1. Wastewater Treatment and Disposal Upgrade Nampa Wastewater Advisory Group Meeting #10 October 9, 2012

2. Workshop Agenda & Objectives Present the outcomes of the Sept. 11 City Council workshop Present DEQ SRF loan opportunity Provide an overview of the judicial confirmation process Review next steps

3. Sept. 11 City Council Workshop Outcomes Steve Burgos, Brown and Caldwell

4. City Council Workshop Outcomes Decision 1: Adopted the Wastewater Fund Industrial Incentive Policy Decision 2: Agreed with the proposed revenue requirements for the sewer fund through 2017

5. City Council Workshop Outcomes Decision 3: Directed the Wastewater Program Management Team to proceed with increasing rates equally across all customers Decision 4: Directed the Wastewater Program Management Team to prepare for a bond election

6. City Council Workshop Outcomes Next steps: – Develop Standard Operating Procedures (SOPs) related to Industrial Incentive Policy – completed by November 2012. – Finalize Cost of Service Study with rate increases allocated equally across customer classes – completed by late October. – Begin preparations for bond election – Spring 2013

7. DEQ SRF Loan Opportunity Michael Fuss, City of Nampa

8. DEQ SRF Loan Opportunity Idaho DEQ State Revolving Fund Loans – Low-interest loans to build or repair wastewater treatment plants – Typical yearly funding level is $13M – Priority list established based on project need – small cities are usually favored Nampa applies for SRF funding every year

9. DEQ SRF Loan Opportunity Things changed! – Approximately $50 million in available in 2013 from refinancing existing loans – Nampa is ranked 17th on the list for funding in fiscal year 2013. – If all projects ahead of Nampa are funded there would be approximately $14 million available for Nampa The total loan City of Nampa needs is $17-$18 million.

10. DEQ SRF Loan Opportunity SRF Loan – 2.0% Interest Revenue Bond – 4.8% Interest Receiving an SRF loan results in a $7.5 million savings over Revenue Bonds

11. DEQ SRF Loan Opportunity All loan application requirements must be met by January 1, 2013. The loan application requires the City to verify it is authorized to take on debt. Cities can only enter into debt by voter approval or Judicial Confirmation

12. DEQ SRF Loan Opportunity The deadline to file for the Nov. 2012 bond election was Aug. 31, 2012. The deadline didn’t allow enough time for Nampa to meet the final request.

13. Urgency The only option now available to Nampa to meet the 2013 SRF loan application requirement is to pursue Judicial Confirmation to allow Nampa to take on debt The City Council on Sept 11 voted to have a public hearing to receive public input on whether to pursue Judicial Confirmation

14. DEQ SRF Loan Opportunity A successful Judicial Confirmation outcome will allow Nampa to finalize their SRF Application. A public hearing is set for Oct. 15 to receive public input on whether the City should pursue Judicial Confirmation Three options: – Judicial Confirmation – Bond Election – Pay Cash

15. DEQ SRF Opportunity - Considerations The deadlines are tight No time for slipups in schedule

16. DEQ FY 2014 SRF Loan Nampa can resubmit for any remaining funds for FY 2014 All other entities can resubmit for FY 2014 as well Scoring and ranking for FY 2014 remaining funds can change

17. Judicial Confirmation Process Overview Matthew Johnson, White Peterson

18. Judicial Confirmation Article 8 Section 3 of Idaho Constitution Seek judicial determination of validity to enter into loan as an “ordinary and necessary” expense Timing of process will be tight for Jan. 1 deadline even with immediate start

19. Judicial Confirmation Idaho Code 7-1301 et seq Schedule: – Set and notice public hearing (15 days prior to hearing) – Public hearing (14 days until they can authorize the action) – Council action on filing petition (Wait 30 days before hearing) – District Court hearing and determination – Potential appeals (42 days from judgment)

20. Judicial Confirmation Idaho Code 7-1301 et seq Factors the judge will consider: – Traditional and longstanding municipal function – Improvements vs. expansion – Urgency – Certainty on permit requirements

21. What’s Next Rosemary Curtin, RBCI

22. Next Steps October – 1 Facility Plan was submitted to DEQ for review – 15 Judicial Confirmation public hearing – 29 Special Council Meeting to authorize filing the Judicial Confirmation petition November – 15 Facility Plan available for public review – 29 Special City Council meeting to adopt Facility Plan

23. Next Steps December – 17 City Council must authorize Public Works to file 2013 SRF application – 31 2013 SRF application will be submitted January – 17-31 Phase I Environmental Information Document available for public comment

24. If Judicial Confirmation is not successful the City may choose to hold a bond election February – 19 Special City Council meeting to authorize the May election – 19 Special City Council meeting to set the date for wastewater rate increase public hearing – 20 Process to educate the community of Nampa about the wastewater rate increase begins

25. Next Steps March – 1 Last day to file ballot request with Canyon County for bond election April – 22 Special City Council public hearing for the wastewater rate increase

26. Next Steps May – 21 Hold bond election July – 1 Rate increase effective

27. Next Steps NWAG next steps – Meet in early November to discuss rate increases

28. Nampa Wastewater Advisory Group Workshop Wastewater Program Update October 9, 2012 Questions? For more information visit www.cityofnampa.us/wastewater www.cityofnampa.us/wastewater Thank You