TO: Napa-Vallejo Waste Management Authority Board of Directors
FROM: Chris Celsi, Executive Director
REPORT BY: Chris Celsi, Executive Director
SUBJECT: Resolution authorizing execution and delivery of a loan agreement for the new C&D Building.
RECOMMENDATION
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Approve and adopt a resolution authorizing execution and delivery of a loan agreement to provide funds necessary to construct the new construction and demolition building. [weighted vote]
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EXECUTIVE SUMMARY
KNN Public Finance, LLC ("KNN"), acting as Napa-Vallejo Waste Management Authority's registered municipal advisor, conducted a lender Request for Term Sheet Proposals ("RFP") process to solicit financing proposals for the upcoming Construction & Demolition Recycling Facility project. KNN worked closely with Authority staff and its financing team to draft a RFP document that summarizes the key features of the Authority, the solid waste system, the C&D project, financing structure, and terms and conditions for the 2025 Loan Agreement. The RFP solicited interest rates and terms and conditions for a financing term of 10-years and 15-years from direct purchase lenders.
The RFP was distributed to a total of 28 institutions on August 26, 2025, and an Addendum was circulated to the same group on September 4, 2025. The Addendum provided responses to a number of credit-related questions received from RFP recipients. KNN received 7 responses on September 8, 2025. A summary of the responses is attached to this staff report. Webster National Bank ("Webster") provided the overall lowest fixed tax-exempt interest rates for both financing terms: 3.8% for a 10-year financing term and 4.15% for a 15-year financing term. The Webster proposal also included the following pre-payment options i.) for the 10-year term, the loan is not callable in years 1-5, and then is callable at no premium thereafter, and ii.) for the 15-year term, the loan is not callable in years 1-5, and then is callable at a 1% premium in ...
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