HomeMy WebLinkAboutAgenda CC 02.09.2010 WorkshopNotice of Meeting of the
Governing Body of the
City of Georgetown, Texas
FEBRUARY 9, 2010
The Georgetown City Council will meet on FEBRUARY 9, 2010 at 4:00 P.M. at the Council Chambers at
101 E. 7th Street
If you need accommodations for a disability, please notify the city in advance.
'Tff 711FITIM", M,
A Overview of the City's current outstanding and proposed debt obligations -- Micki Rundell, Chief
Financial Officer
B Discussion and possible direction regarding outsourcing of city services -- Keith Brainard,
Councilmember District 3
C Presentation and discussion regarding Project Lab -- Mark Thomas, Economic Development Director and
Kerry Oliver, President of Radix Biosolutions
D Presentation, discussion and possible direction to staff related to thedevelopment of a Thermal Storage
Distributed Energy Resource for strategic placement within the Electric System to augment the electric
distribution grid, reduce ERCOT cost exposure and power consumption over peak energy demand
periods -- Chris Foster, Chief Financial/Utilities Analyst and Jim Briggs, Assistant City Manager for
Utility Operations
Executive Session
In compliance with the Open Meetings Act, Chapter 551, Government Code, Vernon's Texas Codes,
Annotated, the items listed below will be discussed in closed session and are subject to action in the regular
session.
E Sec 551.071: Consultation with Attorney
1. Advice from attorney about pending or contemplated litigation and other matters on which the attorney
has a duty to advise the City Council, including this week's agenda items
F Sed 551.086: Competitive Matters
Discussion and possible action on 5 Megawatt Thermal Storage Distribution Energy Resource and Cost
Analysis of the program -- Chris Foster, Chief Financial/Utilities Analyst and Jim Briggs, Assistant City
Manager for Utility Operations
G Sec 551.087: Deliberation Regarding Economic Development Negotiations
- Discussions or deliberations regarding commercial or financial information that the governmental body
has received from a business prospect that the City Council seeks to have locate, stay or expand in or near
the territory of the City and with which the City Council is conducting economic development
negotiations; or to deliberate the offer of a financial or other incentive to a business prospect that the City
Council seeks to have locate, stay or expand in or near the territory of the City and with which the City
Council is conducting economic development negotiations
- Project Lab
- Infrastructure Incentives
- Discussion and possible action regarding a proposed indoor sporting facility
Certificate of Posting
I, Jessica Hamilton, City Secretary for the City of Georgetown, Texas, do hereby certify that this Notice of
Meeting was posted at City Hall, 113 E. 8th Street, a place readily accessible to the general public at all
times, on the day of , 2009, at , and remained so posted for at ]east
72 continuous hours preceding the scheduled time of said meeting.
Jessica Hamilton, City Secretary
City of Georgetown, Texas
February 9, 2010
SUBJECT:
Overview of the City's current outstanding and proposed debt obligations -- Micki Rundell, Chief Financial
Officer
ITEM SUMMARY:
Each year in preparation of the annual bond issuance process, staff prepares an overview of the City's current
outstanding debt obligations, as well as, a preview of the upcoming bond issue that the Council will consider
in April 2010.
This overview will include Revenue Bonds related to the City's utilities, as well as, both self-supporting and
taxable general debt obligations.
