayor:
Jay Vavricek
City Administrator:
Mary Lou Brown
City Clerk:
RaNae Edwards
7:00 PM
Council Chambers - City Hall
100 East 1st Street
Grand Island Special Meeting - 6/3/2014 Page 1 / 42
City of Grand Island Tuesday, June 3, 2014
Call to Order
This is an open meeting of the Grand Island City Council. The City of Grand Island abides by the Open
Meetings Act in conducting business. A copy of the Open Meetings Act is displayed in the back of this room
as required by state law.
The City Council may vote to go into Closed Session on any agenda item as allowed by state law.
Invocation
Pledge of Allegiance
Roll Call
A - SUBMITTAL OF REQUESTS FOR FUTURE ITEMS
Individuals who have appropriate items for City Council consideration should complete the Request for
Future Agenda Items form located at the Information Booth. If the issue can be handled administratively
without Council action, notification will be provided. If the item is scheduled for a meeting or study
session, notification of the date will be given.
B - RESERVE TIME TO SPEAK ON AGENDA ITEMS
This is an opportunity for individuals wishing to provide input on any of tonight's agenda items to reserve
time to speak. Please come forward, state your name and address, and the Agenda topic on which you will
be speaking.
Grand Island Special Meeting - 6/3/2014 Page 2 / 42
City of Grand Island
Tuesday, June 3, 2014
Special Meeting
Item E-1
Public Hearing on Declaration of Intent to use Clean Water State
Revolving Fund (CWSRF) Loan proceeds for Sanitary Sewer
Collection System and Wastewater Treatment Plant Improvements
Staff Contact: John Collins, P.E. - Public Works Director
Grand Island Special Meeting - 6/3/2014 Page 3 / 42
Council Agenda Memo
From:Marvin Strong PE, Wastewater Plant Engineer
Meeting:June 3, 2014
Subject:Declaration of Intent to use Clean Water State Revolving
Fund (CWSRF) Loan proceeds for Sanitary Sewer
Collection System and Wastewater Treatment Plant
Improvements
Item #:E-1
Presenter(s):Jaye Monter, Finance Director
Marvin Strong P.E., Wastewater Plant Engineer
Anna White, Black & Veatch
Tom Fuenning, NDEQ
Michael Rogers, Gilmore & Bell, P.C.
Background
Public Works Staff has been working with Black and Veatch and Olsson Associations to
develop and implement a 5 Year Wastewater Capital Plan for the City of Grand Island
based on the following:
The comprehensive plan in CH2M Hill’s “Wastewater Collection and Treatment
Systems Comprehensive Plan Update”
Black and Veatch’s “Wastewater Treatment Plant and Collection System
Improvements – Draft Technical Memorandum #2 Hydraulic Model Validation
and Analysis”
Wastewater Projects intended to accommodate growth
Examples of Wastewater Projects included in the 5 Year Wastewater Capital
Improvement Plan are:
Plant – Headworks
Sanitary Sewer Collection System Rehabilitation
o South and West Interceptor Rehabilitation
o 4th and 5th Eddy to Vine Rehabilitation
o North Interceptor Phase I
Grand Island Special Meeting - 6/3/2014 Page 4 / 42
o North Interceptor Phase II
Growth – 281 Sanitary Sewer Improvements (District 530T)
Public Works representatives met with Nebraska Department of Environmental Quality
(NDEQ) representatives in December 2013 and explored the possibility of obtaining a
Loan from the Clean Water State Revolving Loan Fund Program (CWSRF) administered
by the NDEQ in lieu of Revenue Bonds to pay for the remaining wastewater projects.
The NDEQ subsequently approved up to $40,000,000 in CWSRF funds at 2 ¼% -2 1/2%
for distribution over multiple years. Projects classified as “Green” receive a ¼% lower
interest rate.
Discussion
With the more favorable interest rates it is possible to advance the project schedule to
complete more projects sooner. Lift Stations are high cost items that increase the
creation of damaging chemicals such as hydrogen sulfide (the chemical primarily
responsible for shortening the life of the Northeast Interceptor by more than 30%). The
new Headworks and Phases 1 and 2 of the North Interceptor allow 8 lift stations to be
abandoned. Accelerating construction will allow an additional 3 lift stations to be
abandoned, saving operating costs and extending the life of the new infrastructure.
