CITY COUNCIL AGENDA ITEM
Meeting Date: August 23, 2005
Subject/Title: Adopt a Resolution declaring official intent to reimburse
certain expenditures for the Solid Waste Transfer Station in an amount not
to exceed $7.5 million from proceeds of the Solid Waste Revenue Bond.
Prepared by: Brian Kelleher, Accountant II
Submitted by: Pamela Ehler, Director of Finance and Information Systems
Adopt a Resolution declaring official intent to reimburse certain
expenditures for the Solid Waste Transfer Station in amount not to exceed
$7.5 million from proceeds of the Solid Waste Revenue Bond.
On May 25, 2004, by Resolution No. 2004-113, City Council approved the
2004/05-2008/09 CIP Program that includes the Solid Waste Transfer Station
Improvements – Phase III, CIP # 542-5402, as part of the program.
On July 12, 2005, by Resolution No. 2005-166, City Council approved a
contract with Carlton Engineering for design development services.
On July 12, 2005, by Resolution No. 2005-167, City Council approved a
contract with Concept Design for construction management services.
In 1994, when the City began collecting its own solid waste, the solid waste
had to be hauled directly to a landfill or a processing facility from
Brentwood. Most routes were about 6-8 hours of collection time, plus 2-3
hours of travel time to and from the disposal facilities located in
Vacaville, Livermore, Stockton or Pittsburg.
In 1998, the City built an interim solid waste transfer station that
significantly improved the operation’s efficiency and has contributed
greatly to the City’s ability to offer its residents and businesses
collection services at very competitive rates.
In a continuing effort to improve the operational efficiency of the City’s
Solid Waste Transfer Station and to improve our ability to allow for limited
public access, staff has been working to make significant changes to the
site. Most notably, the operation will move under roof, an aboveground
loading process will be constructed as well as expanding the footprint of
the dump pad to accommodate the expected growth in solid waste volumes
through build-out for the City.
Without these significant operational improvements, the City’s transfer
station will have a very difficult time efficiently processing the growing
volumes of material expected through build-out. The City would have to
consider alternatives such as going back to direct hauling to other
facilities. Direct haul can cost approximately 5 times more to haul compared
to transferring. For example, one transfer load cost approximately $160 per
haul of 21 tons compared to hauling 3 smaller, 7 ton collection truckloads
to remote sites at an estimated cost of nearly $600.
Another alternative to accommodate the increased volumes would be to expand
our operating hours and our route times to spread out the rate that
materials are processed at our facility.
Either of the above options would significantly impact operational
efficiency. With the requested improvements, the City of Brentwood will meet
the needs of our City through build-out and allow for limited public access.
The City would also be able to offer access to other franchised haulers,
landscapers and construction and demolition haulers looking for closer
dumping facilities. All other dumping facilities are currently about 50
minutes away, roundtrip. Offering this access to high volume haulers would
give the City a potential revenue stream to help offset transfer station
capital costs. This potential revenue stream could range from $2,000 to
$20,000 per month, depending on committed volumes and pricing points.
In March 2004, the City completed a 5-year rate study and a master plan that
provided us with a preliminary cost estimate of $4.8 million for the needed
transfer station improvements. This figure did not include project soft
costs such as plan check fees, design, public art fees or potential
In early 2005, staff contracted with Carlton Engineering and Concept Design
to prepare a schematic design and an engineer’s estimate. The geological
studies came back and determined that significant soil densification work
would be required to provide the proper foundation to the concrete floor
structure. This unknown geological work is estimated to add approximately
$700,000 bringing the project’s estimated hard cost to about 6.1 million.
When the soft costs mentioned above are added to the project, the total
projects costs come to $7.0 million.
The bond issuance will not occur until January 2006. Therefore, the City
will pay for current costs and be reimbursed when the bond is issued. Fiscal
Year 2005/06 expenditures are anticipated to be $2.2 million. This
resolution is required in order to allow the City to reimburse itself for
any expenditures incurred between passage of this resolution and issuance of
ADOPT A RESOLUTION DECLARING OFFICIAL INTENT TO REIMBURSE CERTAIN
EXPENDITURES FOR THE SOLID WASTE TRANSFER STATION IN AN AMOUNT NOT TO EXCEED
$7.5 MILLION FROM PROCEEEDS OF THE SOLID WASTE REVENUE BOND.
WHEREAS, On May 25, 2004, by Resolution No. 2004-113, City Council approved
the 2004/05-2008/09 CIP Program that includes the Solid Waste Transfer
Station Improvements – Phase III, CIP # 542-5402, as part of the program;
WHEREAS, the City of Brentwood (the "City") intends to finance the
acquisition and/or construction of solid waste transfer and processing
facilities (the “Project”); and
WHEREAS, the City 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 City reasonably expects that debt obligations in an amount not
expected to exceed $7,500,000 will be issued and that certain of the
proceeds of such debt obligations will be used to reimburse the
NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Brentwood
hereby finds, determines and resolves as follows:
Section 1. The foregoing recitals are true and correct, and this City
Council so finds and determines.
Section 2. This declaration is made solely for purposes of establishing
compliance with the requirements of Section 1.150-2 of the United States
Treasury Regulations. This declaration does not bind the City to make any
expenditure, incur any indebtedness, or proceed with the Project.
Section 3. The City hereby declares its official intent to use proceeds of
indebtedness to reimburse itself for Reimbursement Expenditures.
Section 4. This resolution shall take effect from and after its adoption.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at
a regular meeting held on the 23rd day of August, 2005, by the following