FINANCIAL IMPACT:
SUBMITTED BY:
Micki Rundell
ATTACHMENTS:
2010 Debt Overview Presentation
Cover Memo
Item # A
Attachment number 1
Page 1 of 17
City of Georgetown
Debt Overview
February 9, 2010
Debt Update
• Types of Debt
—General Obliqation
—Certificates of Obliqation
• Upcoming Debt Issues
Item # A
Attachment number 1
Page 2 of 17
Types of Debt
General Oblig
• Tax Supported
i%i+Ye inns es 7ii Y, eCale Q
— v1�y i��U�� �v> i �calv
tion Debt
An
UO
• ® •' I 1 ® •• • ® ®1
Item # A
2
Attachment number 1
Page 3 of 17
Certificates of Obligati
• Allowed under State Law
— Considered "routine"
— Public Notice required
• Generally considered Tax Supp(
• Majority - 20 year bonds
• City iSSUE
— City save:
rather tha
- Repaid I
M1
Self-supporting CO Debt
• Interest savings by issuing CO debt
I— I— L_ —1 L_
ratHertflan revenue Donus can be
1 % or greater
—GTEC - funded thru sales tax revenue
—Stormwater Drainage Utility - funded
Ll 11 U UOU1 11000
—Utility Funds —funded through rates
- Electric and/or Water/Sewer
Item # A
3
Attachment number 1
Page 4 of 17
Other Tax Supported Debt
• Limited Tax Notes
— Previously used in 2004 for GTEC projects
- Refinanced in 2006 as 20 year CO debt
— Used in 2009 for Electric debt
• Cost savings > $75,000 annually
• Will be refinanced next year once proceeds have
been expended
• Certificates of Participation
— Previously used to fund public safety vehicles
— City currently has no outstanding Certificates
of Participation
GO/CO Debt Outstanding
As of September 30, 2009:
- $57,412,475 -Tax Supported
— Includes:
- $35,500,000 authorized not issued - Parks
• bV2,525 - beff-Supporting
— $15,596,410 - GTEC
— $2,929,382 - Stormwater
— $1,216,733 — Airport
— $5,950,000 — Electric LTN
Item # A
4
Attachment number 1
Page 5 of 17
CO 'Debt - Historical
Fiscal Year
Tax Supported Self -Supported
1998/99
$16, 378,878
$5,166,122
1999/00
$16,948,092
$5,056,908
2000/01
$21,170,615
$4,939,385
2001/02
$20,065,626
$4,734,374
2002/03
$19,092,455
$7,639,031
2003/04
$20,792,386
$16,663,851
2004/05
$28,140,892
$20,675,095
2005106
$37,583,855
$21,111,145
2006/07
$52326,112
$21,068,888
2007/08
$54,293,528
$20,661,472
2008/09
$57,412,475
$25,692,525
Self -supported ins
7Gs t ,
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t
ti i�r�{tlit'S ��t4 ri�{t J t�i
i
222
• � I � �
0 �
Item # A
5
Attachment number 1
Page 6 of 17
GO/CO Debt - Historical
$60,000,000
$40,000MOMAXIMO
2 OW) "Wa'vhu�=�wsstAy'
{
10,000,t1;3
1�3..t100 2300AM 20OV02 2002103 2003,104 2 .'3 20- 051 6 2006107 200710A, 20DEV09
Item # A
Attachment number 1
Page 7 of 17
Revenue Bonds
• Funds the City's utility infrastructure
— Issued on Electric/Water/Wastewater system
0 Currently 20 year bond — level debt service
— Supported through system revenue
— "Coverage" required
- 1.35 times'- bond covenants
0 1.5 times - City Fiscal & Budgetary Policy
• Outstanding balances:
— $23,280,822 - Electric Fund
— $30,359,178 - Water Services Fund (W/WW)
I J12
NEW
Item # A
7
Attachment number 1
Page 8 of 17
Revenue
Debt -Historical
Fiscal Year
Water Electric
1998/99
$20,684,335
i $8,165,665
1999/t10
$22,663,452
$9,426,548
2000/01
$22,115,101
$9,959,899
2001 /02
$20,658,178
$9,346,822
i 2002/03
$25,224,894
$9,273,620
2003/04
$28,845,175
$10,058,588'
2004/05
$30,195,976
$9,868,036
2005/06
$28,076,208
$17,808,792
2006/O7
$27,268,155
$23,801,845
2007/08
$32,655,050
$24,624,950'
2008/09
$30,359,178
$23,280,822'
Revenue Debt -
Historical
35,000
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Item # A
Attachment number 1
Page 9 of 17
Current City Debt
Conditions
Bond Ratings
• Rating Agencies review financial and
management conditions
• Determine "Credit Worthiness"
0 Impacts cost of issuance and funds
• City's Current Bond Rating:
— Mnndv,.q
• A2 General Obligation & Revenue
— Standard & Poors
• AA+ General Obligation
• AA Revenue
Item # A
9
Attachment number 1
Page 10 of 17
Population Growth
Population
0
2001 2002 2003 2004 2005 2006 2007 2008 *2009 *2010
Tmiecled
Item # A
10
Attachment number 1
Page 11 of 17
Assessed Valuation
Item # A
1.1
Attachment number 1
Page 12 of 17
Total Tax Supported Debt Compared
General Sales Tax Revenue Growtt
L= TOW Ad VaWem Debt -0- Sales Tax
----- -------
Item # A
12
Attachment number 1
Page 13 of 17
0
1 11%,"11 Water -0- Electric -#- Wastewater -#- Sanitation -0- Storrnwater
Item # A
13
Attachment number 1
Page 14 of 17
rt,it.
