Loading...
HomeMy WebLinkAbout09-08-2010 Administration Committee AgendaAGENDA REGULAR MEETING OF THE ADMINISTRATION COMMITTEE ORANGE COUNTY SANITATION DISTRICT WEDNESDAY, SEPTEMBER 8, 2010, AT 5:30 P.M. ADMINISTRATIVE OFFICE 10844 Ellis Avenue Fountain Valley, California 92708 www.ocsd.com PLEDGE OF ALLEGIANCE DECLARATION OF QUORUM PUBLIC COMMENTS REPORT OF COMMITTEE CHAIR REPORT OF GENERAL MANAGER REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES a. Investment Report – PIMCO CONSENT CALENDAR ITEMS 1. Approve minutes of the July 14, 2010, meeting of the Administration Committee. ACTION ITEMS 2. Recommend to the Board of Directors to Authorize the General Manager to issue Revenue Refunding Certificate Anticipation Notes, Series 2010B, as one-year fixed-rate obligations, in an amount not to exceed $167.0 million to replace the $165.9 million Refunding Certificate Anticipation Notes, Series 2009B maturing on December 1, 2010. September 8, 2010 Page 2 3. Recommend to the Board of Directors to Authorize the General Manager to issue up to $157 million in new fixed-rate Certificates of Participation (COP) debt, in one or more series. 4. Recommend to the Board of Directors to Adopt Resolution No. OCSD 10-XX, Declaration of Official Intent to reimburse certain of the District’s Capital Reserve Funds for expenditures made in advance for Fiscal Year 2010-11 Capital Improvement Projects from proceeds of a future long-term financing. INFORMATIONAL ITEMS None. CLOSED SESSION During the course of conducting the business set forth on this agenda as a regular meeting of the Committee, the Chair may convene the Committee in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) employee actions or negotiations with employee representatives; or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Committee during a permitted closed session and are not available for public inspection. At such time as final actions are taken by the Committee on any of these subjects, the minutes will reflect all required disclosures of information. A. Convene in closed session. CONFER WITH DISTRICT LABOR NEGOTIATORS (Government Code Section 54954.5(f)) 1. Agency Designated Representatives: James D. Ruth, General Manager; Robert Ghirelli, Assistant General Manager; Lorenzo Tyner, Director of Finance and Administrative Services; Jeff Reed, Human Resources and Employee Relations Manager; and Paul Loehr, Human Resources Supervisor. 2. Employee Organization: a) Peace Officers Council of California representing employees in the Professional Group and Supervisor Group. B. Reconvene in regular session. C. Consideration of action, if any, on matters considered in closed session. September 8, 2010 Page 3 Other business and communications or supplemental agenda items, if any. Adjournment: The next regular Administration Committee meeting is scheduled for Wednesday, October 13, 2010, at 5:30 p.m. September 8, 2010 Page 4 H:\dept\asd\210\crane\AdminComm\ADMIN2010\July\03 071410 Admin Agenda.docx Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted in the main lobby of the District’s Administrative offices not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting to all, or a majority of all, of the members of District’s Board, are available for public inspection in the office of the Clerk of the Board, located at 10844 Ellis Avenue, Fountain Valley, California. Items Not Posted: In the event any matter not listed on this agenda is proposed to be submitted to the Committee for discussion and/or action, it will be done in compliance with Section 54954.2(b) as an emergency item or because there is a need to take immediate action, which need came to the attention of the Committee subsequent to the posting of agenda, or as set forth on a supplemental agenda posted in the manner as above, not less than 72 hours prior to the meeting date. Public Comments: Any member of the public may address the Administration Committee on specific agenda items or matters of general interest. As determined by the Chair, speakers may be deferred until the specific item is taken for discussion and remarks may be limited to three minutes. Matters of interest addressed by a member of the public and not listed on this agenda cannot have action taken by the Committee except as authorized by Section 54954.2(b). Consent Calendar: All matters placed on the consent calendar are considered as not requiring discussion or further explanation, and unless a particular item is requested to be removed from the consent calendar by a Director or staff member, there will be no separate discussion of these items. All items on the consent calendar will be enacted by one action approving all motions, and casting a unanimous ballot for resolutions included on the consent calendar. All items removed from the consent calendar shall be considered in the regular order of business. The Committee Chair will determine if any items are to be deleted from the consent calendar. Items Continued: Items may be continued from this meeting without further notice to a Committee meeting held within five (5) days of this meeting per Government Code Section 54954.2(b)(3). Meeting Adjournment: This meeting may be adjourned to a later time and items of business from this agenda may be considered at the later meeting by Order of Adjournment and Notice in accordance with Government Code Section 54955 (posted within 24 hours). Accommodations for the Disabled: The Board of Directors Meeting Room is wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Clerk of the Board‘s office at (714) 593-7130 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Notice to Committee Members: For any questions on the agenda or to place any items on the agenda, Committee members should contact the Committee Chair or Clerk of the Board ten days in advance of the Committee meeting. Committee Chair: Phil Luebben (714) 686-1426 pluebben@ci.cypress.ca.us Clerk of the Board: Donna Terrones (714) 593-7130 dterrones@ocsd.com General