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ADMINISTRATIVE
COMMITTEE |
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7. |
SEMI-ANNUAL REPORT ON THE
CAWD/PBCSD WASTEWATER RECLAMATION PROJECT |
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Meeting
Date: |
February 12, 2007 |
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: |
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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 12, 2007 and recommended ______________. |
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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
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Par of 1992 Certificates |
$33,900,000 |
Investments as of December 31, 2006:
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Description |
Institution |
Market Value |
Rate/Yield |
Term
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Interest Fund |
U.S. Bank |
$87,397.33 |
4.67% |
Daily |
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Certificate Payment Fund |
U.S. Bank |
$2,318 |
4.66% |
Daily |
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Acquisition/Misc. Funds |
U.S. Bank |
$34 |
5.93% |
Daily |
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Water Sales Revenue Acct. |
Bank of |
$713,285.12 |
3.77% |
Daily |
MPWMD transferred advances in the amount of $477,410 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, i.e. sale of reclaimed water to Del Monte Forest golf courses owners
and Robert Louis Stevenson school, 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 Pebble Beach Company made a principal payment of $1,100,000 during this reporting period. The outstanding balance after this payment is $30,400,000.
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 3.28% and 3.79%.
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. Since there were sufficient funds in the water sales revenue account during this reporting period, the District made all interest payments as detailed below:
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Month |
Amount |
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July 2006 |
$ 89,369.01 |
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August 2006 |
$ 86,230.30 |
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September 2006 |
$ 82,914.97 |
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October 2006 |
$ 85,018.15 |
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November 2006 |
$ 83,468.87 |
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December 2006 |
$ 87,241.75 |
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Total |
$514,243.05 |
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