Sponsor: Finance
Title
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2021 Solid Waste Facility Bond Ordinance - Waive First Reading
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Recommendation
recommendation
Waive the first reading of the proposed 2021 Solid Waste Facility Bond Ordinance.
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Background
background
This requested action is subject to Ramsey County Board approval of the Recycling & Energy (R&E) Center enhancements financing structure, also being considered by the Board on October 20, 2020.
As previously brought forward and considered by the County Board, the R&E Center enhancement projects financing structure includes the following:
1. Approve the financing structure for the R&E Center enhancements in which the Ramsey County Board shall issue general obligation bonds on behalf of both counties (the “County Bonds”)in an amount not to exceed $43 million to fund the aggregate County Enhancement Loan (“County Enhancement Loans”) amount for the R&E Center enhancement and in which Ramsey and Washington counties shall each loan a proportionate share to the R&E Board sufficient to cover its share of total financing, including all financing costs, for the R&E Center enhancements, according to the percentages set forth in the joint powers agreement: Ramsey County - 73%, Washington County - 27%.
2. Agree to enter into an agreement with Washington County in which Ramsey County will issue bonds on behalf of both counties, and that Washington County shall provide its general obligation pledge to Ramsey County for its share of the financing and pay its share of the total financing of the R&E Center Enhancements through its loan agreement with the R&E Board, and authorizes the Chair to approve and execute such agreement, upon approval as to form by the County Attorney
3. Agree to enter into a loan agreement with the R&E Board in which Ramsey County shall loan its proportionate amount of the County Loans and the R&E Board shall be obligated to and is hereby authorized to repay the County Enhancements Loans from facility revenues, CEC funds and other available revenues on terms and conditions that match, or are otherwise consistent with, any terms and conditions of any other loans outstanding and owed to the counties, and additional covenants required by the counties and the County Bonds issued to fund R&E Board’s County Enhancements Loans.
4. Authorize the Chair and Chief Clerk to execute the agreements upon approval as to form by the County Attorney’s Office and Finance.
The two R&E Center enhancement projects, a durable compostable bag processing system and a recyclables recovery system are estimated to cost $19,286,450 and $23,575,000 respectively, for a total estimated cost of $42,861,450. To allow for small adjustments and costs of issuance, the proposed 2021 Solid Waste Facility Bond Ordinance sets the maximum amount of bonding at $43,000,000. The actual amount may be less, and cannot be more, and will be determined by the County Board at a later date.
This requested action begins Ramsey County’s bond issuance process as part of the R&E Center enhancements financing structure. It is the first action in the County’s Ordinance procedures as required by the County Charter to issue bonds. County Ordinance procedures require that every proposed Ordinance receive two readings; first, at the time it is presented, and second, at the time of the public hearing. Both readings may be waived if a copy of the Ordinance is supplied to each member of the County Board prior to its introduction.
In accordance with these requirements, the first reading of the proposed 2021 Solid Waste Facility Bond Ordinance may be waived because a copy of the proposed Ordinance was supplied to each member of the County Board prior to its introduction on October 20, 2020.
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County Goals (Check those advanced by Action)
☐ Well-being ☐ Prosperity ☐ Opportunity ☒ Accountability
Racial Equity Impact
This action by itself does not have a measurable racial equity impact, as the action is just one step in the ordinance process required by the County Charter to issue bonds. The County issues bonds to finance numerous capital improvement projects, each of which provides programs and services to the community. The racial equity impact is considered by the County departments during the development of the associated programs and services for each capital project.
Community Participation Level and Impact
The bonds issued by Ramsey County pursuant to this proposed ordinance will be joint obligations of Ramsey and Washington Counties, with the proceeds loaned to Ramsey/Washington Recycling and Energy Board for enhancements to the R&E Center. The enhancements are the result of policy direction in the two county solid waste management master plans. Preparation of the Ramsey County plan included significant community engagement, as did the purchase of the R&E Center and discussion about the enhancements. The County Board also holds a public hearing as part of the Bond Ordinance process to afford the public an opportunity to comment on this proposed project.
☒ Inform ☒ Consult ☒ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
The proposed 2021 Solid Waste Facility Bond Ordinance authorizes a maximum amount of $43 million of bond issuance to finance the R&E Center enhancement loans. The actual amount of bonding may be less and the final bonding amount will be determined and considered by the County Board at a later date. The County expects to receive loan payments from the R&E Board and Washington County equal to the required debt service on the County Bonds resulting in no cost to Ramsey County. The expected term of the loans and bonds is 25 years.
County Manager Comments
The Ramsey County Home Rule Charter requires that every ordinance have two readings and a public hearing. Bond financing aligns with the County’s Opportunity and Prosperity goals by facilitating strategic capital investments which cultivate economic development and prosperity in the community.
Last Previous Action
None.
Attachments
1.Proposed 2021 Solid Waste Facility Bond Ordinance
2.Proposed Schedule of Events - 2021 Solid Waste Facility Bond Sale
3.RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $19,475,000 GENERAL OBLIGATION CAPITAL IMPROVEMENT PLAN REFUNDING BONDS, SERIES 2020A 4. RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $28,030,000 TAXABLE GENERAL OBLIGATION REFUNDING BONDS, SERIES 2020B