AgdaPkt 2008-09-08 - Laserfiche WebLink

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7A On June 28, 2007 the SBWMA Board approved the facility operations RFP and Page 2 Agreement with a compensation structure to reflect a more common standard industry compensation arrangement based on net operating profit. This change in the operating agreement will require that the Authority's tax-exempt 2000 bonds be replaced by January 2011 with taxable bonds when the new operating agreement becomes effective. Subsequent to the June Board meeting the financing team advised staff that debt sold to fund new construction may be tax-exempt after January 2011, although interest payments received by the investors will be subject to the payment of alternative minimum taxes (AMT). Accordingly, the interest rates on such debt will be higher than non AMT tax-exempt debt but significantly lower than taxable debt. Because more than 25% of the acquisition cost of the transfer station in 2000 was for land, the 2000 bonds do not qualify for refunding with tax-exempt AMT bonds. Between July and October 2007 all twelve member agencies approved the facility RFP documents. The final RFP and Operating Agreement were publicly released to potential proposers on November 1, 2007 and December 1, 2007, respectively. On March 4, 2008 the SBWMA received seven proposals in response to its facility operations RFP. Proposals were received from the foltowing companies: . Allied Waste Services of San Mateo County . Bayside Environmental Services & Transfer Goint venture of Peninsula Sanitary Group, South San Francisco Scavenger Company, Green Waste Recovery and Zanker Road Resource Management) · Greenstar, LLC . Hudson Baylor Corp with Waste Solutions Group . Norcal Waste Systems of San Mateo County · Republic Services, Inc. . South Bay Recycling, LLC (joint venture of Community Recycling & Resource Recovery and Potential Industries) On July 24,2008 the Board approved 10-0 the selection committee recommendation to shortlist Hudson Baylor Corp. and South Bay Recycling for further negotiations. The Board will ultimately select one of these two companies as the facility operator. The final contract to be negotiated with the selected operator will be subject to approval of two- thirds of the member agencies; this item is expected to be brought to member agencies for consideration and action in the spring of 2009. Shoreway project cost estimates based on 40% engineering plans were presented to the Board in June 2008 and the Board approved a resolution 10-0 authorizing the issuance of debt obligations to fund new construction improvements and to refund the SBWMA's 2000 bonds and requesting member agencies to take action to approve the issuance and sale of such debt obligations. Plan of Finance The estimated total cost of Shoreway masterplan improvements, including a new MRF building with single stream recycling equipment, is $59.4 million (see Attachment 3). This figure includes a 10% contingency on top of the estimated project costs (which also include a contingency). Final building costs will be known in January 2009 when Phase