The council declared its intention to issue bonds for $60 million on May 14, 2013. A
Revenue Bond was issued on September 17, 2013 for $35,430,000. This is the only
outstanding wastewater debt. We will need an estimated $38,844,700 in addition to the
Revenue Bond issued last year to finance the remaining portion of the ongoing
Wastewater Infrastructure Plan. Most of the remaining costs will occur when the North
Interceptor Phase 2 Project is bid later this year. We are asking the council to raise its
intention to issue debt from $60 million to $74,275,000 and recognize that up to
$40,000,000 of such borrowing is expected to be in the form of a loan from the CWSRF
Program administered by NDEQ. After the hearing held on June 3rd and NDEQ’s 30 day
comment period, it is expected that an ordinance will be presented to the City Council at
its July 8th meeting to give formal approval to the NDEQ borrowing in a principal amount
of up to $40,000,000. With the new interest rates this will be within the constraints of the
rate study approved last year.
Alternatives
Council has the following alternatives concerning the issue at hand. The Council may:
1.Move to approve
2.Refer the issue to a Committee
3.Postpone the issue to future date
4.Take no action on the issue
Grand Island Special Meeting - 6/3/2014 Page 5 / 42
Recommendation
City Administration recommends that the Council adopt the resolution to raise the
declaration of intent to issue debt from $60,000,000 to $74,275,000 and recognize that up
to $40,000,000 of such debt is expected to be borrowed from the Clean Water State
Revolving Loan Fund Program administered by the Nebraska Department of
Environmental Quality.
Sample Motion
Move to adopt the resolution raising the declaration of intent to issue debt from
$60,000,000 to $74,275,000 with up to $40,000,000 expected to be borrowed from the
Clean Water State Revolving Loan Fund Program administered by the Nebraska
Department of Environmental Quality.
Grand Island Special Meeting - 6/3/2014 Page 6 / 42
PUBLIC WORKS
Grand Island
Wastewater
Infrastructure
Improvement Plan
Grand Island Special Meeting - 6/3/2014 Page 7 / 42
PUBLIC WORKS
Grand Island Special Meeting - 6/3/2014 Page 8 / 42
PUBLIC WORKS
2010 Capital Project Report
The CH2MHill Report listed wastewater
infrastructure projects totaling $115.17 Million, most
of it before 2020
We completed some of the projects, are working on
some of the projects, eliminated some of the projects,
postponed some of the projects and added new
projects
Grand Island Special Meeting - 6/3/2014 Page 9 / 42
PUBLIC WORKS
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PUBLIC WORKS
Rate Study
Black and Veatch added to the information in the
CH2MHill report to develop a rate study to pay for
the Capital Improvements
They also developed a Wastewater Master Plan
through the year 2062
Grand Island Special Meeting - 6/3/2014 Page 11 / 42
Rate Study
Grand Island Special Meeting - 6/3/2014 Page 12 / 42
Rate Study
Grand Island Special Meeting - 6/3/2014 Page 13 / 42
PUBLIC WORKS
5 Year Wastewater Infrastructure Plan
The current 5 Year Wastewater Infrastructure Plan
was developed using information in the CH2MHill
and Black and Veatch Reports and incorporating
input from the field. Black and Veatch used it to
update the earlier rate study.
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PUBLIC WORKS
North Interceptor Phase 2
•The North Interceptor Phase 2 project (current
construction estimate is $17,215,000) should generate
Regional Contractor interest and favorable pricing.
Favorable pricing is likely to be extended to any
additional projects that were bid around the same
time.
Grand Island Special Meeting - 6/3/2014 Page 17 / 42
PUBLIC WORKS
Lift Station Abandonments
The Headworks and North Interceptor Phase 1 and
North Interceptor Phase 2 projects make it physically
possible to abandon 8 Lift Stations including LS #19.
A total of 11 Lift Stations are planned to be
abandoned.
Grand Island Special Meeting - 6/3/2014 Page 18 / 42
PUBLIC WORKS
Lift Station Abandonments
The estimated Lift Station O & M savings for the 11
lift stations is $162,000 per year
The estimated Lift Station and Forcemain straight line
depreciation cost is $284,000 per year
Lift Stations are a potential source of Hydrogen
Sulfide, which is the primary reason we are replacing
the North Interceptor prematurely
Grand Island Special Meeting - 6/3/2014 Page 19 / 42
PUBLIC WORKS
NDEQ CWSRF Loan
The NDEQ approved our CWSRF Loan application
up to $40,000,000 at interest rates between 2.25%
and 2.50%
NDEQ assess a 1% Administration Fee on the loan balance
“Green” wastewater projects are charged 1.25%
Non Green Wastewater Projects are charged 1.50%
Most of the projects we submitted are classified as “Green”
Grand Island Special Meeting - 6/3/2014 Page 20 / 42
PUBLIC WORKS
NDEQ CWSRF Loan
The Black and Veatch Rate Study conducted last year
assumed 4.3% Bond Interest Rates
We asked Black and Veatch to re-visit the Rate Study
done last year to determine how much additional
work could be done within the constraints of that
Rate Study using the lower interest rates.
