Or PPT Troutdale's Future V8.1

8/9/2019 Or PPT Troutdale's Future V8.1

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9/11/2009

September 2009

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Welc ome to


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9/11/2009

September 2009

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1. WASTE:ItisagainstORHB3744 (2005)to

create/allowthedisposalofwaste

(MunicipalSolidWasteMSW)if

thereisanyotherknownalternative.

Sinceinceptionin2005,a43%

increaseinMSW andbylaw,itmust

stabilizeby2009. Multnomahis1of

3topnoncompliantcounties.ORS

459.015(1)ORS459.015(2)

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2. ENERGY:

DuetosuccessfulpassageofOregon

SB838,thepeopleofOregonwillbepayingforrenewablegenerators average50MWperyearand

25%by2025.

The math is stillright

$11,868 perc ap ita ->

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3. LOSSOFPROFITS:

Howevercreated,Troutdale,as

alowcommercialsuburb,is

notahighpriorityfor

restorationduringapoweroutage.

DOEestimatelosses:$228/per

capita,yr.evenwithoutaterrorist

attack.Inthestatewith#2Highest

unemployment,thisisstressful.

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4. TAXCODE:

PerTreas.Reg.Section

1.1038(f)(2)(ii)(c)

Troutdalemayuse

municipal(taxexemptbonds)for(x)onlyif(x)

uses>35%oftheMSW.

(Howdoes>35%$$$cure100%ofaproblem?)

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5. Ability:

Due

to

Troutdales

need

to

downscale

to

match

a

diminishing

budget(baseduponanticipateddiminishingtaxesduetothe

stateoftheeconomy)Troutdaleletgothestaffwhoperformed

EconDevelopment.

Gloryhoundingbehavior,ratherthanriskmitigationHowever,

Troutdalehasareputation,dueto____?

TDisanimmatureparticipant GDDA

TD has no p artners - Mc Minamins

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9/11/2009

September 20098


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NewCREBs:CleanRenewableEnergyBonds

Onlyforrenewableresources energy

New CleanRenewableEnergyBonds

EnergyImprovementandExtensionAct2008=$800MillionCREBs

AmericanRecoveryandReinvestmentAct2009=$1.6BillionCREBs

= $2.4BillionavailabletoPoliticalSubdivisions,Coops,Utilities

AProjectmustbringrequiredindependentengineerscertificate.

CREBsareawardedtothetaxpayer forthebenefitoftheapplicant.

CREBsmaymeet 70%ofconstructioncost.

Whereshall theother30%comefrom?

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WhoeverutilizestheMSWneedstoconsidereconomiesofscale. Itisfareasiertorepaytheloanfora500tpd facilitythan10individual50tpdfacilities.

WhenevertheOREPAcracksthewhiponthelaw,thefacilitywiththelowesttippingfeewillcommandthemarket. Thelawwillmostlikelybefeltinthemostnoncompliantcountiesfirst.

ItisagainstthelawtomonopolizetheMSWmarket itmovesaccordingtolowestpricedtippingfee. TheZESCproposalstandsheadandshouldersaboveotherproposalsinthatitdeclinesthetippingfees(they

mayreturntopoliticalsubdivision).

Stillunsolved: themissing30percent.

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Public/PrivateVenture

KeepsGovernmentoutofbusiness performingperobligationtoconduitcongressionallycreated

instrumentstothepeople. GovernmentmayutilizeCREBsperagreement(thisistechnically,then,aconvertibledebttoequityinstrument)toacquireanAssignmentofProceeds(cashflow fromZESC

profitcenters).

Weaknesses

GovernmentwillneverownasingleinchofthefacilityorIP.

GovernmenthasminorityinfluenceonORZESCLLCBoard.

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TIF proc edures Good for rea l esta te not renewa b le

energy.

For Renewable Energy-----

Tax Cred it Monetiza tion Investors seek certa inty in the ta x

c od e throughout deb t servic e.