Manager: Jim Ruth (714) 593-7110 jruth@ocsd.com Assistant General Manager Bob Ghirelli (714) 593-7400 rghirelli@ocsd.com Director of Finance and Lorenzo Tyner (714) 593-7550 ltyner@ocsd.com Administrative Services Human Resources and Employee Jeff Reed (714) 593-7144 jreed@ocsd.com Relations Manager Page 1 ADMINISTRATION COMMITTEE Meeting Date 09/08/10 To Bd. of Dir. 09/22/10 AGENDA REPORT Item Number 2 Item Number Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services GENERAL MANAGER'S RECOMMENDATION Authorize the General Manager to issue Revenue Refunding Certificate Anticipation Notes, Series 2010B, as one-year fixed-rate obligations, in an amount not to exceed $167.0 million to replace the $165.9 million Refunding Certificate Anticipation Notes, Series 2009B maturing on December 1, 2010. SUMMARY In March 2006, the Sanitation District issued $200 million of variable rate Certificates of Participation (COP), Series 2006 (2006 COPs). From inception through August 2008, the average variable rate on the 2006 COPs was 2.95% or 0.22% less than the SIFMA index (weekly market index of tax-exempt variable rate obligations). As the global financial crisis took hold in the late summer of 2008, there was a significant increase in the borrowing cost of the Sanitation District, including all municipal borrowers, as the 2006 COPs averaged 4.29% (or 1.56% above the SIFMA index) for the period between September 2008 and December 2008. A good deal of the increase in variable rate cost can be attributed to the weakened financial strength of the bank, DEPFA Bank plc, providing liquidity support on the 2006 COPs. In December 2008, the Sanitation District proactively refunded the 2006 COPs with the Refunding COP Series 2008C Certificate Anticipation Notes (the 2008C CANs) to reduce its exposure to higher variable rate costs. The yield on the 2008C CANs was 0.98% for a one-year period. The issuance of the 2008C CANs allowed the Sanitation District to redeem the 2006 COPs at an all-in cost of less than 1.25% and avoid paying a bank rate of 4.75% which would have been effective starting in January 2009. As the 2008C CANs became due and payable in December 2009, the Sanitation District again conducted a refunding by issuing the $165.9 million of Revenue Refunding Certificate Anticipation Notes, Series 2009B (the 2009B CANs). The yield on the 2009B CANs is 0.37% for the one-year period ending December 1, 2010 and the all-in cost is 0.56%. The interest rate on the 2009B CANs was fixed for only one year and the entire $165.9 million plus interest becomes due and payable on December 1, 2010. The Sanitation District is responsible for the repayment of $169.2 million (includes interest) or the District could choose to refinance the 2009B CANs. Staff does not recommend the use of $169.2 million of cash to repay the 2009B CANs; therefore, there are a number of refinancing options available to the District. Page 2 PRIOR COMMITTEE/BOARD ACTIONS October 2009: Board adopted Resolution No. OCSD 09-16, Authorizing the Execution and Delivery by the District of an Installment Purchase Agreement, a Trust Agreement, and a Continuing Disclosure Agreement in connection with the execution and delivery of Orange County Sanitation District Revenue Refunding Certificate Anticipation Notes, Series 2009B, such Notes Evidencing Principal in an Aggregate Amount of Not to Exceed $181,000,000, Approving an Official Statement in Connection with the Offering and Sale of such Notes and Authorizing the Execution of Other Necessary Documents and Related Actions. November 2008: Board adopted Resolution No. OCSD 08-22, Authorizing the Execution and Delivery by the District of an Installment Purchase Agreement, a Trust Agreement, an Escrow Agreement, a Note Purchase Agreement, and a Continuing Disclosure Agreement in connection with the execution and delivery of Orange County Sanitation District Refunding Certificates of Participation, Series 2008C (Certificate Anticipation Notes), such Notes Evidencing Principal in an Aggregate Amount of Not to Exceed $198,000,000, Approving an Official Statement in Connection with the Offering and Sale of such Notes and Authorizing the Execution of Other Necessary Documents and Related Actions. ADDITIONAL INFORMATION Options Available to the Sanitation District 1. Refund the Maturing 2009B CANs with Fixed Rate Debt The issuance of long-term fixed rate refunding debt will eliminate market access risks (ability to issue debt to refinance maturing debt) and interest rate risk (additional costs if rates reset higher or are higher upon a future refinancing). After the issuance of fixed rate debt, the Sanitation District will not be exposed to changing market conditions. The issuance of long-term fixed rate debt in the current market would result in an average borrowing yield of approximately 4.08%. Fixed rate debt would also remove the interest rate hedge originally desired by the Sanitation District (in 2006) which was intended to insulate the District from changes in short-term interest rates as the variable rates on the 2006 COPs would be expected to move in tandem with the District’s fluctuating investment portfolio earnings. The following is a current market cost summary (subject to changing market conditions) of Option 1 (Fixed Rate Debt) over the next year: 4.080% Assumed Average Fixed Rate 0.019 Costs of Issuance ($325,000 amortized over life of COPs) 0.050 Underwriter Costs ($863,000 amortized over life of COPs) 4.149% Fixed Rate Cost Page 3 2. Refund the Maturing 2009B CANs with Variable Rate Debt Current variable rates on California municipal debt are extremely low and attractive at approximately 0.20%. However, the availability of bank support continues to be limited and expensive in the current marketplace. In addition, the terms and conditions currently demanded by banks are more onerous than during the period prior to the global financial crisis. The following is a current market cost comparison (subject to changing