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Home My WebLink About2001-021 Interfund Loan Appropriation for Implementation of Del Monte Wastewater Agreement -r ORDINANCE NO. 2001- 21 AN ORDINANCE amending the 2001 budget for the City of Yakima; and making an appropriation of $1,420,000 in the 478 - Wastewater Facility Project Fund for expenditure during 2001 for construction and rehabilitation of the wastewater treatment facility. WHEREAS, the amount of $1,420,000 must be appropriated within the 478 - Wastewater Facility Project Fund for expenditure during 2001 for construction and rehabilitation of the wastewater treatment facility, and WHEREAS, at the time of the adoption of the 2001 budget it could not reasonably have been foreseen that the appropriation provided for by this ordinance would be required; and the City Council finds that an emergency exists of the type contemplated by RCW 35.33.091 and that it is in the best interests of the City to make the appropriation herein provided, now, therefore, BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. The amount of $1,420,000 is hereby appropriated from the Unappropriated Fund Balance in the 478 - Wastewater Facility Project Fund to the various accounts, as specified in Schedule 1 attached hereto and incorporated herein. Section 2. This ordinance is one making an appropriation and shall take effect immediately upon its passage, approval and publication as provided by law and by the City Charter. PASSED BY THE CITY COUNCIL, signed and approved this j 5"r day of M Ay 2001. MARY PLACE, MAYOR ATTEST: CITY CLERK First Reading: 4 - 17 - 2001 Publication Date: 5 - 2001 Effective Date: 5 - 2001 cje 04/11/01 APPROP.ORDINANCE PAGE 1 SCHEDULE I Wastewater Facility Project RESOURCES: Interfund Loan Receipts 478 -3- 478 - 238 - 1942 - 38110 -ILP $1,420,000.00 TOTAL RESOURCES $1,420,000.00 APPROPRIATIONS: Del Monte Conversion 478 -4- 478 - 238 - 1942 - 59435 -650 $1,420,000.00 TOTAL APPROPRIATIONS $1,420,000.00 • BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. For Meeting Of 4/17/01 ITEM TITLE: Implementation of Del Monte Wastewater Agreement SUBMITTED BY: Dick Zais, City Manager Ray Paolella, City Attorney Rita Anson, Finance Director Douglas Mayo, Wastewater Manager CONTACT PERSON/TELEPHONE: Dick Zais / 575 -6040 REQUESTED ACTION: To enable the City to fulfill its commitment to Ecology and Del Monte, staff presents for your consideration and action: A) Consideration of an Ordinance Amending the 2001 Wastewater Capital Budget (Fund 478) Providing authorization for Expenditures to convert the treatment of Del Monte's wastewater from the sprayfield to the treatment facility at an estimated cost of $1,420,000. B) Consideration of a Resolution Authorizing an Interfund Loan, from Fund 551 - Equipment Rental Fund, at an indexed interest rate currently less than 5.0 %, for Capital Expenditures for the Treatment Plant conversion. C) Consideration of an Ordinance Amending the Municipal Code Enacting Increase in Wastewater Rates (2 %) to cover Financing of the loan and future revenue bond issue for this project. (continued) Resolution 1 Ordinance 2 Other (Specify) Contract Mail to (name and address): Phone Funding Source Wastewater Retai tomers, Del Monte, Wholesale Customers (Fund 478 ) APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: A) Read appropriation ordinance by title only at 4/17/01 Council meeting. Pass appropriation ordinance following second reading at 5/1/01 meeting. B) Adopt resolution authorizing an interfund loan. C) Pass ordinance enacting a 2% wastewater rate increase. BOARD /COMMISSION RECOMMENDATION: COUNCIL ACTION: (A) . First reading of ordinance; second reading scheduled 5 - 1 - 01. (B). Resolution adopted. RESOLUTION NO. R- 2001 -69 (C). Ordinance passed. ORDINANCE NO. 2001 -17 5 - - 2001: (A). Ordinance passed. ORDINANCE NO. 2001 -21 (Continued from page one) SUMMARY EXPLANATION: On February 6, 2001, by resolution R- 2001 -26, City Council authorized, approved, and ratified a Draft Statement of Intent Regarding proposed, elements of a settlement with Del Monte Corporation. Part one of this settlement speaks to Future Treatment of Del Monte Wastewater. Recent discussions and negotiations between the City, Department of Ecology and Del Monte have lead to the conclusion that future Del Monte food processing wastewater should be treated by the City's Wastewater Treatment Facility. The sprayfield shall be retired from its historic usage. A full scale pilot study, conducted last fall, has shown that considerable construction and rehabilitation to the treatment facility is required immediately to accommodate treatment of Del Monte fruit processing wastewater by the 2001 season. Review of the future demands of growth within our Wastewater Service area show that most of this same construction is needed for future growth without Del Monte. Due to the seasonality of Del Monte's operation, the same construction can fulfill both requirements. Also on February 6, 2001, by resolution R- 2001 -18, City Council authorized the engagement of CH2M -Hill for professional services for this project. The design element of their contract is well under way. The estimated project cost for the immediate work is $1,420,000. This cost will be shared by Del Monte, City rate payers, and our wholesale customers (Terrace Heights and Union Gap). Per the above mentioned settlement, Del Monte shall contribute $495,500 directly for these improvements, they also will contribute $441,514 for an allocation of existing capacity. Their total contribution of $937,014 will be paid over a 20 year time frame with annual payments of approximately $74,000. Our wholesale customers shall pay their allocation of the improvements plus debt coverage with annual payments of approximately $17,600. The remaining debt service and debt coverage shall be born by City retail rate payers. (Approximately $145,500 annually) Staff proposes an "across- the - board" increase of 2% to all retail customer classes to finance the City's obligation. Because of the cost involved in preparing a bond issue, we chose to utilize . an interfund loan for short term interim financing. After resolution of litigation, the City shall pursue.a revenue bond for the long term financing of this project.