Grand Island Special Meeting - 6/3/2014 Page 21 / 42
LST.19
LST. 2
LST. 4
LST. 6
LST. 7
LST. 8
LST. 1
LST. 15
LST. 23
LST. 22
LST. 14
LST. 24
LST. 20
LST. 18
LST. 17
LST. 13LST. 10
LST. 11
North Interceptor Phase 2
Husker Hwy
Lift Station 20Force Main
Wastewater Capital FundPlanning2013 - 2017
Legend
#*Existing Lift Station
Husker Hwy
""Lift Station 20 Force Main
N.Int Phase 2
Public Gravity
Public Force Main
Public Manhole
#*Existing Lift Station - Retire !
MK 2014
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7Capital Improvments Plan (CIP) Adjustments4/1/2012CIP Used in March 2011 Rate StudyProject 2011 2012 2013 2014 2015 2016 TotalAeration Basin Improvements$1,768,500 $1,768,500$3,537,000Methanol Feed System Improvements $50,000 $50,000$100,000Internal Recycle for Aeration Basins$1,262,000$1,262,000Final Clarifier Repair$600,000$600,000PVIP East 2011 Only $320,000$320,000New Assessment Districts $250,000 $250,000 $250,000 $250,000 $250,000$1,250,000Annual Sewer Rehab $190,000 $350,000 $350,000 $350,000 $350,000$1,590,000Misc. Items $100,000 $100,000 $100,000 $100,000 $100,000$500,000Projects Below In Current ContractsNorth Interceptor $420,000 $3,000,000 $4,640,000 $4,640,000 $3,000,000$15,700,000North Interceptor (Capital Ave)$8,360,000$8,360,000 Not in 5 yr CIP, but in Hill ReportCapital Aveunue Forcemain$490,000 $600,000$1,090,000Lift Station 21 Replacement$430,000$430,000Lift Station 21 Construction$600,000 $2,800,000$3,400,000Collection System Rehabilitation Lift Station #7 $160,000$160,000 4th‐5th/Eddy‐Vine $100,000 $1,000,000$1,100,000 South and West Interceptor$400,000 $910,000 $2,580,000$3,890,000WWTP$1,300,000 $2,420,000 $3,000,000 $2,500,000 $0$9,220,000$4,658,500 $9,428,500 $10,540,000 $19,910,000 $7,972,000 $0 $52,509,000Includes $8.36 Million for Capital Ave.Master PlanningSuggested CIP Adjustments‐Current 2011‐2015 ScheduleProject FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Total% of ConstructionAeration Basin Improvements $1,768,500 $1,768,500$3,537,000Methanol Feed System Improvements $50,000 $50,000$100,000Internal Recycle for Aeration Basins$1,262,000$1,262,000Final Clarifier Repair$600,000$600,000PVIP East 2011 Only $320,000$320,000New Assessment Districts $250,000 $250,000 $250,000 $250,000 $250,000 $250,000$1,500,000Annual Sewer Rehab $190,000 $350,000 $350,000 $350,000 $350,000 $350,000$1,940,000Misc. Items $100,000 $100,000 $100,000 $100,000 $100,000 $100,000$600,000Projects Below In Current Contracts$9,859,000Master Planning$407,004$407,004 $407,004Project Management (WWTP & Collection System Rehab)$103,385$103,385 $103,385North Interceptor Phase 1A ‐ Seedling Mile Road to WWTP Conceptual Design$44,190$44,190 2.0% Prelim, Final Desgin, and Bidding$211,940$211,940 9.8% Construction Phase Services$216,000$216,000 10.0% $472,130 Construction$2,160,000 $2,160,000 $2,160,000$2,632,130 Phase 1B ‐ 7th St to Seedling Mile Road Conceptual Design$125,773$125,773 2.1% Prelim, Final Desgin, and Bidding$174,641 $12,087$186,728 3.1% Construction Phase Services$301,000 $300,000 $601,000 10.0% $913,501 Construction$2,010,000 $4,000,000 $6,010,000 $6,010,000 Shift to 2016?