HomeMy WebLinkAbout04/25/2013 - Workshop Agenda Packet - City CouncilTable of Contents
Agenda 2
Workshop No. 6 - Utility External Outage Viewer
Coversheet Revised 5
Workshop No. 7 - 2013 Bond Sale and Refunding Presentation
Coversheet Revised 6
Schedule 8
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April 25, 2013
Workshop Agenda Item No. 6
Utility External Outage Viewer
To: Frank Simpson, City Manager
From: Timothy Crabb, Director of Electric Utilities
Agenda Caption: Presentation and discussion regarding a web based utility outage viewer
enabling customers to see real time electric outage information.
Relationship to Strategic Goals: (Select all that apply)
1. Core Services and Infrastructure
Recommendation(s): N/A
Summary: College Station Utilities has recently upgraded the MilSoft OMS and IVR system
enabling the Dispatch operators to more effectively manage outages. Included in this
package is a web based outage viewer that will allow our customers to view real time data
of where electric outages are occurring, an estimated time of repair, and whether a crew
has been assigned to the outage. This presentation is to demonstrate the proposed viewer
and the information available by adding it to the City’s website.
Budget & Financial Summary: N/A
Reviewed and Approved by Legal: N/A
Attachments: N/A
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April 25, 2013
Workshop Agenda Item No. 7
2013 Bond Sale and Refunding Presentation
To: Frank Simpson, City Manager
From: Jeff Kersten, Executive Director of Business Services
Agenda Caption: Presentation, possible action, and discussion on City of College
Station 2013 bond sale and refunding and financing structure.
Relationship to Strategic Goals: Goal 1.1 Spending taxpayer money efficiently.
Recommendation(s): Staff recommends the City Council receive the presentation
and provide any input or direction desired.
Summary: As part of a growing community, the City of College Station has
infrastructure needs that must be met. The City has a capital plan to address those
needs. Categories of capital projects include streets, parks, facilities, and utilities
including electric, water, wastewater and drainage. This presentation will provide an
overview of the 2013 proposed capital project funding list, potential refunding
opportunity, and structure of financing.
The City has the opportunity to refund a portion of its General Obligation, Certificates
of Obligation and Utility Revenue Bonds from 2005 in order to achieve savings due to
lower interest rates that are currently available. The City's Financial Advisor First
Southwest Company has presented the City with an opportunity to issue refunding
bonds for our outstanding Series 2005 General Obligation, Certificates of Obligation
and Utility Revenue Bonds. Refunding is issuing new debt to replace and pay off
existing debt. Refunding can be done for a number of reasons; however, most often
are used to accrue a savings against the current debt. The City Finance and
Budgetary Policies allow for the City to "refund" debt when there is a net present
value savings of at least 5%. This refunding opportunity will save the City
approximately 10.369462% over the remaining life of the issues.
In order to take advantage of low interest rates and save on debt issuance cost, staff
plans to recommend combining the new money sale with the refunding. Combining
the two issues would require a negotiated sale rather than our normal bidding
process.
In a negotiated sale, a consortium of investment firms is selected through an RFP
process with one firm named as the managing partner for the sale. The sale is
negotiated and pricing is verified against pricing for similar instruments within a few
days of the actual sale date to make sure that the City is getting good pricing for its
debt.
Budget & Financial Summary: In Fiscal Year 2013 the City intends to issue
$9,250,000 in General Obligation Bonds and $10,450,000 in Certificates of
Obligation Bonds. Based on current estimates, the refunding of $12,630,000 will
reduce the overall cost of the refunded bonds by at least 10.369462% over the
remaining life of the existing bonds. Total gross estimated savings will be at least
$1,532,552 with an estimated net present value savings of $1,304,606. Annual
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estimated savings will range between at least $50,211.26 and $163.368.76 per year.
The savings will help the City by providing an additional margin that Council may
choose to use for projects not currently funded by an identified source.
Attachments:
1. List of 2013 Long Term Debt Funded Projects and Proposed Refunding
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2013 Draft Debt Issue
2008 General Obligation Bonds
Streets
2,375,000 Jones Butler (Penberthy) Extension ST0905 20 Yrs
650,000 Traffic Signal Projects ST1027 20 Yrs
2,000,000 Health Science Ctr Pkwy*ST1205 20 Yrs
600,000 Barron Rd East/Lakeway ST1101 20 Yrs
400,000 Lick Creek Hike and Bike Trail ST1104 20 Yrs
500,000 University Dr Pedestrian Imp Ph II ST1206 20 Yrs
Streets Total 6,525,000$
Parks
480,000 Creekview NH Park PK0906 20 Yrs
250,000 Lincoln Center Addition PK1213 20 Yrs
350,000 Lick Creek Park Nature Center PK1102 20 Yrs
1,645,000 East District Maintenance Shop PK1101 20 Yrs
Parks Total 2,725,000$
2008 GOB Total 9,250,000$
*Balance of Barron Road Widening Phase II Authorization
4/12/2013 9:41
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2013 Draft Debt Issue 4/12/2013 9:41
Utility Certificates of Obligation
800,000 Underground System Improvements
1,020,000 New Services and System Ext
670,000 Distribution
940,000 Transmission
4,820,000 Northgate Substation (Transmission and Distribution)
Electric Projects 8,250,000$ 20 Yrs
Water Projects -$ 20 Yrs
2,000,000 Bee Creek Parallel Trunkline
Wastewater Projects 2,000,000$ 20 Yrs
Utility CO Subtotal 10,250,000$
Estimated Debt Issuance Costs 200,000$
Certificates of Obligation Total 10,450,000$
Total Debt Issue 19,700,000$
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