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If the only way to solve Troutd a le sfive-fold p rob lem

requires utiliza tion of CREBs in a pub lic / p riva teventure

-and-

CREBs a re not performingthe usua l way,

what is the a lterna tive?

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9/11/2009September 2009 15

Bank A Bank Bsells 100 worth of stoc k

pays 100 cash fo r stoc k

Op ening Leg

Bank A Bank B

pays 100 cash p lus repo interest

sells 100 worth of stoc k

Closing Leg

RatesAAA to AA 2.0%A 3.5%BBB 5%Sub-investment grad e 10%


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? WhatDeveloperwillbringabankpreparedtoallowCREBsascollateral

andprovide30%,too?

IF

1. The

CREBs

are

not

awarded

and

2. dNPV financingisnotforthcoming,

Then

what

Developer

has

an

debt

investor

standing

by

preparedtoprovidecollateralfornewtechnologyandunderwritetheneededpiece?

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ZESC: ZeroEmissionsSanitaryCombustion.

UsesadvancedIP vortexgrinders,reversevortextornadocombustors,plasmaassistedcombustion,nonthermal(inducedby

magneticfieldsratherthanheat)plasmatreatmentofeffluentto

removeO2duringheatphase=nosmokestack,coupledtohigh

efficiencygenerators. Upshot:designisNPR(NoPermitRequired)

compliant.

IndependentEngineerssignoffs 1yearcommercialallparts.

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TheNTPIPcomesoutofLANL,Dr.Rosochas 2006testimonybeforeDOE

isreleased. Dr.Rosochas answersandPowerpoint forKYEPAhavebeen

forwardedtoTroutdale.

FOR MORE INFO..See ZESC PPT


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9/11/2009September 2009 18

Plan A Plan B Possib ility 1

CREBS

Dev.

FS - TD

FS - Dev.

Non-MOUPossib ility 2

Dev.

Inv.

Inte rim Construc tion Loan

Permanent Loan Upon Futureflow

BPO / APO

IP

Dev.

TD

BPOInv.

Dev.

TD

IPAPO

Revenuesharingarrangementbetweendevelop er anddeb t investor.


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Troutda le is poised :

Developer- Marni Zollinger (ZESC)

CREBs ava ilab le, dNPV possib le

Loc a tion- Ind ustria l Park?MSW from Metro No tipp ing fee

(Reserve) Deb t Investor- Mark Alexander

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EngineeringCerts alreadyprovided.

Facilitywillnothaveasmokestack,noairpermitting(exceptNPRprocedure

asconductedbyOBrien&Gere) needsbuildingpermitonly.

Facilityishighefficiency,exemptfromORSiting Committeecontrol

FacilityFERCEWG bondauthorityinplace

StandbyDebtInvestorscollateralauthenticationalreadyprovided,

ButwhohascheckedthewillingnessofthestandbyDebtInvestor,today?

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1. Introductions

2. Whatisyourenergybackground? WhyZESC?

3. Whatisyourfinancebackground?

4. WhatisyourcommitmenttoZESC?

5. WearelookingatanMOUthatwouldobligateTroutdaleto

finance50%ofaZESCfacility. IfCREBsarenotawardedand

dNPV financeisdenied,describehowyouarepreparedto

performsothatTroutdaleisntinanuntenableposition?

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9/11/2009

September 2009 22

Part 2

Marni Zollinger


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FIVE YEAR PLAN Phases 1-3

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Year 1 Year2 Year 3 Year 4 Year 5

P1: Build ZESC, TEDA

P2: ZESC Take Out, Muni

P3: D-BED (Bank)


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Build ing ZESC: Not a TD affa ir. After build ing -permit, this phaseestimated time req: 2-3 years.

TEDA: Troutdale Economic Development Authority

Prepare, autho rize, and empower a mirror of Gresham GDDA This entityc an mirror what is c om mon a nd p rep a re for what is uncommon: havingsome financ ia l ump h - a c ashflow and a ssets to b e leveraged by TD.TEDA a lso invites Institut iona l Investo rs to underwrite TD projec ts. TEDAmay la ter have a n ISDA ma steragreem ent with the D-BED.

