AgdaPkt 2019-05-06 Joint SA PFA - Laserfiche WebLink

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6.H. - Page 2 of 27 interest rates, a refunding of the 2009A Bonds produces strong present value savings as current borrowing rates, inclusive of transaction expenses, are significantly lower than when the 2009A Bonds were originally issued. Tax law stipulates that the 2009A Bonds must be refunded on a "current" basis (on or after 90 days before the September 1, 2019 call date). As such, the first possible date that the 2009A Bonds can be refunded is June 1, 2019. If refunded on June 1, 2019 as proposed, the outstanding 2009A Bonds would be redeemed with the proceeds of the proposed 2019 Refunding Bonds at their first optional redemption date, September 1, 2019. Based on current market interest rates, a refunding of the 2009A Bonds is estimated to generate approximately $10.0 million in present value savings. The execution of a refunding transaction creates a unique opportunity for SBWMA to raise additional new money proceeds while accessing the capital markets by deploying refunding savings to raise new capital, while also considering the issuance of additional debt. A Bond Refunding Work Plan was approved by the SBWMA Board on September 27, 2018. Table 1 below illustrates the subsequent equipment and financing project review milestones, culminating in the SBWMA Board's approval of the Plan of Finance Approach, as presented at its March 28, 2019 Board Meeting. Table 1 2019 Bond Issuance Milestones Date/Meeting Action Item / Approval September 27, 2018: Board Meeting • Approval — Bond Refunding Work Plan October 3 & 10, 2018: Zero Landfill • Presentation and Discussion — Organics to Energy (02E) Committee Meeting Project and AB1383 November 2, 2018 • Municipal Advisor Request For Quote (RFQ) Issued November 5, 2018: Finance Committee • Discussion — Capital Improvement Projects Meeting November 15, 2018: Board Meeting • Approval — Organics to Energy Pilot Project • Approval — Executive Director to Execute Contract for Municipal Advisor Services January 4, 2019 • Contracted with KNN Public Finance to serve as Municipal Advisor. January 10: Finance Committee Meeting . Discussion — Capital Funding Plan • Presentation — Materials Recovery Facility (MRF) Equipment Upgrades January 24: Board Meeting • Presentation — Financing Objectives and Alternatives February 14: Finance Committee Meeting • Discussion — Plan of Finance • Study Session — MRF Equipment Upgrades City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org 189