market conditions) versus Option 1 (Fixed Rate Debt) over the next year: Variable% Average Variable Rate 0.60 Bank Liquidity Fee 0.100 Remarketing Fee 0.022 Costs of Issuance ($375,000 amortized over life of COPs) 0.012 Underwriter Costs ($200,000 amortized over life of COPs) 0.734% + Variable% or (3.415% less unknown variable rates) less than Option 1 3. Refund the Maturing 2009B CANs with a New CANs issue Since the issuance of the 2009B CANs, short-term interest rates have been relatively steady as the current market yield for CANs is approximately 0.32%. The issuance of refunding CANs will continue to allow the Sanitation District to accrue savings at a low fixed rate while further insulating the District from higher interest rates. The CANs structure will avoid the payment of high fees to liquidity banks and eliminate the risk of interest rates increasing from historic low levels over the next year. Although current variable rates are low (see Option 2. above), there is little room for rates to trend lower. The following is a current market cost summary (subject to changing market conditions) of Option 3 (CANs) over the next year: 0.320% Assumed One-Year Rate 0.191 Costs of Issuance ($300,000 amortized over one year) 0.025 Underwriter Costs ($39,000 amortized over one year) 0.531% or 3.618% less than Option 1 (equal to $5.7 million of savings) A comparison of the CANs refinancing structure to Option 2 above (Variable Rate Debt) shows that unknown variable rates must be less than zero for variable rate debt to generate a better economic result. The major risk with a CANs structure occurs if the Sanitation District does not have market access to remarket the CANs at maturity. However, the Sanitation District has a substantial amount of reserves that could (if the Board chooses) be used to redeem CANs if market access is not available. Staff intends to build in safeguards to avoid the use of Sanitation District reserves unless absolutely necessary: for example, beginning the process of refinancing well in advance of the maturity date of the CANs. To further reduce interest rate risk (additional costs if rates reset higher or are higher upon a future refinancing) the Sanitation District could establish an Accelerated Rate Page 4 Management (ARM) program with the one-year CAN refinancing debt issuance. The ARM program uses accrued savings (i.e., 0.37% yield on 2009B CANs) compared to a fixed rate assumption (i.e., 2006 fixed rate of 4.54%) to reducing the outstanding amount of debt on a periodic basis. As less debt is outstanding, the Sanitation District significantly reduces its interest rate risk (if higher interest rates occur, the net effect is less because the higher interest cost is calculated on less principal). The implementation of the ARM program since the issuance of the 2006 COPs has decreased the interest rate risk to the Sanitation District as the break- even rate (the average future interest rate for the remaining debt from the 2006 COPs issuance) is now over 6.6%. If the Sanitation District refinances the 2009B CANs with one-year CANs and current market conditions do not change, the break-even rate will increase to over 7.3%. In addition, the original variable rate structure of the 2006 COPs and the two past CANs refinancings have saved the District $15.7 million compared to the alternative of the District issuing fixed rate debt in 2006. Staff is recommending Option 3, the refunding of the 2009B CANs with a new one-year CAN that will again enable the Sanitation District to lock-in a low rate for approximately one year without (a) encumbering cash reserves; (b) exposing the District to relatively high bank liquidity costs associated with variable rate debt; and, (c) allowing for flexibility to continue to accrue savings while insulating the District from higher interest rates. If the Sanitation District pursues Option 3, the refunding CANs can be sold on a competitive basis in order to obtain the lowest financing cost possible. Staff and consultants will be available to make a brief presentation and provide an overview of the financing schedule at the Administration Committee meeting. Following is a chart listing the remaining steps to be completed for the issuance of the Revenue Refunding Certificate Anticipation Notes, Series 2010B debt issuance: October  Board approval of legal and disclosure documents  Financing Corporation approval of legal and disclosure documents  Receive Ratings from Bond Rating Agencies November  Receive competitive bids December  Closing CEQA N/A BUDGET / DELEGATION OF AUTHORITY COMPLIANCE N/A Page 1 ADMINISTRATION COMMITTEE Meeting Date 09/08/10 To Bd. of Dir. 09/22/10 AGENDA REPORT Item Number 3 Item Number Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services GENERAL MANAGER'S RECOMMENDATION Authorize the General Manager to issue up to $157 million in new fixed-rate Certificates of Participation (COP) debt, in one or more series. SUMMARY Approval of the recommended action above will direct staff to begin the $157 million fixed-rate competitive debt issuance process utilizing the assistance of the financial advisory firm of Public Resources Advisory Group, and the bond counsel firm of Fulbright & Jaworski. Depending on market conditions and the associated cost savings, all, or a portion, of the debt issuance may be offered as Build America Bonds (BABs). In accordance with the Sanitation District’s Board-adopted Debt Policy, the District will restrict long-term borrowing to capital improvements that cannot be financed from current revenue. This policy will assist in the leveling out of user fee rates over time and avoid any spiked increases in the short-term. PRIOR COMMITTEE/BOARD ACTIONS March 10, 2010: Board approved the issuance of $80 million of new Certificates of Participation (COP) debt within the FY 2009-10 Adopted Budget, in support of the Sanitation District’s Strategic Plan capital improvement program. ADDITIONAL INFORMATION Existing COP Financing