$6,923,501 Phase 2 ‐ Capital Avenue (LS #19 to Geddes) Conceptual Design$107,677$107,677 0.7% Prelim, Final Desgin, and Bidding$300,000 $624,000 $924,000 6.2% Have to keep LS in service until all of Capital Ave sewer is in service. Construction Phase Services$500,000 $424,000 $924,000 6.2% $1,955,677 Shift to start in 2014 Construction$6,000,000 $9,000,000 $15,000,000 $15,000,000 Start at Geddes and construct west$16,955,677Collection System Rehabilitation Lift Station #7 Conceptual and Prelim Design$39,758$39,758 6.9% Final Design and Bidding$57,806$57,806 10.1% Construction Phase Services$53,600$53,600 9.3% $151,164 Construction$575,000$575,000 $575,000$726,164 4th‐5th/Eddy‐Vine Conceptual and Prelim Design$62,476$62,476 4.8% Final Design and Bidding$65,903$65,903 5.0% Construction Phase Services$118,400$118,400 9.0% $246,779 Construction$1,315,000 $1,315,000 $1,315,000$1,561,779 South and West Interceptor Conceptual And Prelim Design$60,798$60,798 1.7% Prelim, Final Desgin, and Bidding$48,247$160,000 $208,247 5.7% Construction Phase Services$85,000 $140,000 $225,000 6.2% $494,045 Construction$850,000 $2,795,000 $3,645,000 $3,645,000 "C" and "D" Sewers moved to 2016$4,139,045WWTP Conceptual and Prelim Design$274,807$274,807 1.8% Final Design and Bidding$735,491 $603,960$1,339,451 8.9% Construction Phase Services$281,400 $562,800 $562,800 $1,407,000 9.3% $3,021,258 Construction (including interceptors on site)$3,086,000 $7,000,000 $5,000,000 $15,086,000 $15,086,000 $1,200,000 interceptor costs here$18,107,258$2,678,500 $5,038,396 $13,267,447 $13,186,800 $12,762,800 $14,481,000 $61,414,943Original Contract1,225,868$ Amendment No. 1$1,910,075$7,764,943 17.73%$43,791,000Total Construction CostsEstimated Total Engineering Costs Including Master PlanningGrand IslandSpecial Meeting - 6/3/2014Page 24 / 42
City of Grand Island Nebraska ‐ 5 Year Wastewater Infrastructure Improvement Plan
Year 1 Year 2 Year 3 Year 4 Year 5
Estimated Total
Project Cost FY 2013 ‐
FY 2017
Grant SRF Loan Bonds Cash
FY 2013 (2012 ‐
2013)
Actual
FY 2014 (2013‐2014) FY 2015 (2014 ‐ 2015) FY 2016 (2015 ‐ 2016)FY 2017 (2016 ‐
2017)
General
Rate Study 29,964$ 29,964$ 18,031$ 11,932$
Automation/Asset Management 308,156$ 308,156$ 8,156$ 100,000$ 100,000$ 100,000$
Utility Billing Software Allocation 283,308$ 283,308$ 118,377$ 164,931$
General Total 621,428$ 621,428$ 144,564$ 276,863$ 100,000$ 100,000$
Vehicle
Sanitary Sewer Collection Sysem Truck 38,181$ 38,181$ 38,181$
Lift Station Truck 30,384$ 30,384$ 30,384$
Plant Utility Vehicle(s) 28,960$ 28,960$ 13,960$ 15,000$
Sanitary Sewer Collection Sysem Truck 90,000$ 90,000$ 45,000$ 45,000$
Sanitary Sewer Collection System Jetter 150,000$ 150,000$ 150,000$
Vehicle Total 337,525$ 337,525$ 38,181$ 44,344$ 15,000$ 195,000$ 45,000$
Lab
Oil & Grease Extractor 39,000$ 39,000$ 39,000$
E‐Coli Testing Apparatus 15,000$ 15,000$ 15,000$
Thermo Scientific Gallery 35,000$ 35,000$ 35,000$
Lab Total 89,000$ 89,000$ ‐$ 39,000$ 15,000$ 35,000$
Wastewater Treatment Plant
Aeration Basin Improvements 290,866$ 290,866$ 290,866$
Headworks 21,500,000$ 21,500,000$ 2,467,459$ 15,054,000$ 3,978,541$
Final Clarifier Rehabilitation
Final Clarifier #1 & #2 RAS Pumps 300,000$ 300,000$ 300,000$
Internal ReCycle Pumps 300,000$ ‐$ 300,000$
Expand Admin Bldg/Lab 500,000$ 500,000$ 500,000$
