Adopt reimbursement resolution for current and forthcoming expenditures related to construction of Landfill Waste Management Unit 6H and Leachate Pond should the County pursue tax-exempt bond financing for capital project implementation. (No general fund impact) (Haynes/Xiong)

Adopt reimbursement resolution for current and forthcoming expenditures related to construction of Landfill Waste Management Unit 6H and Leachate Pond should the County pursue tax-exempt bond financing for project implementation.

Sustainable Environment

The Integrated Waste Management Division of the Department of Community Services anticipated several projects in the County’s Capital Improvement Plan for fiscal years 2022-2026.  Two of those projects are the construction of a new Waste Management Unit (WMU) 6H and the reconstruction of the Waste Management Unit G Leachate Pond (G-Pond) at the landfill.  The department is working with Department of Financial Services, County Counsel, and KNN Public Finance to secure debt financing to fund these projects.  The plan for financing includes the use of tax-exempt Solid Waste Revenue bonds.
 
The Board of Supervisors adopted plans and specifications for the construction of WMU at the November 9, 2021 board meeting.  Plans and specifications for the reconstruction of the G-Pond will be brought to the Board for approval once financing materializes.  As expenditures are expected to be incurred prior to the debt being issued, the County should adopt a reimbursement resolution to allow reimbursement of any costs.     
 
Attachment A provides an explanation of the rules of a reimbursement resolution from Jones Hall of San Francisco, who are serving as bond counsel to support the debt financing.
 
Any expenditure on the WMU projects, 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 no more than 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 projects since December 10, 2021 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 these projects, 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.

The Department of Financial Services collaborated with the Integrated Waste Management division of the Department of Community Services, the County Administrator's Office, KNN who is the County's Municipal Financial Advisor, and bond counsel Jones Hall on the Solid Waste Revenue Bonds financing.

Not applicable.