Program The Sanitation District currently has nine series of non-subordinate COPs outstanding comprising a total par amount of $1.21 billion. The following table describes each COP in detail. Page 2 Outstanding Par Amount* Interest Rate Mode Series 2010A(1) $ 80,000,000 Fixed Rate Series 2009B Refunding (2) 165,865,000 Fixed Rate (one-year) Series 2009A(1) 197,770,000 Fixed Rate Series 2008B Refunding (3) 26,975,000 Fixed Rate Series 2008A Refunding (3) 30,535,000 Fixed Rate Series 2007B(1) 290,130,000 Fixed Rate Series 2007A(4) Refunding 93,265,000 Fixed Rate Series 2003(1) 191,500,000 Fixed Rate Series 2000(5) Refunding 194,000,000 Daily Variable Rate Total $1,207,250,000 *As of September 1, 2010. (1) New money debt issue. (2) Series 2009B are fixed one-year certificate of anticipation notes (CANS) that refunded the Series 2008C CANS that were issued to refund the remainder of Series 2006 Daily Variable Rate that were supported by a weak liquidity facility bank. (3) Series 2008B and Series 2008A refunded the Series 1993 and Series 1992 Synthetic Variable-to-Fixed Rate Debt issues that were supported by a failing insurance provider. Series 1993 and 1992 refunded the Series 1986 and a portion of the Series “B” COPs. (4) Series 2007A refunded a portion of COP Series 2003 for debt service savings. (5) Series 2000 COPs refunded the Series A, B, and C issued between 1990 and 1992. The Series 2000 refunded the $179.7 million outstanding principal balance of the 1990-92 Series A, B, and C COP’s and reimbursed the Sanitation District for improvements made to the wastewater treatment system. The 2007A Refunding COPs were issued to refund $95.1 million of the Series 2003 COPs. The Series 2008A refunded $77.2 million of the Refunding Series 1992 and Series 2008B refunded $27.8 million of the Refunding Series 1993. Both Refunding Series 1992 and 1993 synthetic variable-to-fixed rate issues had begun to demand high interest rate payments due to failing insurance providers. Series 2009B fixed one-year certificate of anticipation notes (CANS) were issued to refund the Series 2008C CANS. The Series 2008C CANS had been issued to refund the remaining $176 million outstanding on Series 2006 Variable Rate Debt that also began to result in high interest rate payments, due to the weak liquidity facility bank that was supporting the issue. Series 2003, Series 2007B, Series 2009A, and Series 2010A were all new money debt issuances. Page 3 The following table displays the combined gross debt service cash flows for the District’s nine COPs through final maturity in 2040. 0 20 40 60 80 100 120 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 20 1 6 20 1 7 20 1 8 20 1 9 20 2 0 20 2 1 20 2 2 20 2 3 20 2 4 20 2 5 20 2 6 20 2 7 20 2 8 20 2 9 20 3 0 20 3 1 20 3 2 20 3 3 20 3 4 20 3 5 20 3 6 20 3 7 20 3 8 20 3 9 20 4 0 Mi l l i o n s $ Fiscal Year End Debt Service Structure* Variable Rate Fixed Rate *Series 2009B one-year Certificate Anticipation Notes is assumed to be amortized from 2022 to 2036. All variable rate obligations are assumed to have a per annum interest rate of 3%. Proposed Debt Issuance As shown above and in accordance with the Sanitation District’s debt policy, the District currently has $194 million in variable rate debt outstanding and $1.076 billion in fixed rate debt outstanding (of which $165.865 million are one-year CANs). However, due to the relatively high fees requested by bank liquidity providers, staff believes that this new money debt issue should be again issued as fixed rate COPs. Staff is also proposing to issue this $157 million fixed-rate debt by competitive sale, in one or more series, as opposed to a negotiated sale due to PRAG’s opinion that a competitive fixed-rate sale will be less costly to the Sanitation District. The American Recovery and Reinvestment Act of 2009 created a new financing product, BABs, for the municipal issuer. BABs are issued as higher interest cost taxable bonds; however, the U.S. Treasury provides a 35 percent subsidy on interest payments. The net cost, after accounting for the 35 percent subsidy payment, frequently results in lower net costs to the issuer, specifically in the maturity years beyond ten years. Based on current market conditions, a hybrid tax-exempt and BABs sale (tax-exempt for the short maturities and BABs for the long maturities), would save the Sanitation District 0.88% in average interest cost, equal to approximately $17.2 million on a present value base (or approximately 13.6% of the BABs par amount) which is well in excess of the savings the District would ever expect to achieve from a future refunding. If the Sanitation District would refund and restructure the BABs, it would be very costly; however, staff believes the future need to restructure the BABs is extremely remote. Effectively, by issuing BABs, the Sanitation District should consider to debt to be non-callable as it would otherwise be very expensive to optionally redeem. Although a relatively new financial product, over $124 billion of BABs have been sold by municipal issuers since the first issuance in March 2009. In addition, 25% Page 4 of the municipal bond volume in 2010 has been issued as BABs, including the Sanitation District’s $80 million Series 2010A. A number of California issuers have already sold over a billion dollars of BABs, including the State of California, Los Angeles Unified School District, Bay Area Toll Authority, and University of California. California utility issuers that have issued BABs include The Metropolitan Water District of Southern California, Los Angeles Department of Water and Power, Sacramento County Sanitation Districts, San Diego County Water Authority, East Bay Municipal Utility District, and the San Francisco Public Utilities Commission. CEQA N/A BUDGET / DELEGATION OF AUTHORITY COMPLIANCE The FY 2010-11 Approved Budget included new money debt issuance of $157 million. JDR:LT:MW Page 1 ADMINISTRATION COMMITTEE Meeting Date 09/08/10 To Bd. of Dir. 