Wastewater Treatment Plant Total 22,890,866$ 21,500,000$ 1,090,866$ 2,758,325$ 15,054,000$ 4,278,541$ ‐$ 800,000$
Sanitary Sewer Collection System Rehabilitation
52,560$ 52,560$ 52,560$
GIS Survey Equipment 31,780$ 31,780$ 31,780$
50,000$ 50,000$ 50,000$
90,000$ 90,000$ 90,000$
North Interceptor Phase II 19,200,000$ 18,270,000$ 930,000$ 1,015,501$ 9,585,000$ 8,599,499$
Abandon LS #2/Route to North Interceptor 2,178,268$ 2,178,268$ 730,268$ 1,448,000$
Abandon LS#4/Route to North Interceptor 375,008$ 375,008$ 375,008$
Abandon LS#6 1,624,158$ 1,624,158$ 1,624,158$
Lift Station #7 Repairs/Improvements 780,648$ 654,318$ 126,330$ 768,817$ 11,831$
Abandon LS #8/ Route to North Interceptor 710,604$ 710,604$ 78,604$ 632,000$
Abandon LS#10/Route to North Interceptor 901,456$ 901,456$ 136,456$ 765,000$
Abandon LS#13/Route to North Interceptor 407,026$ 407,026$ 50,026$ 357,000$
Abandon LS#14 69,000$ 69,000$ 69,000$
Abandon LS#15/Route to North Interceptor 1,978,000$ 1,978,000$ 200,000$ 1,778,000$
Lift Station #20 Pumps 26,215$ 26,215$ 26,215$
Replace LS #20 Forcemain 2,727,656$ 2,727,656$ 2,727,656$
Husker Highway 2,946,250$ 2,846,250$ 100,000$ 783,250$ 2,163,000$
Rainbow Lakes Gravity Sewer 586,135$ 571,135$ 15,000$ 586,135$
Airport Interlocal Agreement 165,688$ 165,688$ 165,688$
4th & 5th Eddy to Vine 1,694,840$ 337,633$ 1,357,206$ 1,520,877$ 173,963$
5th Street Improvements 28,551$ 28,551$ 28,551$
North Interceptor Phase I 10,600,000$ 10,600,000$ 1,769,490$ 8,830,510$
WWTP Collections System Rehab 239,739$ 239,739$ 239,739$
South & West Interceptor 805,001$ 805,001$ 798,000$ 7,001$
Sewer Rehabilitation ‐ Various Locations 900,000$ 900,000$ ‐$ 100,000$ 100,000$ 350,000$ 350,000$
49,168,583$ 991,951$ 32,658,561$ 13,807,208$ 1,710,863$ 5,178,033$ 10,310,587$ 11,414,232$ 13,733,782$ 8,531,949$
Growth/New Customers
South 281/Tap District 2,132,230$ 2,032,230$ 100,000$ 900,230$ 1,232,000$
South 281 Sewer Assessment District 2,432,035$ 350,000$ 2,007,035$ 75,000$ 597,035$ 1,835,000$
Wildwood Industrial Subdivision 528 1,872,600$ 1,772,600$ 100,000$ 627,600$ 1,245,000$
Westwood Park Subdivision
Platte Valley Industrial Park 373,126$ 373,126$ 324,726$ 48,400$
Unknown Sewer Districts 850,000$ 850,000$ ‐$ 100,000$ 250,000$ 250,000$ 250,000$
Growth/New Customers Total 7,659,991$ 350,000$ 5,811,865$ 275,000$ 1,223,126$ 324,726$ 2,273,265$ 4,562,000$ 250,000$ 250,000$
Total Total 80,767,392$ 1,341,951$ 38,470,426$ 35,582,208$ 5,072,807$ 8,443,829$ 27,998,059$ 20,384,773$ 14,313,782$ 9,626,949$
JMS 05/21/2014
Green Infrastructure
Sanitary Sewer Collection System By‐Pass
Sanitary Sewer Collection System TV Camera
Sanitary Sewer Collection System Flow Meters
Sanitary Sewer Collection System
Rehabilitation Total
Grand Island Special Meeting - 6/3/2014 Page 25 / 42
June 3, 2014 Capital Financing Plan
Anna White Principal Consultant
Management Consulting Division
Grand Island Special Meeting - 6/3/2014 Page 26 / 42
2
What’s not changing? The approved revenue
increases will not increase. CITY OF GRAND ISLAND WASTEWATER UTILITY Overview
•Comprehensive Wastewater Rate Study completed in
October 2013
•Council approved 4 revenue increases (12%, 12%, 6%,
5%) from FY 2014 – FY 2017
•What’s changing?
