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Wednesday, May 23, 2012

Council Airs Sewer Plan


Malibu municipal officials are taking a first big step when they ask the Malibu City Council at next week’s meeting to approve agreements with a bond counsel, legal specialists and banking and underwriting officers for financing a Community Facilities District for the proposed Civic Center wastewater treatment system.
Council members will be told another $6 million is needed to complete preliminary work on the design phase of the project including an Environmental Impact Report.
In a staff report prepared by Assistant City Manager Reva Feldman, she notes the agreements do not authorize the issuance of any type of indebtedness.
“Final approval of a CFD will require additional city council action and a vote by properties within the proposed district and will be brought forward to council at a later date,” Feldman wrote in her memo.
In 2009, a previous council approved $2.6 million for an agreement with RMC Water and Environment to provide engineering and design services for what is called the Malibu Civic Center Integrated Water Quality Management Plan.
Of the total approved $102,800 was used toward stormwater design and engineering services for Legacy Park leaving over $2.5 million for the design and engineering of a wastewater treatment facility.
However, according to city officials, the costs have ballooned because of the apparent dispersal process being considered, lower aquifer injection.
“All of the design and engineering work that has been completed to date indicates that the city will be able to proceed with a lower aquifer injection process. Exploratory test well drilling and groundwater extraction was successfully completed. It is anticipated that this assessment will be successful and allow the city to continue the project by constructing and testing a full-size well, the installation of six adjacent monitoring wells, and the completion of a final model,” Feldman wrote, in her memo to council members.
The total of funds needed is $6 million including final design and engineering of a deep-well injection system for $1.5 million and additional $1.9 million will be needed for the development of the EIR, final construction drawings, bid documents and all permits bringing the total to $6 million, according to Feldman. The funds provided by the city are expected to be reimbursed by the CFD. 
The council is being asked to approve a bond counsel agreement with Stradling, Yocca, Carlson & Rauth for bond counsel services to establish the Communities Facilities.
The council is also being asked to approve an agreement with Stone &Youngberg, which is now a division of Stifel Nicolaus for investment banking and underwriting services to help in establishing the CFD and in financing the project and issuing CFD debt.
“Due to the complex nature of the CFD and the potential subsequent benefit assessment district, a special tax consultant is necessary. David Tausig and Associates, Inc. has worked with the city on other assessment related projects and has provided public finance consulting services to over 2000 public and private sector clients,” Feldman added.

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