09/22/10 AGENDA REPORT Item Number 4 Item Number Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 10-XX, Declaration of Official Intent to reimburse certain of the District’s Capital Reserve Funds for Expenditures Made in Advance for Fiscal Year 2010-11 Capital Improvement Projects From Proceeds of a Future Long-Term Financing. SUMMARY Adoption of the “Reimbursement Resolution” will allow the Sanitation District to use proceeds from the anticipated future long-term borrowing of up to $157 million to reimburse capital reserve funds which were used to fund District capital projects. A similar Resolution has been adopted in advance of previous “new money” debt issuances. PRIOR COMMITTEE/BOARD ACTIONS March 2010: Board adopted Resolution No. OCSD 10-04, Declaration of Official Intent to Reimburse Certain of the District’s existing capital reserve funds for expenditures made in advance for Fiscal Year 2009-10, and in anticipation of, capital improvement expenditures, from proceeds of a future long-term borrowing. ADDITIONAL INFORMATION Under provisions of U.S. Treasury Regulation 1.150-2, local public agencies may use proceeds from long-term borrowings to reimburse those capital reserve funds which were advanced to fund preliminary expenditures, such as design, engineering and similar costs, for capital projects providing the public agency has declared its intent to do so prior to debt issuance. As part of preparations for a new capital financing program to support the Facilities Master Plan adopted in December 2009, it is necessary to update the Sanitation District’s intent to reimburse reserve funds. Adoption of the “Reimbursement Resolution” will ensure that the Sanitation District can include monies in upcoming borrowings to reimburse reserve funds for expenditures made in advance of available COP proceeds. Page 2 CEQA N/A BUDGET / DELEGATION OF AUTHORITY COMPLIANCE N/A ATTACHMENTS 1. Resolution No. OCSD 10-XX 2. Exhibit A JDR:LT:MW RESOLUTION NO. OCSD 10-XX DECLARATION OF OFFICIAL INTENT TO REIMBURSE CERTAIN OF THE DISTRICT'S CAPITAL RESERVE FUNDS FOR EXPENDITURES MADE IN ADVANCE FOR FISCAL YEAR 2009-10 CAPITAL IMPROVEMENT PROJECTS FROM PROCEEDS OF A FUTURE LONG-TERM FINANCING A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT AUTHORIZING FUTURE CAPITAL EXPENDITURES TO BE REIMBURSED FROM FUTURE LONG-TERM FINANCING WHEREAS, the Board of Directors, by adoption of Resolution No. 94-81 on July 13, 1994; Resolution No. 97-28 on July 30, 1997; Resolution No. OCSD 98-32 on July 1, 1998; Resolution No. OCSD 99-08 on June 23, 1999; Resolution No. OCSD 00-15 on July 19, 2000; Resolution No. OCSD 01-17 on August 22, 2001; Resolution No. OCSD 02-20 on October 23, 2002; Resolution No. OCSD 05-28 on December 21, 2005; Resolution No. OCSD 07-12 on June 27, 2007; Resolution No. OCSD 08-18 on October 22, 2008, and Resolution No. OCSD 10-04 on March 24, 2010 previously declared its official intent to reimburse its then existing capital reserve funds and accounts for certain expenditures made in advance of and in anticipation of issuing indebtedness for capital improvements to be acquired, constructed, or paid for, by or on behalf of the District during the Fiscal Year; and, WHEREAS, the District (“Issuer”) intends to acquire and/or construct, or otherwise improve, certain capital improvements during Fiscal Year 2010-11, and later, all as more particularly described on Exhibit “A,” attached hereto and incorporated herein by reference (the “Project”); and, WHEREAS, Issuer expects to pay certain expenditures (the “Reimbursement Expenditures”) in connection with the Project prior to the issuance of indebtedness for the purpose of financing costs associated with the Project, on a long-term basis; and, WHEREAS, the Issuer reasonably expects that the debt obligations, in an amount not to exceed $157 million, will be issued, and that certain of the proceeds of such debt obligations will be used to reimburse the Issuer for Reimbursement Expenditures. NOW, THEREFORE, the Board of Directors of Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1: That the Issuer finds and determines that the foregoing Recitals are true and correct. Section 2: That this Declaration is made solely for purposes of establishing compliance with the requirements of Section 1.150-2 of the U.S. Treasury Regulations. This Resolution Declaration does not bind the Issuer to make any expenditure, incur any indebtedness, or proceed with the Project. Section 3: That the Issuer hereby declares its official intent to use proceeds of indebtedness to reimburse itself for the Reimbursement Expenditures. PASSED AND ADOPTED at a regular meeting of the Board of Directors held September 22, 2010. _____________________________ Chair ATTEST: ____________________________ Clerk of the Board Exhibit A Orange County Sanitaiton District Capital Improvement Program Page 1 of 6 Summary of Capital Requirements – Collection System Improvement Projects Project Total Est. Cost 2010-11 2011-12Project Phase Project to Date Cashflow Cashflow Future Page Number 7/1/10 Budget 6/30/10 Budget Budget Budget Number Collections Raitt and Bristol Street Sewer Extension 01-101 Planning 9,906,000 253,000 9,653,000 14 Santa Ana Trunk Sewer Rehab. 