Wastewater Treatment and Disposal Upgrade Nampa Wastewater Advisory

Wastewater Treatment and Disposal Upgrade Nampa Wastewater Advisory Group Meeting #10 October 9, 2012

Workshop Agenda & Objectives • Present the outcomes of the Sept. 11 City Council workshop • Present DEQ SRF loan opportunity • Provide an overview of the judicial confirmation process • Review next steps

Sept. 11 City Council Workshop Outcomes Steve Burgos, Brown and Caldwell

City Council Workshop Outcomes Decision 1: Adopted the Wastewater Fund Industrial Incentive Policy Decision 2: Agreed with the proposed revenue requirements for the sewer fund through 2017

City Council Workshop Outcomes Decision 3: Directed the Wastewater Program Management Team to proceed with increasing rates equally across all customers Decision 4: Directed the Wastewater Program Management Team to prepare for a bond election

City Council Workshop Outcomes Next steps: –Develop Standard Operating Procedures (SOPs) related to Industrial Incentive Policy – completed by November 2012. –Finalize Cost of Service Study with rate increases allocated equally across customer classes – completed by late October. –Begin preparations for bond election – Spring 2013

DEQ SRF Loan Opportunity Michael Fuss, City of Nampa

DEQ SRF Loan Opportunity • Idaho DEQ State Revolving Fund Loans – Low-interest loans to build or repair wastewater treatment plants – Typical yearly funding level is $13 M – Priority list established based on project need – small cities are usually favored • Nampa applies for SRF funding every year

DEQ SRF Loan Opportunity • Things changed! – Approximately $50 million in available in 2013 from refinancing existing loans – Nampa is ranked 17 th on the list for funding in fiscal year 2013. – If all projects ahead of Nampa are funded there would be approximately $14 million available for Nampa • The total loan City of Nampa needs is $17 -$18 million.

DEQ SRF Loan Opportunity • SRF Loan – 2. 0% Interest • Revenue Bond – 4. 8% Interest • Receiving an SRF loan results in a $7. 5 million savings over Revenue Bonds

DEQ SRF Loan Opportunity • All loan application requirements must be met by January 1, 2013. • The loan application requires the City to verify it is authorized to take on debt. • Cities can only enter into debt by voter approval or Judicial Confirmation

DEQ SRF Loan Opportunity • The deadline to file for the Nov. 2012 bond election was Aug. 31, 2012. • The deadline didn’t allow enough time for Nampa to meet the final request.

Urgency • The only option now available to Nampa to meet the 2013 SRF loan application requirement is to pursue Judicial Confirmation to allow Nampa to take on debt • The City Council on Sept 11 voted to have a public hearing to receive public input on whether to pursue Judicial Confirmation

DEQ SRF Loan Opportunity • A successful Judicial Confirmation outcome will allow Nampa to finalize their SRF Application. • A public hearing is set for Oct. 15 to receive public input on whether the City should pursue Judicial Confirmation • Three options: – Judicial Confirmation – Bond Election – Pay Cash

DEQ SRF Opportunity - Considerations • The deadlines are tight • No time for slipups in schedule

DEQ FY 2014 SRF Loan • Nampa can resubmit for any remaining funds for FY 2014 • All other entities can resubmit for FY 2014 as well • Scoring and ranking for FY 2014 remaining funds can change

Judicial Confirmation Process Overview Matthew Johnson, White Peterson

Judicial Confirmation Article 8 Section 3 of Idaho Constitution • Seek judicial determination of validity to enter into loan as an “ordinary and necessary” expense • Timing of process will be tight for Jan. 1 deadline even with immediate start

Judicial Confirmation Idaho Code 7 -1301 et seq Schedule: – Set and notice public hearing (15 days prior to hearing) – Public hearing (14 days until they can authorize the action) – Council action on filing petition (Wait 30 days before hearing) – District Court hearing and determination – Potential appeals (42 days from judgment)

Judicial Confirmation Idaho Code 7 -1301 et seq • Factors the judge will consider: – Traditional and longstanding municipal function – Improvements vs. expansion – Urgency – Certainty on permit requirements

What’s Next Rosemary Curtin, RBCI

Next Steps October – 1 Facility Plan was submitted to DEQ for review – 15 Judicial Confirmation public hearing – 29 Special Council Meeting to authorize filing the Judicial Confirmation petition November – 15 Facility Plan available for public review – 29 Special City Council meeting to adopt Facility Plan

Next Steps December – 17 City Council must authorize Public Works to file 2013 SRF application – 31 2013 SRF application will be submitted January – 17 -31 Phase I Environmental Information Document available for public comment

If Judicial Confirmation is not successful the City may choose to hold a bond election February – 19 Special City Council meeting to authorize the May election – 19 Special City Council meeting to set the date for wastewater rate increase public hearing – 20 Process to educate the community of Nampa about the wastewater rate increase begins

Next Steps March – 1 Last day to file ballot request with Canyon County for bond election April – 22 Special City Council public hearing for the wastewater rate increase

Next Steps May – 21 Hold bond election July – 1 Rate increase effective

Next Steps • NWAG next steps – Meet in early November to discuss rate increases

Thank You Nampa Wastewater Advisory Group Workshop Wastewater Program Update October 9, 2012 Questions? For more information visit www. cityofnampa. us/wastewater