Public Hearing: YES ☐ NO ☒ Department: Public Works - Sanitation
SUBJECT:
Title
Commission District(s): Commission Districts 3 & 6
Seminole Road Landfill Phase 3 Unit 2 Cell Construction (Cells 1 & 2).
Body
Information Contact: Tracy Hutchinson
Phone Number: (404) 294-2177
PURPOSE:
To propose acceptance of Georgia Environmental Finance Authority (GEFA) Loan GF2018006 in the amount of $3,000,000 and authorize the CEO to execute all necessary documents. The County has submitted a Georgia Environmental Finance Authority (GEFA) loan application for funding to support the construction of two cells (19.3 acres) at the Seminole Road Landfill, Phase 3 Unit 2, located in Ellenwood, GA (DeKalb County)
NEED/IMPACT:
The full construction will require a total of $6 million. We recommend borrowing $3million now and an additional $3million in the spring. This is more in line with our cash flow needs and will substantially reduce negative arbitrage. The life of the cell approximates 3 years.
The loan is part of a long term strategy to maximize the benefits of leverage with GEFA: low interest rates; spread out a predictable expense and simultaneously increase Sanitations’ fund balance.
The Seminole Road Landfill is the only disposal site for MSW (Municipal Solid Waste) in the County and new disposal cells are needed. The landfill’s current capacity is projected to be full by May 2020. Cell construction is scheduled to begin in 2019 and estimated to be complete by first quarter 2020 (12 months estimated for cell construction).
FISCAL IMPACT:
The closing cost is $30,000. Interest accrues on funds drawn during construction. After the spend down the loan payment will be approximately $51,600 per month for 5 years.
RECOMMENDATION:
Recommended Action
To approve the resolution and authorize the chief executive officer to execute all necessary documents; approve acceptance of the GEFA loan to construct Cells 1 & 2 of Phase 3, Unit 2 at the Seminole Road Landfill, located in Ellenwood, GA (DeKalb County).