01-17 Planning 21,156,000 1,031,000 160,000 840,000 19,125,000 15 Santa Ana River Interceptor Realignment and Prot. 02-41 Design 11,404,000 8,686,000 744,000 956,000 1,018,000 16 Santa Ana River Interceptor (SARI) Inspection and Mitigation 02-41-7 Planning 900,000 500,000 200,000 200,000 17 Taft Branch Improvements 02-49 Planning 3,143,000 13,000 3,130,000 N/A Newhope-Placentia Trunk Grade Seperation Replacement 02-65 Planning 2,392,000 82,000 138,000 2,172,000 18 Fullerton-Brea Interceptor Sewer Relief 02-71 Planning 2,287,000 30,000 2,257,000 19 Newhope-Placentia Trunk Replacement 02-72 Planning 66,696,000 66,696,000 N/A Yorba Linda Pumping Station Abandonment 02-73 Planning 9,566,000 9,566,000 N/A Rehabilitation of the Westside Pump Station 03-52 Design 11,668,000 10,190,000 1,226,000 252,000 20 Westside Relief Interceptor Relief 03-55 Planning 26,482,000 26,482,000 N/A Rehabilitation of Magnolia Trunk Sewer 03-58 Planning 26,721,000 2,526,000 17,723,000 3,448,000 3,024,000 21 Miller-Holder Trunk Sewer Relief 03-59 Planning 17,324,000 17,324,000 N/A Beach Trunk/Knott Interceptor Sewer Relief 03-60 Planning 25,055,000 25,055,000 N/A Miller-Holder and Knott Trunks Odor Control Project 03-61 Planning 1,795,000 1,795,000 N/A Seal Beach Pumping Station Upgrade and Rehabilitation 03-62 Planning 14,023,000 14,023,000 N/A Seal Beach Pumping Station Force Main Rehabilitation 03-63 Planning 11,032,000 152,000 10,880,000 N/A Rehabilitation of 3-6, 3-8, and 3-21-1 Sewers 03-64 Planning 71,312,000 71,312,000 N/A Balboa Trunk Sewer Rehabilitation 05-47 Planning 8,514,000 1,056,000 416,000 2,190,000 4,852,000 22 Replacement of the Bitter Point Pump Station 05-49 Design 32,084,000 14,287,000 11,840,000 3,882,000 2,075,000 23 Replacement of the Rocky Point Pump Station 05-50 Design 20,360,000 11,758,000 7,183,000 565,000 854,000 24 Bitter Point Force Main Rehabilitation 05-58 Design 25,883,000 23,366,000 1,539,000 978,000 25 Newport Force Main Condition Assessment 05-60 Planning 22,591,000 1,619,000 1,072,000 633,000 19,267,000 26 Bayside Drive Improvement 05-61 Planning 3,415,000 3,113,000 302,000 27 Dover Drive Trunk Sewer Relief 05-63 Planning 13,346,000 1,788,000 1,099,000 9,120,000 1,339,000 28 Lido Pumping Station Upgrade and Rehabilitation 05-65 Planning 1,515,000 13,000 114,000 1,388,000 29 Crystal Cove Pumping Station Upgrade and Rehabilitation 05-66 Planning 7,379,000 7,379,000 N/A Bay Bridge Pumping Station Upgrade and Rehabilitation 05-67 Planning 46,852,000 46,852,000 N/A District 6 Trunk Sewer Relief 06-17 Planning 5,126,000 6,000 48,000 5,072,000 30 Southwest Costa Mesa Trunk 06-19 Planning 13,309,000 94,000 491,000 12,724,000 31 Gisler-Redhill System Improvements, Reach B 07-37 Design 9,622,000 1,675,000 406,000 6,869,000 672,000 32 Rehabilitation of College Ave. Pump Station 07-47 Planning 11,445,000 11,162,000 283,000 33 Browning Subtrunk Sewer Relief 07-60 Planning 11,172,000 11,172,000 N/A County Island Annexation and CEQA Documentation 07-61 Planning 300,000 259,000 41,000 34 Von Karman Trunk Sewer Relief 07-62 Planning 433,000 433,000 N/A MacArthur Pumping Station Upgrade and Rehabilitation 07-63 Planning 7,028,000 7,028,000 N/A Edinger/Bolsa Chica Trunk Improvements 11-25 Planning 6,030,000 6,030,000 N/A Coast Trunk Sewer Rehabilitation 11-26 Design 9,121,000 9,110,000 11,000 35 Wintersburg Channel Siphon Protection Project 11-32 Planning 75,000 75,000 36 Edinger Pumping Station Upgrade and Rehabilitation 11-33 Planning 11,474,000 11,474,000 N/A North County Collections Yard 15-04 Planning 12,270,000 6,950,000 4,709,000 16,000 595,000 37 Facilities Engineering Projects - Collections FE-Collect Planning 8,520,000 5,145,000 688,000 325,000 2,362,000 38 Replacement of the Ellis Ave. Pump Stn I-10 Design 79,337,000 78,987,000 350,000 39 Siphon and Manhole Upgrade Feasibility Study SP-138 Planning 300,000 150,000 150,000 40 Total Collections Projects 700,363,000 193,062,000 50,624,000 31,397,000 425,280,000 Exhibit A Orange County Sanitaiton District Capital Improvement Program Page 2 of 6 Summary of Capital Requirements – Treatment System Improvement Projects Project Total Est. Cost 20010-11 2011-12 Project Phase Project to Date Cashflow Cashflow Future Page Number 7/1/10 Budget 6/30/10 Budget Budget Budget Number Headworks Headworks Rehab. and Expansion at Plant No. 1 P1-105 Planning 43,404,000 485,000 42,919,000 N/A Headworks Expansion P1-120 Planning 222,804,000 222,804,000 N/A Headworks Rehabilitation/Refurbishment P1-71 Design 8,374,000 7,364,000 622,000 388,000 41 Headworks Improvements at Plant No. 2 P2-66 Const./Impl. 257,733,000 232,549,000 15,325,000 8,609,000 1,250,000 42 Headworks Total 532,315,000 239,913,000 15,947,000 9,482,000 266,973,000 Primary Treatment Primary Clarifiers 6-31 Evaluation and Optimization Study P1-116 Planning 150,000 92,000 58,000 43 Primary Effluent Pipeline Joint Repairs P1-118 Planning 3,246,000 3,246,000 N/A Primary Treatment Rehab/Refurb P2-80 Planning 38,923,000 38,399,000 330,000 194,000 44 Primary Treatment Area Rehabilitation Study SP-137 Planning 300,000 150,000 150,000 45 54-inch Primary Effluent Butterfly Valve Use Study SP-144 Planning 25,000 25,000 46 Primary Treatment Total 42,644,000 38,491,000 563,000 344,000 3,246,000 Secondary Treatment New Secondary Treatment System at Plant No. 1 P1-102 Design 260,300,000 222,158,000 32,461,000 5,681,000 47 Activated Sludge Plant No.1 Upgrades P1-117 Planning 20,673,000 20,673,000 N/A Activated Sludge Plant Rehabilitation P1-82 Const./Impl. 46,761,000 46,438,000 323,000 48 Trickling Filters at Plant No. 2 P2-90 Design 223,238,000 197,943,000 19,551,000 233,000 5,511,000 49 Oxygen Plant Rehabilitation at Plant No. 2 SP-129 Planning 2,500,000 92,000 458,000 1,562,000 388,000 50 Secondary Treatment Total 553,472,000 466,631,000 52,793,000 7,476,000 26,572,000 Solids Handling & Digestion Sludge Digester Rehabilitation at Plant 1 P1-100 Design 55,515,000 7,985,000 15,477,000 18,314,000 13,739,000 51 Sludge Dewatering and Odor control at Plant 1 P1-101 Design 143,549,000 13,880,000 5,529,000 6,397,000 117,743,000 52 Digester Ferric Chloride System Rehabilitation P2-105 Planning 2,627,000 35,000 207,000 462,000 1,923,000 53 Demolition of Digesters A and B P2-110 Planning 4,756,000 4,756,000 N/A Solids Storage Silo Rehabilitation P2-114 Planning 37,604,000 37,604,000 N/A Solids Thickening and Processing Upgrades P2-89 Planning 61,135,000 5,082,000 3,425,000 1,919,000 50,709,000 54 Plant No. 2 Primary Sludge Feed System Project P2-91 Const./Impl. 26,524,000 25,943,000 244,000 337,000 55 Digester Rehabilitation at Plant No. 2 P2-91-1 Planning 45,637,000 116,000 1,127,000 444,000 43,950,000 56 Sludge Dewatering and Odor Control at Plant 2 P2-92 Planning 63,183,000 