To: Sonoma County Board of Supervisors
Department or Agency Name(s): Economic Development Board
Staff Name and Phone Number: Ethan Brown - (707) 565-7589
Vote Requirement: Majority
Supervisorial District(s): Second
Title:
Title
Public Hearing: Adoption of Resolution for the Republic Services, Inc. Tax Exempt Bond Financing
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Recommended Action:
Recommended action
Conduct a public hearing and adopt a resolution to approve a tax-exempt bond financing in an amount not to exceed $703,700,000 to be issued by the California Municipal Finance Authority to the benefit of Republic Services, Inc.
(Second District)
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Executive Summary:
This public hearing is being conducted to approve a resolution to authorize the California Municipal Finance Authority (the “CMFA”) to approve a tax exempt bond financing in an amount not to exceed $703,700,000 to be issued to the benefit of the Republic Services, Inc. (the “Borrower”).
Discussion:
The Borrower has requested that the California Municipal Finance Authority (the “CMFA”) issue exempt facility bonds for qualified solid waste disposal facility projects pursuant to section 142(a)(6) of the Internal Revenue Code of 1986 (the “Code”) in one or more series from time to time in an aggregate principal amount not to exceed $703,700,000 (the “Bonds”).
A portion of the proceeds of the Bonds, in a principal amount not expected to exceed $32,700,000, will be used to finance certain capital projects at a facility located in the unincorporated portion of the County of Sonoma (the “County”) at the Sonoma Landfill, 500 Mecham Road, Petaluma, CA 94952, currently owned and/or operated by Republic Services of Sonoma County, Inc., an affiliate of Republic Services, Inc.
The projects to be financed at such facility (collectively, the “Project”) include: (a) improvements to existing landfill facilities, including construction of new disposal cells and liners within currently permitted acreage, (b) additions and improvements to the leachate collection and treatment system, including leachate trenching, (c) additions and improvements to the methane gas systems, (d) installation of new liners for intermittent and final closure of completed sections of the landfill facilities, (e) site improvements, (f) acquisition of equipment to be used at the landfill facilities, and (g) acquisition of other equipment and assets necessary to support the foregoing improvements and to place them into service.
The CMFA is a joint powers agency created to promote economic, cultural and community development, through the financing of economic development and charitable activities throughout California. To date, over 320 municipalities, including the County of Sonoma, have become members of CMFA. In order to initiate a financing, the member participant of the CMFA in which the proposed facilities will be located must (i) conduct a public hearing and (ii) approve the Authority’s issuance of indebtedness. Therefore, although the CMFA will be the issuer of the obligation for the Borrower, the financing cannot proceed without the County of Sonoma’s approval of the financings.
The purpose of the public hearing is to satisfy Federal Internal Revenue Service requirement of the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), that as a condition to issuing bonds, the approval of the elected governmental offices of the jurisdiction where the facility is located be obtained following a public hearing. The hearing allows the public an opportunity to review and make comments regarding the proposed tax exempt financing for the project.
The Board of Supervisors has been requested to hold the hearing for the Project located in the unincorporated community of Petaluma. The Board has conducted similar hearings for entities in Sonoma County, with the most recent being for the West County Health Centers in August 2020.
The Board’s approval of the financing does not in any way pledge the credit or revenues of the County to the financing. County Counsel and Jones Hall (counsel for Authority) have reviewed the financing and agree that it does not pledge County credit or revenues.
Related Documents prepared by Jones Hall, APLC.
Prior Board Actions:
None
Fiscal Summary
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FY 20-21 Adopted |
FY21-22 Projected |
FY 22-23 Projected |
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Narrative Explanation of Fiscal Impacts:
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Narrative Explanation of Staffing Impacts (If Required):
None
Attachments:
Resolution of the Board of Supervisors
Related Items “On File” with the Clerk of the Board:
None