He suggested that the Council, which had already scheduled May 5 as the finalization of the contract, forego studying goal and budget issues previously scheduled for April 28 and instead concentrate on the proposed contract, “even if we just go through the details.” Bobkiewicz said that the city “would rather be in a safer place time-wise,” and if the contract is not finalized Monday, “hopefully, we will have a much shorter item on the agenda May 5.”Vice Mayor Ralph Fernandez said he wanted to “restate that I know” that the Council had directed staff to examine municipal bonds, the financing component with Veolia, to “see if PERC can get close” to the same terms. “I think that’s going to take some negotiation,” but is “doable,” he added. “I think the goal that staff wanted to achieve is still in the realm,” and Fernandez expressed hopes that the goal is met.Bobkiewicz said that staff discussed the issue with principals of PERC and Alinda - the latter the financing arm of the project - earlier that day about bonds, and “we made it very clear to them” that the best deal for the city must be achieved. “Tax exempt is the best deal; they’re looking at” private placement bonds, and Bobkiewicz said staff “reiterated” that the best deal for the city is municipal bonds.Councilman John Procter, who had voted for Veolia, said “it was a promise they (PERC) made to get the job... my question would be” how they would achieve same if municipal bond funding is not utilized. “They said ‘Whatever we have to do to do that,’ “ PERC would lower costs, noted Procter, and “whatever does include municipal bonds.”Procter asked what the municipal bond market interest rate was that day, and Finance Director John Quinn said 4.88 percent. “It’s gotten better and continues to drop,” said Bobkiewicz.
Council to meet Monday to review WWTP contract, negotiations
April 25, 2008
Santa Paula City Council
With assurances from PERC that it will sharpen its pencil and whittle down prices to lessen fee impacts to ratepayers, and match the private/public financing offered by competitor Veolia Water, the City Council will hold a special meeting Monday night to review the draft contract and discuss ongoing negotiations.
By Peggy KellySanta Paula TimesWith assurances from PERC that it will sharpen its pencil and whittle down prices to lessen fee impacts to ratepayers, and match the private/public financing offered by competitor Veolia Water, the City Council will hold a special meeting Monday night to review the draft contract and discuss ongoing negotiations. The April 28 meeting will start at 6:30 p.m. and be televised live on Time Warner Cable Channel 10 and repeated according to schedule.PERC, whose Santa Paula plant would be the company’s first using MBR technology, was awarded the contract at an April 15 special meeting, despite Veolia’s offer that saved the city $22 million in financing for the $58 million facility.At the April 21 meeting City Manager Wally Bobkiewicz offered the “standing update” on the wastewater treatment plant, noting a 3-2 Council majority had approved PERC at the previous meeting. “Since then staff has been on a few occasions with the team,” including a conference call prior to the meeting to finish up parts of the contract.Bobkiewicz said that Project Manager Cliff Finley has been working with PERC to “tweak” the engineering design to find cost-savings, and legal contract language continues to be addressed by city attorneys. “The last piece is financing,” noted Bobkiewicz. “Council directed us to work with PERC to get the best deal for Santa Paula ratepayers... we’re not there yet.”PERC understands that costs to ratepayers is a top priority, “that we have to have the best rates,” and work is continuing on the issue. “They need to start construction July 15,” and Bobkiewicz said that if the contract is signed by May 5 it will suffice in meeting that court ordered milestone.