•2014 – 2017 CIP – Increasing $9,432,100
•Revenue Bond financing will be replaced with SRF
Loans
•Lower interest rates
•Lower annual debt service
Grand Island Special Meeting - 6/3/2014 Page 27 / 42
3
CITY OF GRAND ISLAND WASTEWATER UTILITY Capital Improvement Program Changes
•2014 - 2017
•Rate Report - $65,267,600
•Now - $74,699,700
•Major Differences:
•The Headworks and North Interceptor Phase 1 and
North Interceptor Phase 2 projects make it physically
possible to abandon 8 Lift Stations
Grand Island Special Meeting - 6/3/2014 Page 28 / 42
4
CITY OF GRAND ISLAND WASTEWATER UTILITY SRF Loan Terms
•Repayment of Principal and Interest begins either 3-
year following award of the loan or at Initiation of
Operation (IOO) whichever is sooner
•3-year construction period
•1st year – 0.5% interest rate
•2nd and 3rd year – 0.5% interest plus administrative
fee
•Administrative fee based on loan amount, 1%
•20-year repayment period
•Interest rate based on green/non-green projects
•Ranges from 1.32% to 1.47%
•Administrative fee
Grand Island Special Meeting - 6/3/2014 Page 29 / 42
5
Approximately 82% of project costs are green
projects CITY OF GRAND ISLAND WASTEWATER UTILITY SRF Capital Projects
•Green
•North Interceptor Phase II
•Abandon LS #2
•Abandon LS #4
•Abandon LS #6
•Abandon LS #8
•Abandon LS #10
•Abandon LS #13
•Abandon LS #14
•Abandon LS #15
•Husker Highway
•Rainbow Lakes Gravity Sewer
•Non Green
•Replace LS #20 Forcemain
•South 281/Tap District
•South 281 Sewer Assessment
District
•Wildwood Industrial
Subdivision 528
Grand Island Special Meeting - 6/3/2014 Page 30 / 42
6
CITY OF GRAND ISLAND WASTEWATER UTILITY Revenue Bond and SRF Loan Proceeds
$32.0
$1.5
$2.8
$37.0
0
5
10
15
20
25
30
35
40
45
Rate Report Now$ millions SRF Loans
Revenue Bonds
Total amount of debt financing increasing from
$34,800,000 to $38,500,000
Grand Island Special Meeting - 6/3/2014 Page 31 / 42
7
CITY OF GRAND ISLAND WASTEWATER UTILITY Proposed 2014 – 2017 Capital
Improvement Program Financing
$29,488,000
$8,452,000
$350,000
$37,000,000
$1,500,000
2013 Bond Proceeds
Cash
Grants
SRF Loan Proceeds
Revenue Bond
Proceeds
Grand Island Special Meeting - 6/3/2014 Page 32 / 42
8
CITY OF GRAND ISLAND WASTEWATER UTILITY Annual Debt Service
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
Rate Report Now
2014
2015
2016
2017
Annual debt service increases from $3,015,900 in 2014
to $3,757,900 in 2017
Grand Island Special Meeting - 6/3/2014 Page 33 / 42
9
CITY OF GRAND ISLAND WASTEWATER UTILITY Other Changes
•Revenue from Proposed Rate Increases
•Number of months effective during the first year was
reduced from 12 to 10 to reflect 2 month lag until
revenue from increase is received
•Rates effective October 1
•Bill sent to customer reflecting new rates –
November 1
•Revenue from new rates received December 1
Grand Island Special Meeting - 6/3/2014 Page 34 / 42
10
CITY OF GRAND ISLAND WASTEWATER UTILITY Other Changes
•Other Operating Revenue
•2014 budget reduced to reflect 2013 actual which
was lower than projected
•Projected revenue is approximately $150,000 less per
year
•Interest Income
•Projected interest income reduced to reflect 2013
actual and 2014 year-to-date
•Projected interest income is approximately $250,000
less per year
Grand Island Special Meeting - 6/3/2014 Page 35 / 42
11
CITY OF GRAND ISLAND WASTEWATER UTILITY Summary
•Revenue reductions
•Revenue from revenue increases
•Other operating revenue
•Interest income
•Offset by reduction in debt service
•Results in ability to fund more capital projects
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Table 6City of Grand Island, NEWastewater UtilityProposed Capital Improvement ProgramLineNo. 2013 2014 2015 2016 2017 Total____________________________________________________$$$$$$1 Sewer Mains 4,733,900 12,572,000 15,652,000 12,054,400 4,276,800 49,289,1002 Lift Stations 768,800 11,800 803,700 2,780,900 5,319,600 9,684,800Wastewater Treatment3 Raw Water Pumping 1,135,000 6,924,800 1,885,000 0 0 9,944,8004 Preliminary Treatment 1,332,400 8,168,200 2,212,900 0 0 11,713,5005 Primary Sedimentation/Clarifiers 0 0 309,000 0 0 309,0006 Aeration Basins 290,900 0 0 0 327,800 618,7007 Aeration Equipment0000008 Corrosion/Odor Control Facilities0000009 Final Clarifiers00000010 Disinfection00000011 Sludge Handling00000012 General Plant 8,200 100,000 103,000 106,100 0 317,30013 Lab 0 0 15,500 37,100 0 52,60014 Vehicles 38,200 44,400 15,500 206,800 49,200 354,10015 Administration & General 136,400 176,800 0 0 546,400 859,60016 Land000000________ ________ ________ ________ ________ ________ 17 Total 8,443,800 27,998,000 20,996,600 15,185,300 10,519,800 83,143,500Check with D‐3 000000Rate_Report_Tables.xlsx5/25/2014Grand IslandSpecial Meeting - 6/3/2014Page 37 / 42