Total Electric Debt Comp
to Electric Assets
lean O : EtWnc Ami r
Item # A
14
Attachment number 1
Page 15 of 17
Upcoming Debt
Issues
Item # A
15
Attachment number 1
Page 16 of 17
2010 Bond Issue
Total Net Proceeds - $15.57M
• Tax Supported Bonds:
—General Obligation - $1,320,000
• 2008 Authorization for Road Projects
• Construction of DB Wood/Williams Dr intersection
— CO Bonds - $250,000
• Fire Station 5 — Land purGhase/preliminary design
— Tax Impacts- $0.00419 based on 2009 values
• $0.003468 related to November 2008 authorization
2010 Bond Issue
Self-supporting CO Bonds - $4M
— AMI/CIS Year 1 Implementation - $3M
• 7 Year repavment from Water/Electric
M
• 2006 Annexation capital projects
Item # A
16
Attachment number 1
Page 17 of 17
Next Steps Debt Issuance Process
• Council authorizes SPFI to proceed with
bond documents — Feb 9, 2010
• Council approved "NOTICE OF INTENT"
to issue CODebt - March 23, 2010
• Offering documents finalized
• Rating Agency presentation
— March 29 & 30 - Dallas
• April 27 - Bond Sale
- Council adopts Bond Ordinances
• May 20 - Bond Closing
— City receives bond proceeds
QUESTIONS?
Item # A
17
City of Georgetown, Texas
February 9, 2010
SUBJECT:
Discussion and possible direction regarding outsourcing of city services -- Keith Brainard, Councilmember
District 3
ITEM SUMMARY:
FINANCIAL IMPACT:
SUBMITTED BY:
Keith Brainard, Councilmember District 3
Cover Memo
Item # B
City of Georgetown, Texas
February 9, 2010
SUBJECT:
Presentation and discussion regarding Project Lab -- Mark Thomas, Economic Development Director and
Kerry Oliver, President of Radix Biosolutions
ITEM SUMMARY:
FINANCIAL IMPACT:
SUBMITTED BY:
Cover Memo
Item # C
City of Georgetown, Texas
February 9, 2010
Presentation, discussion and possible direction to staff related to thedevelopment of a Thermal Storage
Distributed Energy Resource for strategic placement within the Electric System to augment the electric
distribution grid, reduce ERCOT cost exposure and power consumption over peak energy demand periods --
Chris Foster, Chief Financial/Utilities Analyst and Jim Briggs, Assistant City Manager for Utility Operations
ITEM SUMMARY:
City Council has adopted an Integrated Resource Plan that includes a blend of base energy from Coal,
Nuclear, Natural Gas and Peaking energy from gas fired combustion turbines along renewable energy
produced from renewable sources to complement the full array of energy producing assets in accordance
with the Electric utility 2030 Master Plan. Thermal Storage is a concept of proven technology that ranks
alongside geothermal and Compressed Air storage as a viable integration of energy efficiency and
conservation. Continuing our commitment to reduction of exposure to costs related to regulation of
greenhouse gas production and administrative costs of dispatch, scheduling and settlement within ERCOT,
staff is evaluating this deployable resource as another option of diversification. This project is currently
being evaluated at the GUS Board but Ice -Energy (company that we are dealing with related to the project)
has offered a substantial cost reduction if the City were to move forward in the next thirty (30) days with this
project. They have produced a number of units for deployment and are offering savings on the units still in
inventory. Since we have been in discussions with them on these units for the last ten (10) months they are
offering the savings to us at this time. Staff is not prepared to rush into any decision quickly on this but with
the cost savings being in the $500,000.00 range it is important to discuss this with City Council at this time.
