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Consent-General Government # 18.
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| Board of Supervisors |
Financial Services |
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| Subject |
| Adopt reimbursement resolution for current and forthcoming expenditures related to construction of Landfill Waste Management Unit 6F should the County pursue tax-exempt bond financing for capital project implementation. (No general fund impact) (Rinde) |
| Recommended Action |
| Adopt reimbursement resolution for current and forthcoming expenditures related to construction of Landfill Waste Management Unit 6F should the County pursue tax-exempt bond financing for project implementation. |
| Strategic Plan Goal(s) |
Operational Excellence
Sustainable Environment |
| Reason for Recommended Action/Background |
At the April 23, 2019 Board meeting, the Board of Supervisors approved an agreement with RJ Gordon Construction for the construction of the next landfill module, Waste Management Unit (WMU) 6F. The WMU is part of the County's Capital Improvement Plan for fiscal years 2019-2023 that was approved by the Board on March 12, 2019. The plan of financing as approved by the Debt Committee at their April 9, 2019 meeting includes the use of tax-exempt Solid Waste Revenue Bonds in order to finance a portion of the project. Prior to the bond sale the County should adopt a reimbursement resolution to allow reimbursement of any costs incurred on the capital project prior to the bond sale.
Attachment A provides an explanation of the rules of a reimbursement resolution in a memo from prior bond counsel, Orrick, Herrington & Sutcliffe, LLP of San Francisco utilized on the last capital project financing.
Any expenditure on the WMU project, within the scope of the project description, may be reimbursed to the County, at the County's discretion, from the bond proceeds. The reimbursement resolution can include those expenses that occurred 60 days prior to the reimbursement resolution being adopted by the Board, or those expenses incurred after adoption of the resolution but before the County is in receipt of the bond proceeds. All costs incurred on the WMU project since March 22, 2019 until a bond issuance that may occur, would be reimbursable to the County from the proceeds of the tax-exempt bond.
Should the County take a different approach to funding this project, the reimbursement resolution would become null. Adoption of the resolution is recommended at this time to preserve the County's ability to secure reimbursement from tax-exempt bond proceeds for the costs associated with the WMU project; therefore, staff recommends the Board adopt the reimbursement resolution found in Attachment B. |
| Collaborations (including Board advisory groups and external partner agencies) |
| The Department of Financial Services collaborated with the Integrated Waste Management division of the Department of Community Services, the County Administrator's Office and KNN who is the County's Municipal Financial Advisor on the Solid Waste Revenue Bonds financing. |
| Competitive Bid Process |
| Not applicable. |
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| Fiscal Impact |
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| Source of Funds for this Expenditure |
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Explanation (Expenditure and/or Revenue) |
| Further explanation as needed: |
| The reimbursement resolution itself does not obligate the County to any expenditure. A reimbursement resolution allows for costs that are incurred from 60 days prior to the date of adoption of the resolution and costs up until the sale of bonds to be reimbursed. This allows the costs that the Landfill incurs for construction of the Landfill Waste Management Unit 6F incurred prior to the bond sale to be reimbursed by the bond sale once it occurs. |
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