AgdaPkt 2015-10-12 Closed and Joint SA and PFA

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8.B. - Page 1 REPORT To the Honorable Mayor and City Council From the City Manager October 12, 2015 SUBJECT Approval of documents and official actions related to 2015 Silicon Valley Clean Water (SVCW) Wastewater Revenue Bonds and appropriation of City Wastewater Enterprise Funds to address the City's obligation to fund SVCW Capital Improvement Program RECOMMENDATION 1) Adopt a Resolution approving Appendix A to the Preliminary Official Statement, approving the form of the City's Continuing Disclosure Certificate and authorizing designated officials to amend and execute such documents as required relating to the 2015 SVCW Wastewater Revenue Bonds 2) Adopt a Resolution appropriating a cash contribution in the amount of $10 million from the City's Wastewater Enterprise Fund, reducing the City of Redwood City's share of the 2015 SVCW bond funding by this amount BACKGROUND The cities of Belmont, Redwood City and San Carlos and the West Bay Sanitary District entered into an agreement entitled the "Joint Exercise of Powers Agreement — South Bayside System Authority" on November 13, 1975 for the provision of wastewater services. This Joint Exercise of Powers Agreement (JPA) grants the Authority, which has since been renamed Silicon Valley Clean Water (SVCW), legal authority to issue long-term debt and bill each member agency for its share of the indebtedness. In 2008, the SVCW Commission approved a 10-year Capital Improvements Program (CIP) of approximately $400 million (in future dollars) to address critical infrastructure needs of the wastewater treatment facilities, including rehabilitation of the wastewater treatment plant and replacement of the conveyance system including the force main and related pump stations. In 2013 and 2015, SVCW updated its CIP to revise cost estimates and include nutrient removal projects, resulting in a total program of $792 million over a 15-year period. The goal of the SVCW CIP is to return SVCW facilities, originally constructed in the early 1980s, to a condition that ensures continued efficient and effective operation of the treatment and conveyance processes for another 25 to 30 years. To fund its capital plan, SVCW has issued municipal bonds in 2008, 2009 and 2014, obtained California Water Resource Control Board State Revolving Fund (SRF) Loans and opened a line of credit, thus far securing approximately $253 million. On September 10, 2015, the SVCW Commission authorized the issuance of new bonds in an amount Page 1 of 3