AgdaPkt 2020-10-26 Joint SA PFA - Laserfiche WebLink

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6.C. - Page 25 of 57 ij��KNN public finance Date: December G, 2019 To: South Bayside Waste Management Authority Joe La Mariana, Executive Director John Mangini, Finance Director From: KNN Public Finance David Brodsly and Melissa Shick Re: Bond Allocation and Defeasance Analvsis You have advised us that the Town of Atherton is considering withdrawing from the South Bayside Waste Management Authority (SBWNLA). No Member Agency has ever requested to withdraw from the Joint Powers Authority. Section 15.1 of the Joint Powers Authority Agreement sets forth the terms and conditions pursuant to which a Member Agency may withdraw from the SB\X'1kLk: i) notice at least six months prior to the end of the rate year; ii) approval of four-fifths (4/5) of the members; and iii) the payment of a proportionate share of the Authority's liabilities. Specifically, Section 15.1(a) states that, prior to its exit, a Member Agency must "achieve... the liquidation in full of its proportion of any and all existing debts, obligations, and liabilities incurred, earned, or expected to be earned by the date of withdrawal, but not limited to the Revenue Bonds, as determined by the Board." The particular method of calculating (and liquidating) a Member Agency's proportional share of any such outstanding obligation is not specified under the Joint Powers Authority Agreement. While there would likely be other obligations and liabilities for which a Member Agency would be responsible, the largest such liability, and the focus of this memo, is likcly to be the outstanding revenue bonds of the SBWMA. \While Atherton has not yet requested information on its obligations and liabilities, you have requested that we calculate the portion of SBk N -L -k's outstanding bond obligations attributable to the Town of Atherton and describes a method for retiring Atherton's proportional share of the bond obligations through a legal defeasance so that this information can be shared with Atherton as it considers whether or not to withdraw from SBWMA. We again emphasize that this memo addresses only that obligation. Bond Allocation Methodology SBWNUVs outstanding bond obligations consist of two series — $31,860,000 Solid Waste Enterprise Refunding Revenue Bonds, Series 2019A (Non -A111-1) and $16,915,000 Solid Waste Enterprise Revenue Bonds, Series 2019B (AMZ) — together, totaling $48,775,000 in outstanding par amount (the Series 2019 Bonds). ■ The Series 2019A Bonds were issued to refund in full the O WNM's Solid Waste Enterprise Revenue Bonds (Shoreway Environmental Center), Series 2009.x, which originally financed the construction of a new scale house, a new materials recovery facility (MRF) to be used for the 1.3011 Chl Street, Suite 101011 I t7akland, (: \ 9-1413 I Alain 5111-H39-H?1111 I Pas 510-20H-H2x2 1451 tluail'Street, Suitc 200 I Newl,nrt lie-aeh, C \ 92660 I Main 949-1346-4900 I Uas SUI-2slrt-x?x'_ 5757 W. Ccntury lioulcvard, tiuitc 700 I Los .\ngcics, CA 90045 I Main 310-34H-3901 I Pay 5111 -211H -H282 SBWMA BOD PACKET 8/20/2020 AGENDA ITEM: 5A ATTACHMENT 2 - pl 56