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Home My WebLink AboutR-1991-D5955 Loan0 • • RESOLUTION NO 1) 5 9 5 5 A RESOLUTION authorizing the City Manager to sign all applications, loan agreements and amendments, and other documents relating to wastewater facilities and collection system planning, design, and construction loan financing. WHEREAS, the City of Yakima has developed a plan for wastewater collection, treatment, and disposal for the Yakima Regional Urban Area; such plan being necessary to determine the needs of the area for health, safety and well being of the people; and WHEREAS, the plan is developed in accordance with the requirements of Public Law 92-500 and 95-217, and has set forth facilities and systems required to be constructed, improved and rehabilitated to serve the needs of the area; and WHEREAS, the costs of planning, design and construction of the wastewater collection and treatment facilities are eligible for State Revolving Fund loan financing; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA. The City Manager is duly authorized to sign applications, loan agreements, and amendments, and other documents relating to wastewater facilities and collection systems planning, design, and construction programs. ADOPTED THIS aSf day of _ 1991 ATTEST. SRF Loan Resolution 6/21/91 cw CITY CLERK MAYOR Memorandum June 21, 1991 To: Dick Zais, City Manager From: Denny Covell, Director of Engineering and ' ' ' s Chris Waarvick, Wastewater Superintenden Bruce Bates, Assistant Superintendent Doug Mayo, Sanitary Engineer Re: State Revolving Fund Loan Wastewater Division staff have prepared and are ready to submit applications for low interest loans from the State Water Pollution Control Revolving Fund (SRF). Your review, approval, and signature on the attached loan application and attachments are required. This funding program was developed to replace the EPA Grant program which is no longer available. The program is administered by the same Ecology staff who handle the existing grant. An agenda item is prepared to seek by Council Resolution approval for your signature to execute the appropriate SRF documents SRF provides low interest loans for projects that improve and protect the states water quality. The SRF program covers some activities which were ineligible under the Grant program; ie: reserve capacity. However, the money cannot be used as "local share" to match the Grant The terms available under this program are: Term Interest 0-5 yrs 0% 6-14 yrs 4% 15-20 yrs 5% Staff recommends submitting two applications this funding cycle: 1) Financing grant ineligible portion of the current Wastewater Treatment Facilities Upgrade (for that portion of the existing project which was ineligible for EPA assistance because it was deemed for "Reserve Capacity"). This applies to approximately 17% of the total project or $2,580,000. Staff suggests we seek this amount on a 14 year 4% term. Annual payments would be $74,500 SRF Mertes Zais Page 1 6/21/91 less than if this money was obtained at 7%. Total payments would be reduced by over one million dollars (See attached spreadsheets). The Wastewater Facility's budget currently has money in the 478 account to finance this work. However, receipt of this loan would allow the use of these existing obligated City reserves to ao toward h- .n• • •r 'mmin-n I n--•-•' -•i .I 'mprovements or programs. Examples are: third final clarifier. digestor roof replacement. industrial waste pretreatment. replat:ement o_ over capacity or leaking sewer pipeline 2) We also suggest applying for a loan to finance, 5 years of the City's ongoing Inflow/Infiltration (1/1) Program. This program is required by our NPDES Permit and are extensively detailed in our Comprehensive Plan for Sewerage Systems and our Facilities Plan Update. The projects include activities (grouting of leaking joints and manholes, slip lining or replacement of pipes which have deteriorated, identification of leaking private connections) which will decrease the flow of extraneous flow into the collection system. The total (1/1) program as outlined in the "Comprehensive Plan" has an estimated annual cost of $614,000. Einangina Qf this programa five year 0% interest SRF loan would delay the financial impact of this program and allow us to use; current assets for other concerns. We would not begin repayment until the conclusion of the five year program. The current budget has $300,000 in the 476 Sewer