Town of Genoa October 6, 2015

Agenda Why are we here? Background Capacity Analysis & Facilities Plan Preferred Alternative Board Direction Implementation Schedule Funding Redevelopment Agency “RDA” Service Area Map Findings and Conclusions 2

Why are we here? Public Works is in the process of developing a comprehensive finance plan to fund the expansion of the North Valley Wastewater Treatment Facility. Public Works is recommending to the Douglas County Redevelopment Agency (“RDA”) the use of RDA funds to assist in the project funding. NRS (4) (b) requires the Board to consider the opinions of persons who reside in the redevelopment area or the immediate neighbor in which the redevelopment area is located. 3

Background 1. Discharge permit requirement(s) B.TF.8“The Permittee shall notify the Administrator… after the 30-day average daily influent rate first equals or exceed 85% of the design treatment capacity… The letter shall include:” B.TF.8.4“A status report on the treatment works which will outline… modifications to the treatment works which are needed to attain the permitted flow rate…” B.TF.8.5“The Permittee’s schedule of compliance to provide additional treatment capacity before the 30-day average daily influent flow rate equals the present design treatment capacity of the Permittee’s facility.” Douglas County has ~150 EDUs of remaining capacity under ideal conditions 4

Capacity Analysis & Facilities Plan Non-Capacity Deficiencies Capacity Deficiencies Evaluate five (5) alternatives Alternative Analysis Five (5) Alternatives Economic Evaluation (Project Cost, Cost per gallon) Non-Evaluation (Reliability, Operability, etc.) Life Cycle Cost Analysis 5

Preferred Alternative Construct Alternative LT-2 Sequencing Batch Reactor & Partial SH-2 Geotextile Dewatering Total Project Cost $7.5 Million 6 Rolling A SBR, Dayton, NV

September 3, 2015 Board Direction Adopt the Facility Plan and Capacity Analysis with Alternative LT-2 Treatment – Sequencing Batch Reactor (“LT-2 SBR”) coupled with SH-2 Geotextile Dewatering (“SH-2 GD”) as the preferred and recommended project. Direct Public Works to begin the solicitation process to hire a design consultant for the implementation of Alternative LT-2 Treatment – Sequencing Batch Reactor (“LT- 2 SBR”) coupled with SH-2 Geotextile Dewatering (“SH-2 GD”). Direct Public Works to file an EDA Grant application with WNDD, and authorize the Public Works Director to sign the grant application. Direct Public Works to bring back an agreement with WNDD for grant administration, if the grant is awarded. Direct Public Works and Finance to file a SRF Clean Water Loan Application with NDEP. Direct Public Works and Finance to initiate the bonding process (G.O. / Revenue Bonds) required for the SRF Loan. 7

Implementation Schedule October 2015 – Submit EDA grant application January 2016 – Select engineering design consultant March 2016 – BOCC Meeting Approve engineering contract March 2016 – Begin design/implement funding plan March 2017 – Permitting May 2017 – Bidding August 2017 – BOCC Meeting Approve construction contract October 2017 – Begin construction October 2018 – Plant startup December 2018 – Final completion 8

Funding Potential Funding Resources Grants EDA – Grant up to $2.0M $10,000 per job creation or retention 50% local match Redevelopment Agency FY 2016 budgeted unappropriated capital reserves = $3,495,147 M State Revolving Fund Loan SRF – Low Interest Loans below Market Rate Flexible – Interest only on loan draws until project closure with final debt service based on actual loan draws 9

Funding Scenario Funded by Utility Revenue & Grants Project Cost = $7.5 M (LT – 2 SBR coupled with SH – 2 GD) EDA/RDA Grant = $2.0 M Debt finance balance of project cost (SRF Loan) New annual debt service = $380,000 (PV = $5.5 M, i = 20 years) Debt Service Repayment 1 Shift $100,000 operating expense to annual debt service Operating Revenue (system $507,000 in FY 2019) 10 New Annual Debt Service($308,000) Operating Revenue 1 $607,000 Cash Flow$227,000 No increase in monthly rates to the users Maintain positive cash flow

Redevelopment Service Area 11

Redevelopment Agency Findings and Conclusion NVWWTF provides sewer service to a significant portion of the Redevelopment Plan Area(s) Future development of the RDA Plan Area(s) is dependent upon the availability of sewer capacity in the North Valley Wastewater Treatment Facility. The Project meets the definition of a Redevelopment project and is consistent with many of the purposes and goals outlined in the Redevelopment Plan approved in The economic benefits of the Project are considerable. 12

QUESTIONS 13