Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Jim Eggemeyer, Director, Office of Sustainability
Subject: Bond Refunding for the South Bayside Waste Management Authority
RECOMMENDATION:
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Adopt a resolution authorizing the South Bayside Waste Management Authority (SBWMA) to issue up to $64 million of solid waste enterprise bonds to refund outstanding bonds and finance improvements to SBWMA solid waste management facilities.
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BACKGROUND:
The County of San Mateo has been a member of the South Bayside Waste Management Authority (SBWMA) joint powers authority since December 9, 1999. In August 2009, the SBWMA issued bonds totaling $53,500,000, referred to as the 2009A Bonds, to fund facility improvements. The majority of those bonds ($44,685,000) remain outstanding.
The interest rate on the 2009A Bonds ranges from 5.0 to 6.25 percent. Current interest rates are much lower (4.26 percent as of March 2019), and therefore refunding the 2009A Bonds could result in an estimated $10 million in present value savings and secure $20 million in new revenue (see Attachment C for additional information). Therefore, the SBWMA is seeking to refund the 2009A bonds on June 1, 2019. This would allow the outstanding bonds to be redeemed with the proceeds of the proposed "2019 Refunding Bonds" by September 1, 2019.
On September 28, 2018, the SBWMA approved a Bond Refunding Plan to accomplish the cost savings and revenue generation described above. Since then, the SBWMA has identified next steps for bond refunding and projects which could be financed by the revenue generated by refunding. At this time, the SBWMA is asking each member agency to give final approval to the refunding to move forward.
DISCUSSION:
For the SBWMA to issue refunding bonds, member agencies, including the County of San Mateo, must provide authorization through resolution. The proposed 2019 Refunding Bonds will: (1) refund the SBWMA's Soli...
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