Construction Fund and $60,000 in the 473 Sewer Operating Fund annually programmed and considered in the recent Cost of Service rate analysis. SRF Memo Zais Page 2 6/21/91 SRF Plant Upgrade Page 1 Loan Analysis Principal $2,580,000 Annual interest rate 4.00% Term (years) 14 Periods (per year) 2 Total Amount Semi -Annual Payment $121,233 Paid 3,394,524 No. of Payments 28 Payment Payment Beginning Ending Cumulative Total no. dates balance Interest Principal balance _ Interest Payment 1 Jun -93 2,580,000 51,600 , 69,633 2,510,367 51,600 121,233 2 Dec -93 2,510,367 50,207 71,026 2,439,341 101,807 121,233 3 Jun -94 2,439,341 48,787 72,446 2,366,895 150,594 121,233 4 Dec -94 2,366,895 47,338 73,895 2,293,000 197,932 121,233 5 Jun -95 2,293,000 45,860 75,373 2,217,627 243,792 121,233 6 Dec -95 2,217,627 44,353 76,880 2,140,747 288,145 121,233 7 Jun -96 2,140,747 42,815 78,418 2,062,329 330,960 121,233 8 Dec -96 2,062,329 41,247 79,986 1,982,342 372,206 121,233 9 Jun -97 1,982,342 39,647 81,586 1,900,756 411,853 121,233 10 Dec -97 1,900,756 38,015 83,218 1,817,538 449,868 121,233 11 Jun -98 1,817,538 36,351 84,882 1,732,656 486,219 121,233 1 2 Dec -98 1,732,656 34,653 86,580 1,646,076 520,872 121,233 13 Jun -99 1,646,076 32,922 88,311 1,557,764 553,793 121,233 14 Der -99 1,557,764 31,155 90,078 1,467,687 584,949 121,233 1 5 Jur-00 1,467,687 29,354 91,879 1,375,807 614,302 121,233 1 6 Dec -00 1,375,807 27,516 93,717 1,282,091 641,819 121,233 17 Jus -01 1,282,091 25,642 95,591 1,186,499 667,460 121,233 1 8 Dec -01 1,186,499 23,730 97,503 1,088,996 691,190 121,233 1 9 Jun -02 1,088,996 21,780 99,453 989,543 712,970 121,233 20 Dec -02 989,543 19,791 101,442 888,101 732,761 121,233 21 Jun -03 888,101 17,762 103,471 784,630 750,523 121,233 22 Dec -03 784,630 15,693 105,540 679,090 766,216 121,233 23 Jun -04 679,090 13,582 107,651 571,439 779,798 121,233 24 Dec -04 571,439 11,429 109,804 461,634 791,226 121,233 25 Jun -05 461,634 9,233 112,000 349,634 800,459 121,233 26 Dec -05 349,634 6,993 114,240 235,394 807,452 121,233 27 Jun -06 235,394 4,708 116,:.'5 118,869 812,160 121,233 28 Dec -06 118,869 2,377 118,856 13 814,537 121,233 Page 1 SRF Plant Upgrade 7% Page 1 Loan Analysis Principal $2,800,000 Includes $220,000 bond issuance Annual interest rate 7.00% and reserve costs Term (years) 14 Periods (per year) 2 Total Amount Semi -Annual Payment $158,487 Paid 4 437,636 No. of Payments 28 Payment Payment Beginning Ending Cumulative Total no. dates balance Interest Principal balance Interest Payment 1 Jun -93 2,800,000 98,000 60,487 2,739,513 98,000 158 487 2 Dec -93 2,739,513 95,883 62,604 2,676,909 193,883 158,487 3 Jun -94 2,676,909 93,692 64,795 2,612,114 287,575 158,487 4 Dec -94 2,612,114 91,424 67,063 2,545,051 378,999 158,487 5 Jun -95 2,545,051 89,077 69,410 2,475,641 468,076 158,487 6 Dec -95 2,475,641 86,647 71,840 74,354 2 403,801 2,329,447 554,723 638,856 158,487 158,487 7 Jun -96 2,403,801 84,133 8 Dec -96 2,329,447 81,531 76,956 2,252,491 720,387 158,487 9 Jun -97 2,252,491 78,837 79,650 2,172,841 799,224 158,487 10 Dec -97 2,172,841 76,049 82,438 2,090,403 875,273 158,487 11 Jun -98 2,090,403 73,164 85,323 2,005,080 948,437 158,487 12 Dec -98 2,005,080 70,178 88,309 1,916,771 1,018,615 158,487 13 Jun -99 1,916,771 67,087 91,400 1,825,371 1,085,702 158,487 14 Dec -99 1,825,371 63,888 94,599 1,730,772 1,149,590 158,487 158,487 15 Jun -00 1,730,772 60,577 97,910 1,632,862 1,210,167 16 Dec -00 1,632,862 57,150 101,337 1,531,525 1,267,317 158,487 17 Jun -01 1,531 ,525 53,603 104,884 1,426,642 1,320,921 158,487 18 Dec -01 1,426,642 49,932 108 555 1 318,087 1,370,853 158,487 19 Jun -02 1,318,087 46 133 112,354 1 205 733 1,416,986 158,487 20 Dec -02 1,205,733 42,201 116,286 1,089,447 1,459,187 158,487 21 Jun -03 1,089,447 38,131 120,356 969,091 1,497,318 158,487 22 Dec -03 969,091 33,918 124,569 844,522 1,531,236 158,487 23 Jun -04 844,522 29,558 128,929 715,593 1,560,794 158,487 24 Dec -04 715,593 25,046 133,441 582,152 1 585,840 158,487 25 Jun -05 582,152 20,375 138,112 444,040 1,606,215 158,487 26 Dec -05 444,040 15,541 142,946 301,094 1,621,756 158,487 27 Jun -06 301,094 10,538 147,949 153,146 1,632,295 158,487 28 Dec -06 153 146 5 360 153 127 19 1,637,655 158,487 Page 1 Marcella Lynn Howard, e Z McLane Elementary, Olympia who will live dowttream from us? .. it maybe our children. State Water Pollution Control Revolving Fund (SRF) PROGRAM GUIDELINES WASHINGTON STATE DEPARTMENT OF iiMMBECOLOGY Revised May 1991 89-19