HomeMy WebLinkAboutReso - CC - 011-2009RESOLUTION NO. 11-2009
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME
OPPOSING THE ISSUANCE OF $65.45 MILLION IN REVENUE
OBLIGATIONS BY THE SOUTH BAYSIDE WASTE MANAGEMENT
AUTHORITY TO FINANCE THE CONSTRUCTION OF THE SHOREWAY
ENVIRONMENTAL CENTER OR OTHER SOLID WASTE FACILITIES
WHEREAS, the City of Burlingame is one of twelve equity members of the
South Bayside Waste Management Authority Joint Exercise of Powers Agreement
(herein referred to as the SBWMA JPA); and,
WHEREAS, Section 7.1.1. of the SBWMA JPA requires a two-thirds (2/3)
affirmative vote of the JPA member agencies to issue bonds or notes or to refinance such
bonds and notes; and,
WHEREAS, SBWMA has proposed construction of a new refuse transfer station
and recycling facility, the Shoreway Environmental Center (PROJECT, herein), located
in San Carlos, and has proposed the issuance of revenue obligations to finance the
construction of PROJECT; and
WHEREAS, the cost of the PROJECT has increased from $25.9 million, the
original estimate provided in April 2007, to $59.1 million, the most recent estimate
provided in January 2009, a total cost increase of 128% ; and,
WHEREAS, the City of Burlingame has requested that SBWMA provide cost
saving alternatives to PROJECT and SBWMA has provided no such alternatives as of
this date; and,
WHEREAS, the City of Burlingame has raised serious concerns about the rapidly
escalating costs of PROJECT and has questioned the prudence of such a large borrowing
given the uncertainty of the United States credit markets; and,
WHEREAS, the San Mateo Civil Grand Jury is actively conducting an in-depth
investigation into the operations of the SBWMA and that investigation includes a review
of the proposed financing of the Shoreway Environmental Center project.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF
BURLINGAME DOES HEREBY RESOLVE AND ORDER:
1. That the City of Burlingame opposes SBWMA's issuance of $65.45 million in
revenue obligations to finance the construction of the SBWMA Shoreway Environmental
Center Project or other solid waste facilities.
2. That the City of Burlingame urges other members of the SB WMA to also vote
"No" on the issuance of debt to finance the construction of the SB WMA Shoreway
Environment Center Project.
3. That the City of Burlingame requests that SBWMA immediately provide the
member agencies with information regarding cost-savin�tives to PROJECT.
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Ann Keighran, May r
I, Mary Ellen Kearney, City Clerk of the City of Burlingame, do hereby certify
that the foregoing resolution was introduced at a regular meeting of the City Council
held on the 170' day of February, 2009, and was adopted thereafter by the following vote:
AYES: COUNCILMEMBERS: BAYLOCK, DEAL, KEIGHRAN, NAGEL, WmAHONY
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
ary Elle Kearney, City Clerlc