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HomeMy WebLinkAboutReso - CC - 055-2009RESOLUTION NO. 55-2009 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME APPROVING A REVISED FINANCING PLAN OF THE SOUTH BAYSIDE WASTE MANAGEMENT AUTHORITY TO FINANCE THE CONSTRUCTION OF THE SHOREWAY ENVIRONMENTAL CENTER; APPROVING THE ISSUANCE OF $56.5 MILLION IN SOLID WASTE ENTERPRISE REVENUE BONDS AND AUTHORIZING THE CITY TREASURER TO ENTER INTO A USE OF FUNDS AGREEMENT IN THE AMOUNT OF $3 MILLION FOR A FIVE YEAR PERIOD 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, 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 solid waste enterprise revenue bonds to finance the construction of PROJECT; and WHEREAS, the City of Burlingame originally opposed the financing plan for PROJECT as being unnecessarily costly; and WHEREAS, after review and discussion with SBWMA staff, other agencies and the SBWMA financing team, SBWMA has revised its plan to finance the cost of the PROJECT by reducing the new bond issuance to the amount of $56.5 million, eliminating the issuance of variable rate bonds, and borrowing $10 million from the member agencies in the form of subordinate revenue bonds, maturing in 5 years rather than 25 years; and WHEREAS, as part of this revised financing plan, the City of Burlingame will loan SBWMA $3 million of the $10 million borrowed from the SBWMA members, for a period of five years, secured by $3 million in solid waste enterprise subordinate revenue bonds; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BURLINGAME DOES HEREBY RESOLVE AND ORDER AS FOLLOWS: 1. The City Council of the City of Burlingame approves SBWMA's revised financing plan for the construction of the SBWMA Shoreway Environmental Center Project; the financing plan includes a general issuance of $56.5 million in solid waste revenue bonds generally and a specific issuance of $10 million in solid waste subordinate revenue bonds to member agencies, including $3 million to the City of Burlingame. 2. The City Council of the City of Burlingame authorizes the City Treasurer to enter into a use of funds agreement with SBWMA in an amount not to exceed $3 million, to be secured by solid waste subordinate revenue bonds, as part of the financing plan for the construction of the SBWMA Shoreway Environmental Center Project. ojtk7;0vw` Ann Keighran, Mayor 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 15'h day of June, 2009, and was adopted thereafter by the following vote: AYES: Councilmembers: NOES: Councilmembers: ABSENT: Councilmembers: l Mary 41enKeaJey , City Clerk