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ITEM: |
INFORMATIONAL
ITEMS/STAFF REPORTS |
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24. |
SEMI-ANNUAL REPORT ON THE
CAWD/PBCSD RECYCLED WATER PROJECT |
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Meeting
Date: |
February 24, 2005 |
Budgeted: |
N/A |
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From: |
David A.
Berger, |
Program/ |
N/A |
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General
Manager |
Line Item No.: |
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Prepared
By: |
Rick
Dickhaut |
Cost Estimate: |
N/A |
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General Counsel Approval: N/A |
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Committee Recommendation: The Administrative Committee reviewed this item on February 7, 2005 and recommended approval. |
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CEQA Compliance: N/A |
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This report relates to the original CAWD/PBCSD Wastewater Reclamation Project (Phase I) only and does not contain any information related to the CAWD/PBCSD Recycled Water Expansion Project (Phase II). On December 10, 1992, the Monterey Peninsula Water Management District (MPWMD) sold $33,900,000 worth of variable rate certificates of participation to finance the wastewater reclamation project in Pebble Beach. The tables below summarize the investment information on funds held for future use, disbursements, and interest rate trends on the outstanding certificates for the period July 1, 2004 through December 31, 2004.
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Par of 1992 Certificates |
$33,900,000 |
Investments as of December 31, 2004:
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Description |
Institution |
Market Value |
Rate/Yield |
Term
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Interest Fund |
U.S. Bank |
$58 |
1.73% |
Daily |
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Certificate Payment Fund |
U.S. Bank |
$2,170 |
1.24% |
Daily |
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Acquisition/Misc. Funds |
U.S. Bank |
$24 |
0.00% |
Daily |
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O & M Reserve Fund |
Wachovia Securities |
$304,342 |
3.91% |
Various |
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Renewal & Replacement Fund |
Wachovia Securities |
$233,240 |
4.13% |
Various |
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Other Funds: |
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Water Sales Revenue Acct. |
Bank of America |
$720,837 |
1.41% |
Daily |
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MPWMD transferred advances in the amount of $1,001,278 from the Water Sales Revenue Account to the Carmel Area Wastewater District during this reporting period. Advance payments are provided in accordance with the terms and conditions of Section 5.5 (a) of the Operation and Maintenance Agreement.
As provided in the Water Purchase
Agreement, the obligation of the District to make disbursements is a special
obligation of the District, payable solely from net operating revenues of the
project, monies in the Revenue Fund, and other funds described in the Trust
Agreement. In no event, will disbursements be payable out of any funds or
properties of the District other than such sources.
Principal and Interest on Certificates:
The interest rate on the Series 1992 Certificates was set initially at 2.30 percent per annum until December 16, 1992. On that date and weekly thereafter, so long as the certificates are in the variable mode, the Remarketing Agent, Stone & Youngberg, determines the rate of interest. Interest rates for this reporting period have fluctuated between 1.02% and 2.00%.
On June 7, 2000, the Reclamation Management Committee noted that the Capital Interest Fund, used for payment of monthly interest on the outstanding certificates would soon be exhausted. The Committee discussed the use of water sales revenue to make future interest payments. On July 3, 2000, the Reclamation Technical Advisory Committee affirmed the use of water sales revenue for interest payments when excess funds are available. The interest payment shown in the table below was made from the Revenue Account maintained by the MPWMD during this reporting period. The Pebble Beach Company made all other interest payments during this reporting period as well as the $1,000,000 principal payment due during this reporting period.
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Month |
Interest
Amt. |
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June 2004 |
$30,155.73 |
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