HomeMy WebLinkAbout1998-10-14 98-410 RESOLVECOVNCD. AMOn
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tremolo. 98-410.
Date: 10-1448
ItetNSubject RESOLVE, Appropriating FERC Performance Credit and Cash Reserves Associated
with the Parity Deal Restrvduring to due General Fund Improvement Reserve Account
RespaosT@Department: City Manager
Consecratory: With the recom conclusionofrbe PMC contract restructuring (commonly uttered in as
the Parity Deal) involving PMC, Bangor Rydm Electric Company and amending Charter municipalities,
approximately$2.IMisavailablefordi5Wbutimwvariouscoranunitics. Communities have received
distribution firm PMC consisting of two componwts: (1) the actual performance credit mbaw forthe
January 1 in April 30, 1998 time period; and (2) a portion of the cash reserves held by PERC that were
initiallyfi dedby Charercommunitiesasasurlierfinancialr uhemeot. Of the $329,W7.75 received
by the City ofBasi o , approximately $268,000 is coating from released cash reserves while slightly mom
than $60,000 is derived from four months ofperformance credits due to favorable plant operatime.
It has bear the Citys practice to dedicele this credit to the General Fund's Improvement Reserve Account.
The second funds future General Fund capital project needs which am typically considered during the
annual budget review and adoption process. We recommend mat this practice ofplanng these fords in
this reserve accono continue.
l � /
Manager's Comments: � , ,a x j � e taq
T� d,jzz
City Manager
Associated Information:
Resolve, Municipal Review Committee Letter
Budget Approval:
Fluxes Director
Legal Approval:
Ci Solicitor
Introduced for
Passage
v First Reading Page—of
x Referral to Finance Committee, 10-19-98, 5 pm
98-410
Assigned to Councilor Tyler October 14, 1998
CITY OF BANGOR
(TITLE.) tRroa1.13Pe..... . as............
Axsnsiated.ttatlxShe.Qaxi}y.A1ga6Ateekusduciu2.ts.5hs..Gsusxzl.kuuA.A.mnc9�.s.�!asat.R«erne gg,�ottm
By the City Caurui olrhe City ofBayyor:
R LVBD,
the Penobscot Energy Recovery Company Performance Credit for We period
January 1, 1998 to April 30,1998 and certain reserve funds held by PERC released as pert of the Parity
Deal Restructuring, totaling $328,608.75, we hereby appropriated to the General blind Improvement
Reserve Account(tt10035]24000).
IN CITY COUNCIL
October 14, 1998
First Reading
Referred to Finance Committee
IT4 LERR� 1
IN CITY COUNCIL
October 26, 1998
Notion for Passage Made 6
Seconded
98-410
EE50LVE
Appropriating PERC Parts two nee Credit
and Cash Reserves Associated with the
Parity Deal Restructuring to the General
Fund Improvement Reserve Account
ie4 U
M
Municipal Review Committee, Inc.
MMEReEm
n&12579 1 8,W, Melrt 04442.2579. (207)94213891 fa..' (207)9423549
September 10, 1998
Dear MRC Member Community
We are pleased to provide the first nuum to amending charter municipalities ban the PERC contract
ms ctuhng,or ParityDealwidchwasclosedon June26,1998. Enclosed is a check consistent with
rights gained as a result of yaw consent to the Parity Deal documents. The check represents your
payment ofpermannuce credits from January L 1998 to Amil 30, 1998 along with released cash
reserves split 50/50 between amending charter communities and the PERC partners. Additional crib will
be held until September 30,1998 for those who have not yet approved the Parity Proposal. Should one
or more charter municipalities not adopt the Parity Proposal, available cash will be redistributed to
amending charter municipalities atter September 30, 1998.
In order to provide clearance for this distribution, the MRC Board of Directors reviewed the
Distributable Cash calculation for amending charter communities for the period January 1, 1998 through
Apn130, 1998. This calculation was reviewed for conformity with Article XVIII and Schedules E and I
of the First Amended and Restated Waste Disposal Agreement Dated April 1, 1991 and Article XVIII
and Schedule E of me Second Amended Restated and Extended Waste Disposal Agreemem Effective
April 30, 1998 (the agreements). At the regular meeting on July 30, 1998, the MRC Board of Directors
approved ted calculation methodology and its allocation basis in accordance with the agreements.
We are pleased that this distribution meets our projected overall Parity Proposal disposal cost for 1998
despite the Parity Deal being effective for only eight months of 1998. We also hope that this
distribution for exceeds any unanticipated expenses that you may have incurred in association with
implementing the Parity Deal.
The Board of Dimeors wishes to thaox ail of you for all of your eTons to implement are Parity
Proposal. Working with you, we look forward to continuing our mission of an environmentally safe,
long-teran solid waste disposal solution at a reasonable arrd affordable core.
Sincerely yoouu�rs,`�'''�/'//�)
Greg Lounnder
Administrator, MRC