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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
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County Counsel
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DATE:
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January 16, 2007
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BOARD MEETING DATE:
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February 6, 2007
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SPECIAL NOTICE/HEARING:
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14 day newspaper notice
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VOTE REQUIRED:
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Majority
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TO:
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Honorable Board of Supervisors
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FROM:
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County Counsel
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SUBJECT:
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(1) Adoption of Resolution Authorizing the President of the Board to Sign an Agreement to Join the California Municipal Finance Authority; (2) Hearing Under the Tax Equity and Fiscal Responsibility Act (“TEFRA”) Regarding Issuance of $250,000,000 of Tax-Exempt Conduit Bonds to Finance Facility Improvements and Equipment Purchase by Allied Waste North America, Inc., Approximately $11,700,000 of Which Will be Spent on Improvements at the Ox Mountain Facility and (3) Adoption of Resolution Approving the Financing
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RECOMMENDATION:
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(1) Adopt a resolution authorizing the President of the Board to sign an agreement to join the California Municipal Finance Authority; (2) Conduct a Hearing Under the Tax Equity and Fiscal Responsibility Act (“TEFRA”) regarding Issuance of $250,000,000 of Tax-Exempt Conduit Bonds to finance facility improvements and equipment purchase by Allied Waste North America, Inc., approximately $11,700,000 of which will be spent on improvements at the Ox Mountain Facility and (3) Adopt a resolution approving the financing.
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VISION ALIGNMENT:
Commitment: Responsive, effective and collaborative government.
Goal(s): County decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain.
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BACKGROUND:
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The California Municipal Finance Authority (“CMFA”), a joint powers authority comprised of cities and counties in California, proposes to issue $250,000,000 in private activity municipal bonds, on a statewide basis, for the purpose of financing facilities improvements and equipment acquisition by Allied Waste North America, Inc. (“Allied”) or an affiliate of Allied. Approximately $11,700,000 is earmarked to finance improvements at the Ox Mountain Landfill facility.
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DISCUSSION:
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In order to use the proceeds of such bonds in San Mateo County, the following actions are required:
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1.
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The Board must join the CMFA as an associate member in order to authorize issuance of the bonds.
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2.
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The Board of Supervisors must hold a public hearing, in accordance with the Tax Equity and Fiscal Responsibility Act (TEFRA).
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3.
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The Board must adopt a resolution approving the financing, and authorizing bonds to be issued to finance the facility improvements and equipment purchases proposed by Allied.
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A Notice of Public Hearing was published in the San Mateo County Times on January 23, 2007, all interested persons that a public hearing would be held on February 6, 2007 by the County for the purpose of approving the financing.
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FISCAL IMPACT:
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There will be no fiscal impact to the County associated with any action the County takes. The agreement by which the County joins the CMFA contains a provision specifying that any bonds issued by CFMA are special obligations of CFMA, and that the County will have no obligation to pay on any bonds that are issued.
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