75,000 259,000 570,000 62,279,000 57 Replacement of Drying Beds and Truck Wash at Plant P2-97 Planning 4,443,000 71,000 277,000 4,095,000 58 Food Waste Collection and Treatment Study SP-171 Planning 100,000 100,000 N/A Digesters 5 and 6 Conversion and Use Study SP-172 Planning 100,000 100,000 N/A Solids Handling & Digestion Total 445,173,000 53,187,000 26,268,000 28,720,000 336,998,000 Exhibit A Orange County Sanitaiton District Capital Improvement Program Page 3 of 6 Summary of Capital Requirements –Treatment System Improvement Projects Project Total Est. Cost 20010-11 2011-12 Project Phase Project to Date Cashflow Cashflow Future Page Number 7/1/10 Budget 6/30/10 Budget Budget Budget Number Ocean Outfall Systems Final Effluent Sampler and Building Area Upgrades J-110 Planning 2,661,000 52,000 78,000 331,000 2,200,000 59 Outfall Land Section and OOBS Piping Rehabilitation J-112 Const./Impl. 7,540,000 521,000 1,499,000 1,043,000 4,477,000 60 Outfall Piping Rehabilitation Program Study J-113 Planning 370,000 36,000 80,000 80,000 174,000 61 Ocean Outfall Booster Station Rehabilitation (Electrical) J-114 Planning 13,059,000 60,000 12,999,000 N/A 66-inch Interplant Effluent Pipeline Rehabilitation J-116 Planning 62,052,000 62,052,000 N/A Ocean Outfall Booster Station Rehabilitation (Mechanical) J-117 Planning 4,559,000 4,559,000 62 Outfall Beach Box Rehabilitation Evaluation J-119 Planning 330,000 50,000 280,000 63 Ocean Outfall Easement Renewal SP-143 Planning 25,000 25,000 64 Outfall Pumping Cooling Water Bypass Study SP-154 Planning 25,000 25,000 N/A Alternative Effluent Disinfection Study SP-156 Planning 100,000 100,000 N/A Santa Ana River Flap Gates Access Study SP-159 Planning 50,000 50,000 N/A Interplant Effluent Pipeline Alternate Use Study SP-164 Planning 10,000 10,000 N/A Ocean Outfall Systems Total 90,781,000 719,000 1,962,000 1,479,000 86,621,000 Utility Systems Interplant Gas Line Rehabilitation J-106 Design 4,504,000 863,000 3,227,000 147,000 267,000 65 Cengen Cooling Water System Replacement J-109 Planning 10,023,000 1,061,000 1,093,000 2,739,000 5,130,000 66 Cengen Emissions Control Project J-111 Planning 30,279,000 2,381,000 27,898,000 67 UPS System Upgrades J-121 Planning 13,012,000 13,012,000 N/A Air Quality Improvements J-79 Const./Impl. 11,668,000 10,385,000 1,114,000 169,000 68 Central Generation Automation J-79-1 Design 21,049,000 16,353,000 3,818,000 79,000 799,000 69 Electrical Power Distribution System Improvements J-98 Planning 9,773,000 9,773,000 N/A Power Building 3A Backup Power Reliability Project P1-111 Planning 502,000 80,000 35,000 64,000 323,000 70 Plant Water System Rehabilitation at Plant No.1 P1-112 Planning 3,344,000 32,000 210,000 138,000 2,964,000 71 Flare Addition P1-119 Planning 2,083,000 2,083,000 N/A Gas Compressor Upgrades P1-121 Planning 27,181,000 27,181,000 N/A Plant 1 66kV Substation P1-97 Design 15,153,000 15,151,000 2,000 72 Plant Water System Rehabilitation at Plant No.2 P2-101 Planning 3,659,000 34,000 232,000 294,000 3,099,000 73 Additional High Pressure Flare P2-103 Planning 1,993,000 1,993,000 74 15 kV Upgrades at Plant No. 2 P2-108 Planning 3,238,000 11,000 394,000 2,833,000 75 Gas Compressor Upgrades P2-109 Planning 22,362,000 22,362,000 N/A SCE Feed Reliability Improvements P2-111 Planning 22,490,000 22,490,000 N/A Energy Load Management and Shedding System P2-112 Planning 16,517,000 16,517,000 N/A Gas Holder Demolition P2-113 Planning 1,026,000 1,026,000 N/A Secondary Area Cable Tray Upgrades P2-116 Planning 2,154,000 2,154,000 N/A Headworks Area Cable Tray Upgrades P2-117 Planning 3,015,000 3,015,000 N/A Fuel Cell Feasibility Study SP-132 Planning 100,000 35,000 65,000 76 Fuel Cell Hydrogen Gas Generation Research SP-134 Planning 600,000 360,000 240,000 77 Exhibit A Orange County Sanitaiton District Capital Improvement Program Page 4 of 6 Summary of Capital Requirements –Treatment System Improvement Projects Project Total Est. Cost 2010-11 2011-12Project Phase Project to Date Cashflow Cashflow Future Page Number 7/1/10 Budget 6/30/10 Budget Budget Budget Number Utility Systems Projects (Continued.) Digester Gas Facilities Assessment SP-141 Planning 100,000 50,000 50,000 78 Utility Water Systems Study SP-146 Planning 475,000 200,000 275,000 N/A Plant Air System Master Plan SP-148 Planning 220,000 100,000 120,000 N/A Electrical System Base Map SP-149 Planning 220,000 100,000 120,000 N/A Uninterruptible Power System (UPS) Study SP-150 Planning 100,000 50,000 50,000 N/A Sidestream Pumping System and Water Characterization Study SP-155 Planning 170,000 170,000 N/A Standby Power Generation Study SP-158 Planning 100,000 100,000 N/A Communication Radio System Replacement SP-165 Planning 900,000 900,000 79 Power Outage Recovery Plan SP-170 Planning 100,000 100,000 N/A Potable Water Quality Study SP-175 Planning 25,000 25,000 N/A Utility Systems Total 228,135,000 44,394,359 10,997,000 6,905,000 165,879,000 Odor Control Related Projects Coyote Hills Golf Course Odor Control Station 02-74 Planning 8,365,000 8,365,000 N/A Rehabilitation of Odor Control Facilities J-71-8 Design 44,124,000 7,018,000 913,000 6,783,000 29,410,000 80 Trickling Filter Odor Control at Plant No. 1 P1-113 Planning 5,182,000 337,000 628,000 4,217,000 81 Primary Scrubber Rehabilitation at Plant No.1 P1-114 Planning 41,732,000 41,732,000 N/A Solids Storage Building Odor Control Project P2-102 Planning 10,720,000 152,000 816,000 9,752,000 82 Chemical Scrubber Conversions and Piping System Improvements P2-106 Const./Impl. 3,261,000 100,000 625,000 2,032,000 504,000 83 Primary Treatment Odor Control Upgrades P2-98 Planning 35,691,000 2,844,000 32,847,000 84 Wastehauler Odor Control SP-140 Planning 100,000 50,000 50,000 85 Odor Control Master Plan SP-166 Planning 2,400,000 2,400,000 N/A Odor Control Related Projects Total 151,575,000 7,118,000 2,077,000 13,153,000 129,227,000 Process Related Special Projects Plant O&M Manual & SOP Project - Phase I SP-53 Planning 3,750,000 2,455,000 1,295,000 