Table 7City of Grand Island, NEWastewater UtilityCapital Improvement Program FinancingLine Year Ending September 30,_______________________________________________________________No. Description 2013 2014 2015 2016 2017 Total_________________________________________________________________________________$$$$$$Sources of Funds1 Beginning of Year Balance 3,168,800 31,545,000 5,619,200 1,142,400 1,047,200 3,168,8002 Revenue Bond Proceeds 37,344,700 0 0 0 1,500,000 38,844,7003 CWSRF Loan Proceeds 0 1,470,000 14,674,000 13,144,000 7,712,000 37,000,0004 Cash Financing of Construction 0 300,000 2,000,000 2,100,000 1,900,000 6,300,0005 Grants/Developer Contributions 992,000 350,000 0 0 0 1,342,0006 Interest Income (a) 20,300 57,200 18,300 11,100 8,400 115,300________ ________ ________ ________ ________ ________ 7 Total Funds Available 41,525,800 33,722,200 22,311,500 16,397,500 12,167,600 86,770,800Application of Funds8 Major Capital Improvements 8,443,800 27,998,000 20,996,600 15,185,300 10,519,800 83,143,5009 Refunding Escrow Deposits00000010 Issuance Costs 567,300 105,000 172,500 165,000 135,000 1,144,80011 Bond Reserve Funds (b) 969,700 0 0 0 106,400 1,076,100________ ________ ________ ________ ________ ________ 12 Total Application of Funds 9,980,800 28,103,000 21,169,100 15,350,300 10,761,200 85,364,40013 End of Year Fund Balance 31,545,000 5,619,200 1,142,400 1,047,200 1,406,400 1,406,40014 Capital Reserve Balance 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000(a) Includes interest earnings on the capital reserve.(b) Reflects use of Bond Reserve Fund from Series 2003.Rate_Report_Tables.xlsx5/25/2014Grand IslandSpecial Meeting - 6/3/2014Page 38 / 42
Table 8
City of Grand Island, NE
Wastewater Utility
Comparison of Projected Revenue Under Existing
Rates With Projected Revenue Requirements
Line Year Ending September 30,_______________________________________________________
No. Description 2013 2014 2015 2016 2017_________________________________________________________________________
$$$$$
1 Revenue Under Existing Rates 8,442,300 8,113,300 8,134,400 8,155,300 8,176,300
Additional Revenue Required
Fiscal Revenue Months
Year Increase Effective________________________
2 2013 0.00% 10 00000
3 2014 12.00% 10 811,300 976,100 978,600 981,200
4 2015 12.00% 10 911,100 1,096,100 1,098,900
5 2016 6.00% 10 511,500 615,400
6 2017 5.00% 10 453,000________ ________ ________ ________ ________
7Total Additional Revenue 0 811,300 1,887,200 2,586,200 3,148,500
8Total Service Charge Revenue 8,442,300 8,924,600 10,021,600 10,741,500 11,324,800
9Other Operating Revenue 347,800 343,200 343,200 749,100 749,100
10 Interest Income ‐ Operations 500 800 800 700 900
11 Interest Income ‐ Reserve Funds (a) 18,600 17,400 16,700 17,200 17,700________ ________ ________ ________ ________
12 Total Revenue 8,809,200 9,286,000 10,382,300 11,508,500 12,092,500
13 Operation and Maintenance Expense 6,698,900 5,543,300 5,859,800 6,231,000 6,632,400________ ________ ________ ________ ________
14 Net Revenue 2,110,300 3,742,700 4,522,500 5,277,500 5,460,100
Debt Service
15 Existing Revenue Bonds 1,705,9000000
16 Proposed Revenue Bonds 0 3,008,500 2,125,500 2,515,400 2,532,200________ ________ ________ ________ ________
17 Total Revenue Bonds 1,705,900 3,008,500 2,125,500 2,515,400 2,532,200
18 Proposed CWSRF Loan 0 7,400 150,700 331,400 609,700________ ________ ________ ________ ________
19 Total Debt Service 1,705,900 3,015,900 2,276,200 2,846,800 3,141,900
20 Routine Capital Additions (b) 317,000 317,000 317,000 317,000 317,000
21 Cash Financing of Major Improvements 0 300,000 2,000,000 2,100,000 1,900,000
22 Additions to Operating Reserve 000090,800
23 Net Annual Balance 87,400 109,800 (70,700) 13,700 10,400
24 Beginning of Year Balance 0 87,400 197,200 126,500 140,200
25 End of Year Balance 87,400 197,200 126,500 140,200 150,600
26 Operating Reserve Balance 1,651,800 1,651,800 1,651,800 1,651,800 1,742,600
(a) Includes interest earnings on the Principal and Interest Account, Bond Reserve Fund, and operating reserve.
