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8.A. - Page 1 <br /> REPORT <br /> To the Honorable Mayor and City Council <br /> From the City Manager <br /> April 13, 2015 <br /> SUBJECT <br /> City of Redwood City Public Financing Authority Water Revenue Refunding Bonds <br /> RECOMMENDATION <br /> Adopt resolutions authorizing the City of Redwood City and the Redwood City Public <br /> Financing Authority (PFA) to sell not more than $21 ,055,000 million PFA Water <br /> Revenue Refunding Bonds, Series 2015 (2015 Bonds) to refinance the PFA Water <br /> Revenue Bonds, Series 2006A and approve all other related actions necessary in <br /> connection with the issuance of the 2015 Bonds. <br /> BACKGROUND <br /> The City purchases all of its potable water supplies from the San Francisco Public <br /> Utilities Commission (SFPUC) via the Hetch Hetchy regional water system. Prior to <br /> 2005 the City's demand for water consistently exceeded its assured supply of water <br /> from the SFPUC. To address this imbalance, the City initiated a water recycling project <br /> in 2005. The project consists of water recycling equipment and storage tanks at the <br /> Silicon Valley Clean Water Authority (formerly, South Bayside Sewer Authority, or <br /> SBSA) treatment facility in Redwood Shores, and distribution pipes, meters and <br /> associated infrastructure for irrigation and industrial use by businesses and homeowner <br /> associations east of US 101 in and around Redwood Shores and Seaport Boulevard. <br /> Bonds were sold by the Redwood City Public Financing Authority (PFA or Authority) in <br /> the amounts of $35,790,000 in 2005 (2005 Bonds), $26,000,000 in 2006 (2006 Bonds) <br /> and $15,150,000 in 2007 (2007 Bonds) to finance construction of the $73 million <br /> project. The 2005 Bonds were refunded in 2013. The 2006 Bonds can be refinanced <br /> (or "refunded") with lower interest cost bonds to produce lower debt service payments <br /> and aggregate net present value savings. The 2006 Bonds will have an outstanding <br /> balance of $20,705,000 at the proposed time of refinancing. <br /> On January 23, 2015 staff presented the potential to refinance these bonds to the <br /> Council Finance Committee, which authorized staff to arrange a refinancing of the <br /> bonds. The City Council subsequently authorized the retention of financing <br /> professionals on February 9, 2015. Staff has retained the financing team of William <br /> Euphrat Municipal Finance, Inc. as municipal advisor, Jones Hall as bond counsel, and <br /> Quint and Thimmig as disclosure counsel. <br /> The resolutions before the Council tonight will approve, in substantially final form, the <br /> following bond documents, which will authorize all actions in connection with the <br /> issuance of the 2015 Bonds: <br /> 1 <br />