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6.H. - Page 5 of 27 <br />MRF Estimated Financial Benefit <br />MRF Enhancement Cumulative Financial lbenefit Summar <br />Capital Improvement Cost 15,579,944 <br />Revenue Benefit * 23,112,044 <br />Cost Avoidance Benefit $ 6,529,164 <br />Estimated Revenue & Cost Benefit (through 12 year useful life) $ 29,641,209 <br />Cumulative Financial Benefit $ 14,061,265 <br /># Reveove benelit decrease from Attachment 2 - February SOD Presentation an MRF ProcessIng <br />Equipment Vpgrades due to Poreatiof softening of the €rtgh grade poper morket overtime. <br />Organics -to -Energy — Full -Scale Project ($10.0 million) <br />At its November 2018 Board Meeting, the Board approved the Organics -to -Energy (02E) Pilot Project and <br />recommended funding the full scale 02E project after the 02E pilot project's proof -of -concept is achieved. <br />The 02E Full Scale Project is estimated to be cost neutral; reduced transportation and tip fee costs are <br />expected to be offset by Shoreway processing and equipment costs. Project benefits include an estimated <br />25 to 30 percent reduction in landfill waste (SB1383), significant Greenhouse Gas Emissions reduction as <br />a result of reduced transportation, and reduced commercial organics processing costs. <br />FISCAL IMPACT <br />Current annual debt service on the 2009A Bonds is approximately $4.1 million for the Authority. The 2019 <br />Bonds will raise $20 million of additional proceeds for recycling equipment projects for the <br />Authority. They will be structured to keep debt service at its current level by extending the final bond <br />maturity 6 additional years. Savings attributable to the refunding and the extension of the bond maturity <br />will finance the new equipment. No increase in solid waste collection rates will be necessary, although <br />future collection rates may increase due to other factors. The bonds are secured solely by SBWMA net <br />revenues, which is defined as SBWMA gross revenues less operation and maintenance costs. Members, <br />including Redwood City, have no individual responsibility for any of the SBWMA bond debt service; <br />however, members are required to set solid waste collection rates at levels high enough to pay their pro <br />rata share (based on tonnage delivered) of SBWMA operating costs (including bond debt service), and to <br />require that their solid waste franchisee deliver solid waste collected in their respective jurisdiction to <br />SBWMA. <br />ENVIRONMENTAL REVIEW <br />This activity is not a project under California Environmental Quality Act (CEQA) as defined in CEQA <br />Guidelines, section 15378, because it has no potential for resulting in either a direct or reasonably <br />foreseeable indirect physical change in the environment. <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore <br />192 <br />