12/23/1997 - Laserfiche WebLink

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r- BOOK 103 FAGE'131' analysis to determine the availability of a funding source for this project. (Please reference the attached agenda item and minutes dated ,lune 3, 1997.) Design for the project is well underway, and the financial analysis is complete. The Utilities staff is, therefore, before the Board to present the financial analysis and to request authorization to proceed with the bidding of this project and its ultimate eonstruction. As part of this project, staff must also dispose of the existing R.O.. process train. The engineer. Camp Dresser and McKee, Inc.. is currently preparing an evaluation of the equipment to be disposed of. With this in hand, the Department would like authorization to proceed with the surplusing process through either negotiation with another municipality or through advertising and sealed bid. ANALYSIS After a review of the financial analysis by the Utilities staff, budget, and finance offices. the final conclusions may be drawn. 1. Funds are available through interfund borrowing. 2. The project funding amortized over a 30 -year payback period does provide a positive cash flow for the Utilities Department based on the assumptions made in the study and implementation of the attached C.I.P. 3. Payback time for the project is shown at 10 years. 4. It is staff's desire that no additional outside funding; i.e., a future bond issue, etc. is to be initiated prior to 2006. With this analysis in hand, the Department would like to proceed with the project. The Department has been contacted by several municipalities expressing interest in negotiating a purchase price for the acquisition of the process equipment at the North Beaeh facility. If an acceptable price can be established for this sale through negotiations with the Utilities staff, in conjunction with the County Attorney's office, then staff would recommend proceeding along this -7 wenue for disposal. If the CounO, cannot agree on a purchase price through the negotiation process, then we would proceed with surplusing through the bid process. For details of the plant equipment to be surplused, please reference the attached inventory spreadsheet. RECONNENDATION The staff of the Department of Utility Services recommends that the Board approve the following: 1. Acceptance and concurrence with the Utilities financial analysis dated August 1997 by Brown and Caldwell. 2. Proeeeding with the bidding and award process for the project upon completion of the project's design. 3. Authorization to proceed with surplusing of the North Beach process equipment as outlined above. DECEMBER 23, 1997 -18-