The D-BED is no t yet o rganized , but is a possib ility if c urrent ac c essesto the Trea sury are made p ermanent. A permanent sta tus wouldc rea te a c onduit to c onduc t non-rec ourse REPO transac tions withthe Treasury even up on suc h things as ta x c red its.

ZESCs p rojec ted

a) REC a nd energy t ra nsac tions andb ) doc umented ba nk refusa ls to c ond uit

support our p lan.

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WhenZESCisoperationalandhascompleteditsmonitoredperiodtothesatisfactionofthePermanentLoanTakeOutpartners(JefferiesInvestmentBankorotheroption,ifbetter), TDCityCounciltoconsiderdecisiontoutilizeCREBs(returnedafterclosinglegofrev.repo)inorder

to

obtain

Assignment

of

Proceeds

(Title

to

Cashflow)

per

MOU. If

approved,CityCouncilappointsZESCboardmember(s). IsuggestCityCounciltopassmotiontoleveragethosenewassetsonnonrecoursebasisonly;somecashflow gotoTEDA,someforinvestmentandtheresttoCityBudget?

IrecommendtheZESCtitles(splitassignmentssothattheyaremoreeasilyleveraged)becustodied attheDBED.

Upon Ca p ita liza tion of the TEDA, offic ers and sta ff to be hired . AllCity Counc ilors to be TEDA o ffic ers, choosing foc us for development.City Counc ilors remunera ted ac c ord ing to desire to work a t TEDApart or full time.

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TroutdaleMunicipalUtilityDistrict: ThroughPacifiCorpInterconnect,

PacifiCorpwillknowEWGoutputthoughsoldtowholesalebuyers.

Beginprocessofnegotiationforownershipofmunicipallinesin

ordertogaincashflow betweenWholesaleandRetailprice(and

avoidRPSlawspremium). AskPacifiCorpforproposal(theyprovide

financing)inordertobuy(atFMV)yourownlines.

Rememberwhenconsideringtheircounteroffer,if,anythatthe

peopleofTroutdalefinancedthelines,notPacifiCorpinvestors. Ifnecessary(ordesired),condemn,inordertoown.

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Havingaccess(anISDAaccount)totheTreasury(theessentialpoweroftheDBED)isarareaccomplishmentnottobetreatedlightlyorasagiftforfriends.

Wehavethebeginningsofsuchinprogress. OneofZESCstasksthenextthreeyearswillbetomakethataccess permanent.

ZESCtopreparetheDBED:

Acommercial/municipallender

collateralwillbepriced(andrepriced)bytheTreasuryofficials,only

Willserveequallyandconfidentially

Willadvertiseonlythroughfrontentities,asanonrecourselender

MayexpandservicesthroughfrontentitiestohomeISDAaccounts

MarniZollingerorproxywillbeapermanentmemberoftheboard

MayinviteTDCityCouncilBoardrep/CitizenBoardrep

7membersontheboard

Openchairstobereplaced:one/year

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Within 5 years Troutda le to be

1. Energy independent, p roduc ing renewab leenergy in multi-fuel c apab le system (RPScompliant).

2. EPA and IRS c omp liant, solving both TDs and the

neighbor s p rob lems. TD is off the hook.3. Financ ia lly, on par with state.

4. Busting with wea lth a nd c rea tivity.

5. Politic a l Prac tic a lity; everyone likes suc c ess. If moving forward to a tta in this op tiona l future.... ->

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Counc il Meeting:Resc ind LtrLOIExec ute MOU

With MOU, Hartmann c an trigger Sena tor

Wydens p romise to endorse dNPV option(financ ing parity) for benefit o f Troutda le andZESCs.

_____________________________

TD c ity c ounc il to beg in p roc ess of TEDA- first step : lega l organiza tiona l and reg istra tion filings,

c onferring of powers.

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Documents

Or PPT Troutdale's Future V8.1