GUS Board is still planned to consider this during their next regular meeting for consideration of a
recommendation and the expectation is that a decision would need to be made no later than March 9t' City
Council meeting.
STAFF RECOMMENDATIONS:
Staff is not requesting an action at this time other than discussion and feedback relative to the deployment of
these units. The open meeting discussion will cover the broad aspects of such a deployment and the benefits
as well as concerns.
FINANCIAL IMPACT:
Specific cost numbers and contract details can be discussed but will need to be reserved for executive
session as appropriate to reserve our rights to the competitive nature of negotiations and how it compares
to our wholesale energy costs related to peaking energy.
SUBMITTED BY:
Chris Foster, Chief Financial/Utilities Analyst; Jim Briggs, ACM/Utility Operations
[.v"WIT01'luhl\M�f.`s
Thermal Storage Technology PowerPoint
Cover Memo
Item # D
Attachment number 1
Page 1 of 9
Agenda
Hlotr f eve6 o,,ervio. of k O Enorvl Teehtagtrc Y t" Ia vatrrh .' ...
NelworKed infreaRrUMfe—How do°vre kTtegrary with :O tser SmIn,
dd projects?
What are tlpe Tangible and intangats:e berrtffts of snorasie?:..
x The Georgetown t'eoJect
Q
"�A TM1i3Ca..
Item # D
Attachment number 1
Page 2 of 9
Asset Utilization increases significantly
Product Specifications
CoOng Capability
N in Coafing Load; 5Tons
Total Storage afpacity; 34
Nqn,O
Tone.
Compatible with p35"raaf
-;
cagim tar HVAC snits front 4
ato
20 to
JYORK
Daytimo Peak Reduction
Physical Properties
r Oor ptwk Source Demand-
„, 110"W x 60 "D x da" H
Roductorw up to 10 kW
, Weight (dry). `1,500 lb
ftutation of Reduction:
'... MinisYU,m 5 hTs;
, Weight rarety -5,000 In
s On-P sak uaamant n 300 watts
�' Load (Orr butinfl'=-166'.
e Energy Sh fto(L 35 kWh
lbs/W r>
Item # D
Attachment number 1
Page 3 of 9
Effort on the End -use Customer
"Site -energy neutral or #natter'^
* Thct ae3:5`. ton W Ow ke "Bear �wW W s, laerizrr ,,'s e,
({f+z d)y^rj: js r1SUr.-Sl, fie,„.=C,''}'IiC<.„7Y�3 ,.I.f<xYS a}�4<.`+m f$?..„n1' p
�3as,irr�f a:�r,t• S.��a�::.:� ,.' _;�;� t�.�ur.�
c �'2tu nit . valet diehir!x3 rocs„)s the ace ei ar rx,€. iE be Wo tArta r"; z,,
niy h,,i'y T• m sa° to the e o ctse •,iJs+Pd'asi r
Effect on the End -use Customer
Sample Retail Customer in Central Texas
d�,ff
S undrs i staitad On a reta t customer
with a previous peak of 215 My.
Item # D
Attachment number 1
Page 4 of 9
Agenda
Wwor'keO infrastructure - How do we integrate with zateeur .small-
Grid prtiarcts?
Smarrt Gdd Soluiion
TOTAL Sxskarr, Oficdrinayy 6r pr,r un,> hi:
nW,,ptows toc "+rsumPl3arg
-11,spat,»7unbkr, tFttleY Scald, Dlsr sb tod Le.elaY SkVlare
*r`rcalicu t eel xrane p nOfz i"Wly g- 10e r€u +r"ta,
+nra i&% a m3Finlo, dru€<uiar r OaN;ry rusr?ur<,r
'Udti. Axtt7Yr9rdtR .,"= ,ry.0o,G2k5`.
-Nom hot Oos4 g mi t;omostVC#Yte3:.