(b) Cash financing of Machinery & Equipment and Vehicles.
Rate_Report_Tables.xlsx 5/25/2014
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Table 9City of Grand Island, NEWastewater UtilityCoverage RequirementsLineYear Ending September 30,_____________________________________________________________________________________No. 2013 2014 2015 2016 2017 2018 2019 2020____________________________________________________________________$$$$$$$$Rate Covenant Coverage1 Projected Net Revenues 2,110,300 3,742,700 4,522,500 5,277,500 5,460,100 5,623,400 6,252,700 6,913,9002 Annual Debt Service (a) 1,705,900 3,015,900 2,276,200 2,846,800 3,141,900 3,757,900 4,338,500 4,835,3003 Projected Actual Net Revenue as aPercent of Debt Service (b) 1.24 x 1.24 x 1.99 x 1.85 x 1.74 x 1.50 x 1.44 x 1.43 x Additional Bond Coverage (c)4 Preceding Year Projected Net Revenues3,488,191 2,110,300 3,742,700 4,522,500 5,277,500 5,460,100 5,623,400 6,252,7005 Average Annual Debt Service 2,586,400 2,876,300 3,485,300 3,981,600 4,201,400 4,245,500 4,266,700 4,263,5006 Projected Actual Net Revenue as aPercent of Debt Service (d) 1.35 x 0.73 x 1.07 x 1.14 x 1.26 x 1.29 x 1.32 x 1.47 x 7 Ensuing Year Projected Net Revenues2,110,300 3,742,700 4,522,500 5,277,500 5,460,100 5,623,400 6,252,700 6,913,9008 Average Annual Debt Service 2,586,400 2,876,300 3,485,300 3,981,600 4,201,400 4,245,500 4,266,700 4,263,5009 Projected Actual Net Revenue as aPercent of Debt Service (e) 0.82 x 1.30 x 1.30 x 1.33 x 1.30 x 1.32 x 1.47 x 1.62 x (a) Includes Revenue Bonds and CWSRF Loans.(b) The Bond Ordinance requires net revenue to equal or exceed 1.10x actual debt service.(c) The City shall comply with one or the other of the two additional bonds tests.(d) The Bond Ordinance requires net revenue to equal or exceed 1.25x average annual debt service.(e)The Bond Ordinance requires net revenue to equal or exceed 1.25x average annual debt service in each of the three full fiscal years after the issuance of the proposed Additional Bonds.Rate_Report_Tables.xlsx5/25/2014Grand IslandSpecial Meeting - 6/3/2014Page 40 / 42
City of Grand Island
Tuesday, June 3, 2014
Special Meeting
Item I-1
#2014-138 - Consideration of Approving Intent to use Clean Water
State Revolving Fund (CWSRF) Loan Proceeds for Sanitary Sewer
Collection System and Wastewater Treatment Plant Improvements
Staff Contact: John Collins, P.E. - Public Works Director
Grand Island Special Meeting - 6/3/2014 Page 41 / 42
Approved as to Form ¤ ___________
May 30, 2014 ¤ City Attorney
R E S O L U T I O N 2014-138
WHEREAS; the City Council adopted Resolution 2013-150 on May 14, 2013,
which declared the City’s official intent to issue bonds in a maximum principal amount of
$60,000,000 to finance Sanitary Sewer Collection System and Wastewater Treatment Plant
Improvements; and
WHEREAS; the Mayor and Council of the City of Grand Island hereby find and
determine that it is necessary and appropriate to modify the official intent made in Resolution
2013-150 with respect to the principal amount of debt expected to be issued the City and the
City’s expectations to reimburse certain expenditures with the proceeds of such debt as
proposed; and
WHEREAS; this Resolution shall stand as a statement of the City’s official intent
under Regulation Section 1.150-2 of the regulations of the United States Treasury and shall
modify and not be in addition to the statement made in Resolution 2013-150, and for such
purposes the following information is hereby given:
1.A general functional description of the projects for which expenditures may
be made and reimbursement from debt proceeds provided is as follows:
Sanitary Sewer Collection System and Wastewater Treatment Plant
Improvements
2.The maximum principal amount of debt expected to be issued for such
projects is $74,275,000, which debt is expected to include up to $40,000,000
in principal amount of loan funds from the Clean Water State Revolving Loan
Fund program administered by the Nebraska Department of Environmental
Quality.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE
CITY OF GRAND ISLAND, NEBRASKA, that the declaration of intent to issue debt to
reimburse expenses resulting from the Wastewater Capital Improvements is hereby approved.
- - -
Adopted by the City Council of the City of Grand Island, Nebraska, June 3, 2014.
_____________________________
Jay Vavricek, Mayor
Attest:
_______________________________________
RaNae Edwards, City Clerk
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