ITEM:

INFORMATIONAL ITEMS/STAFF REPORTS

 

26.

SEMI-ANNUAL FINANCIAL REPORT ON THE CAWD/PBCSD WASTEWATER RECLAMATION PROJECT

 

Meeting Date:

February 26, 2009

Budgeted:

N/A

 

From:

Darby Fuerst,

Program/

N/A

 

General Manager

Line Item No.:

 

Prepared By:

Rick Dickhaut

Cost Estimate:

N/A

 

General Counsel Approval:N/A

Committee Recommendation: The Administrative Committee reviewed this item on February 17, 2009 and recommended approval on a 3 to 0 vote.

CEQA Compliance:N/A

 

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 through December 31, 2008.During the first reporting period in 2006, the Wastewater Reclamation Projectís (Project) Operations and Maintenance Reserve and Renewal and Replacement Reserve accounts were transferred to the Carmel Area Wastewater District in accordance with the Projectís Amended Construction and Operations Agreement dated December 15, 2004.The Projectís Operations and Maintenance account (Bank of America) and Certificate of Participation accounts (U.S. Bank) remain under the control of the District and will continue to be reported on this report and future reports.

 

 

Par of 1992 Certificates

 

$33,900,000

 

Investments as of December 31, 2008:

 

Description

 

Institution

Market Value

Rate/Yield

Term

Interest Fund

U.S. Bank

$310

0.02%

Daily

 

Certificate Payment Fund

 

U.S. Bank

$2,460

0.02%

Daily

Acquisition/Misc. Funds

U.S. Bank

$36

0.00%

Daily

 

 

Water Sales Revenue Acct.

 

Bank of America

 

$886,047

 

1.14%

 

Daily

Operation and Maintenance Disbursements:

 

MPWMD transferred advances in the amount of $850,000 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:

 

A principal payment in the amount of $1,300,000 was made during this reporting period.The outstanding balance is currently $26,800,000.

 

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 0.25% and 8.00%.

 

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.Since there were not sufficient funds in the water sales revenue account during this reporting period, the Pebble Beach Company made all monthly interest payments.

 

EXHIBITS

None

 

 

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