86 Corrosion Management SP-68-1 Design 4,667,000 3,183,000 1,366,000 118,000 87 Special Projects: Biotrickling Filter (BTF) SP-90-7 Const./Impl. 29,000 5,000 12,000 12,000 88 Process Related Special Projects Total 8,446,000 5,643,000 2,673,000 130,000 - Plant Automation & Computerization Power Monitoring and Control Systems J-33-3 Planning 12,013,000 2,852,000 943,000 5,382,000 2,836,000 89 Strategic Information Architecture (SIA) SP-03 Const./Impl. 1,995,000 730,000 250,000 250,000 765,000 90 Internet/Intranet Development SP-09 Const./Impl. 650,000 345,000 60,000 60,000 185,000 91 CMMS System Replacement SP-100 Const./Impl. 3,789,000 1,391,000 1,242,000 1,156,000 92 PDS2D Software Replacement SP-103 Planning 250,000 50,000 50,000 150,000 93 Geographic Information System SP-15 Const./Impl. 4,047,000 827,000 690,000 690,000 1,840,000 94 Process SCADA Modbus Ethernet Redundancy SP-160 Planning 1,055,000 1,055,000 N/A VAX Server Migration to Modbus Ethernet SP-161 Planning 1,146,000 1,146,000 N/A Network Equipment Upgrade SP-89 Const./Impl. 1,157,000 255,000 622,000 140,000 140,000 95 Plant Automation & Computerization Total 26,102,000 6,400,000 3,857,000 7,728,000 8,117,000 Exhibit A Orange County Sanitaiton District Capital Improvement Program Page 5 of 6 Summary of Capital Requirements –Treatment System Improvement Projects Project Total Est. Cost 2010-11 2011-12 Project Phase Project to Date Cashflow Cashflow Future Page Number 7/1/10 Budget 6/30/10 Budget Budget Budget Number Miscellaneous & Support Projects Facilities Engineering Projects - Joint FE-J Planning 23,910,000 3,844,000 1,310,000 1,290,000 17,466,000 96 Facilities Engineering Projects - Plant 1 FE-P1 Planning 20,910,000 10,429,000 1,135,000 1,127,000 8,219,000 97 Facilities Engineering Projects - Plant 2 FE-P2 Planning 20,910,000 7,032,000 788,000 757,000 12,333,000 98 Temporary Upgrades To Plant Security Barriers J-108 Planning 2,385,000 993,000 1,092,000 108,000 192,000 99 Emergency Operation Center J-115 Planning 100,000 100,000 100 Contracts and Purchasing Building Extension J-118 Planning 3,589,000 3,589,000 101 Operations Center Entrance/Building Repairs J-122 Planning 2,325,000 450,000 1,150,000 725,000 102 Title 24 Access Compliance Improvements at Plant No. 1 P1-115 Planning 10,000,000 42,000 268,000 1,085,000 8,605,000 103 Plant No. 2 Landscaping Project P2-96 Planning 545,000 90,000 255,000 200,000 104 Integrated Security Access Control System SP-128 Planning 450,000 90,000 90,000 270,000 105 2009 NPDES Permit Renewal SP-133 Planning 150,000 100,000 50,000 106 Software and Computer Equipment Replacement Project SP-135 Const./Impl. 2,700,000 50,000 270,000 270,000 2,110,000 107 Land Records Information System SP-136 Planning 410,000 20,000 195,000 195,000 108 Roof Condition Assessment and Rehabilitation Study SP-142 Planning 75,000 39,000 36,000 109 Facility Assets Assessment SP-145 Planning 5,000,000 500,000 1,500,000 3,000,000 110 Administrative Facilities Master Plan SP-147 Planning 250,000 50,000 100,000 100,000 111 Laboratory Water Piping Replacement SP-153 Planning 1,005,000 13,000 112,000 880,000 112 Stormwater Master Plan SP-167 Planning 300,000 300,000 N/A Small Cap. Equip. Replacement Project SP-34 Const./Impl. 11,700,000 1,500,000 1,700,000 1,700,000 6,800,000 113 Asset Management Program SP-68-2 Design 4,800,000 2,683,000 370,000 363,000 1,384,000 114 Warehouse Reinvention Project SP-77 Const./Impl. 600,000 532,000 68,000 115 Miscellaneous & Support Projects Total 112,114,000 27,315,000 8,643,000 10,083,000 66,073,000 Water Management Projects Initial Expansion of the Groundwater Replenishment System SP-139 Design 300,000 100,000 100,000 100,000 116 Effluent Reuse Study SP-173 Planning 60,000 60,000 N/A Water Management Projects Total 360,000 - 100,000 100,000 160,000 Strategic & Master Planning Orange County Biosolids Production Siting Study SP-105 Planning 400,000 136,000 264,000 117 Uniform Level of Service Standards SP-151 Planning 80,000 40,000 40,000 N/A Climate Change Impact Study SP-152 Planning 100,000 50,000 50,000 N/A Plant No. 2 Soil Liquefaction Study SP-177 Planning 250,000 250,000 N/A Strategic & Master Planning Total 830,000 136,000 264,000 90,000 340,000 Exhibit A Orange County Sanitaiton District Capital Improvement Program Page 6 of 6 Summary of Capital Requirements –Treatment System Improvement Projects Project Total Est. Cost 2010-11 2011-12 Project Phase Project to Date Cashflow Cashflow Future PageNumber 7/1/10 Budget 6/30/10 Budget Budget Budget Number Research & Development Process SCADA Replacement J-120 Planning 20,283,000 20,283,000 N/A Process SCADA Network Upgrades P2-107 Planning 8,697,000 8,697,000 N/A USBR Brine Management Grant Project SP-116 Planning 315,000 130,000 55,000 130,000 118 Research Strategic Plan SP-120 Planning 365,000 308,000 20,000 18,000 19,000 119 Superoxygenation of Primary Influent SP-121 Planning 850,000 360,000 245,000 245,000 120 Operational Research Projects (annual allocation) SP-125 Planning 10,040,000 250,000 1,000,000 1,000,000 7,790,000 121 Process SCADA Link to Pump Stations SP-157 Planning 100,000 100,000 N/A North County Yard Information Continuity SP-162 Planning 666,000 666,000 N/A Data Storage Addition SP-163 Planning 444,000 444,000 N/A Treatment Plant Hydraulic Assessment SP-168 Planning 300,000 300,000 N/A Information Systems Upgrades and Replacements SP-169 Planning 12,510,000 12,510,000 N/A Information Technology Data Center Replacement SP-174 Planning 2,566,000 2,566,000 N/A Information Technology Workroom Replacement SP-176 Planning 180,000 180,000 N/A Research & Development Projects Total 57,316,000 1,048,000 1,320,000 1,393,000 53,555,000 Total Treatment and Disposal Projects 2,249,263,000 890,995,359 127,464,000 87,083,000 1,143,761,000 Capital Equipment Purchases 16,000,000 1,000,000 1,548,000 1,442,400 12,009,600 Total Collection, Treatment and Disposal Projects $ 2,965,626,000 $ 1,085,057,359 $ 179,636,000 $ 119,922,400 $ 1,581,050,600