=GW�'iil3rAd ltlloTUE�C$kzlds
•i"tueztio,s. 5nrart:grv�d tw., S+si +ro.arrt.W n 101 (F b 209):
Mrp 1Nf t;^ t,Cft.$ is C Tudr'hkL:�44.sUb �"IvY ...l.i ;. iw iv£oSr...
c �,ee,ry„ssu ny , sY'rdzrei !rt?_wtai e§ 1:7A SU'W.'t....
-�,�aSatwi�#^'vhsri�to.��;cre'�+[a,�twtxax:.
x°L— f li.l of t^rYC y 3t4 YttewYr} #'^"O MI-4€?-*
So6fF+T.. FYx4d'
Item # D
Attachment number 1
Page 5 of 9
Aggregated Utf ity Scan Benefits
A/C is the Boot Cause of the Problem
AiG peak ri rn*M N Ovmot rw? es* of <,Umrr er 96d Vr,)Vem: and is
dnver�; Vie eracraasnj coast of et , uu it csnO19",
J e
i e i�rtx x �„�ta ecme w
Cost '-Effective Solution
Wo , .= at grid parity without subszdy;..... .
n�Yti i.cvpn'ixra Cuae Rrwsµaetir+rrt
yy �
Item # D
Attachment number 1
Page 6 of 9
°ecg t d Utility Scale Benefits
Item # D
Attachment number 1
Page 7 of 9
The Georgetown Project
o-Reduce GHG erns.ion
r Regional economic development:
Job ci eofio k' Usu locally -soared HVAC raze tors
project expend,# d# 5 slay kvrft a tis , ggign
Market Penetration
Risk -free Deployment
r Payment,
1n;1A pa rro nt:
US does r 1 pay for tsar€ts ranti3 they are
r srzr rssi srs: This qreaUy redo .es US' nsk for
deployment
No rnaintenance xA s iintai after c,rz'kmsoos»nq
Deployment
Maximum 2 years
* tvf,r amulet° 12 n:rrttk s
Item # D
Attachment number 1
Page 8 of 9
Item # D
Attachment number 1
Page 9 of 9
Typical t Ratan Rooftop Installation
Economics
r O&M Costs'= 32 1unittyear
PtYmj,,,',fl to po T9 n % Pi'":row IYks#ICiitl ..:r 4%k uitE"CPS i4nder.
Remote iS.gYf114w:. fg, incf F4emg c.,%mraYVunic«.3#vx FY'035 of
rea3-6rne agnuslvs, ,,Aami rrtw a og and daza
-, Altyv,, f:ar ustar s d,,;wMh of ,tkaS a M",V:
,„fin «x ser', C.a! o„sati�ri su,a4% ot.
Item # D
City of Georgetown, Texas
February 9, 2010
See 551.071: Consultation with Attorney
1. Advice from attorney about pending or contemplated litigation and other matters on which the attorney has
a duty to advise the City Council, including this week's agenda items
1111flu&IN lu/.11
FINANCIAL IMPACT:
SUBMITTED BY:
Jessica Hamilton, City Secretary
Cover Memo
Item # E
City of Georgetown, Texas
February 9, 2010
Sed 551.086: Competitive Matters
Discussion and possible action on 5 Megawatt Thermal Storage Distribution Energy Resource and Cost
Analysis of the program -- Chris Foster, Chief Financial/Utilities Analyst and Jim Briggs, Assistant City
Manager for Utility Operations
ITEM SUMMARY:
FINANCIAL IMPACT:
SUBMITTED BY:
Jessica Hamilton, City Secretary
Cover Memo
Item # F
City of Georgetown, Texas
February 9, 2010
Sec 551.087: Deliberation Regarding Economic Development Negotiations
- Discussions or deliberations regarding commercial or financial information that the governmental body has
received from a business prospect that the City Council seeks to have locate, stay or expand in or near the
territory of the City and with which the City Council is conducting economic development negotiations; or to
deliberate the offer of a financial or other incentive to a business prospect that the City Council seeks to have
locate, stay or expand in or near the territory of the City and with which the City Council is conducting
economic development negotiations
- Project Lab
- Infrastructure Incentives
- Discussion and possible action regarding a proposed indoor sporting facility
[Myflu&IN lu/.11
FINANCIAL IMPACT:
SUBMITTED BY:
Jessica Hamilton, City Secretary
Cover Memo
Item # G