AgdaPkt 2015-04-13 Closed and Joint SA and PFA REVISED 04_10_2015

Browse Search

8.A. - Page 3 Bond Documents The bond documents to be approved for the sale of the refunding bonds include an Installment Purchase Contract, Indenture of Trust, Continuing Disclosure Agreement, Official Notice of Sale and Preliminary Official Statement. A summary description of these documents can be found in Attachment 3. The preliminary official statement, which is the primary disclosure document, is of particular importance for legislative body review (Attachment 5). Responsibilities of Elected Officials Under Federal Securities Laws The Preliminary Official Statement has been reviewed and approved for transmittal to the City Council and the PFA's Board of Directors by staff and its financing team. The preliminary official statement must include all facts that would be material to an investor in the 2015 Bonds. Material information is information that there is a substantial likelihood would have actual significance in the deliberations of the reasonable investor when deciding whether to buy or sell the 2015 Bonds. Members of the City Council and the PFA's Board of Directors may review the Preliminary Official Statement and/or question staff and consultants to make sure they feel comfortable that it includes all material facts. The security for the 2015 Bonds is described in the section of the Preliminary Official Statement entitled "SECURITY FOR THE BONDS"; information about the City and its water system is set forth in "THE ENTERPRISE" and "ENTERPRISE FINANCIAL INFORMATION"; the key risk factors associated with the 2015 Bonds are described in the section of the Preliminary Official Statement entitled "RISK FACTORS RELATING TO THE BONDS"; and certain limitations imposed by the California Constitution are described in "CONSTITUTIONAL LIMITATIONS ON APPROPRIATIONS AND FEES." The Redwood City Public Financing Authority The Redwood City Public Financing Authority is a joint powers authority that was formed with two members: the City of Redwood City and the Redwood City Redevelopment Agency. The Redevelopment Agency, like all redevelopment agencies in the state, is going through a statutory wind-down process. At present, the members of the Public Financing Authority are the City and the Successor Agency to the Redevelopment Agency. Pursuant to Health & Safety Code Section 34187(b), the Successor Agency's existence would normally terminate no later than July 15, 2033 (one year after the final maturity of the Successor Agency's bond obligations). The termination of the Successor Agency by action of Health & Safety Code Section 34187(b) would potentially leave the Public Financing authority as a joint powers authority with only a single member. It is not clear that a joint powers authority may operate, under normal circumstances, with only a single member. However, the Public Financing Authority's outstanding Water Revenue Bonds, Series 2007A have a final maturity date of February 1, 2035. These bonds were issued prior to the adoption of Health & Safety Code Section 34187(b). Jones Hall, the City's bond counsel, has advised the City that, as a consequence of Government Code Section 6596—which pledges the state to forgo from taking certain actions that would impair the Water Revenue Bonds, Series 2007A—the legal existence of the Public Financing Authority 3