Laserfiche WebLink
-2- <br />stations located inside the City and County of San Francisco. In 2009, the SFPUC and the <br />Wholesale Customers entered into a Water Supply Agreement (the “WSA”) that replaced a <br />prior agreement entered into in 1984. The WSA has a 25-year term (with provisions for two <br />conditional five-year extensions). The City currently receives all of its potable water from the <br />Regional Water System. See “THE ENTERPRISE” and APPENDIX A—GENERAL <br />INFORMATION ABOUT THE CITY OF REDWOOD CITY AND SAN MATEO COUNTY. <br /> <br />Authority for Issuance of the Bonds <br /> <br />The Bonds are being issued pursuant to (i) the laws of the State of California (the <br />“State”), including the Marks-Roos Local Bond Pooling Act of 1985, constituting Article 4, <br />Chapter 5, Division 7, Title 1 (commencing with Section 6584) of the California Government <br />Code, as amended (the “Bond Law”), (ii) the Indenture, (iii) a resolution adopted by the <br />Governing Board of the Authority on January 23, 2017, and (iv) a resolution adopted by the City <br />Council of the City on January 23, 2017. <br /> <br />Purpose of the Bonds <br /> <br />The Bonds are being issued to (a) refund, on a current basis, the Authority’s outstanding <br />City of Redwood City Public Financing Authority Water Revenue Bonds, Series 2007A (the <br />“2007 Bonds”) and (b) pay the costs of issuance of the Bonds. See “THE FINANCING PLAN.” <br /> <br />Security and Source of Repayment <br /> <br />The City will secure its obligation to pay 2017 Installment Payments with its pledge of <br />all of the “Net Revenues” of the Enterprise, defined generally as all gross income and receipts <br />derived by the City from the ownership and operation of the Enterprise, less operation and <br />maintenance costs. The Bonds are also secured by amounts held in any fund or account <br />established under the Indenture (other than the Project Fund and the Rebate Fund). See <br />“SECURITY FOR THE BONDS.” A reserve fund will not be established for the Bonds. <br /> <br />The City’s pledge of Net Revenues as security for its obligation to make the 2017 <br />Installment Payments is on a parity with its pledge of Net Revenues as security for certain other <br />obligations of the City. See “Outstanding Enterprise Debt” below. <br /> <br />Outstanding Enterprise Debt <br /> <br />The City’s pledge of Net Revenues as security for its obligation to make the 2017 <br />Installment Payments under the 2017 Installment Purchase Contract is on a parity with its <br />pledge of Net Revenues as security for (i) its obligation to make installment payments (the <br />“2013 Installment Payments”) under an Installment Purchase Contract (the “2013 Installment <br />Purchase Contract”) entered into in connection with the issuance of the Authority’s Water <br />Revenue Bonds, Series 2013 (the “2013 Bonds”), and (ii) its obligation to make installment <br />payments (the “2015 Installment Payments”) under an Installment Purchase Contract (the “2015 <br />Installment Purchase Contract”) entered into in connection with the issuance of the Authority’s <br />Water Refunding Revenue Bonds, Series 2015 (the “2015 Bonds”). <br /> <br />Future Parity Obligations <br /> <br />The 2017 Installment Purchase Contract, the 2015 Installment Purchase Contract and the <br />2013 Installment Purchase Contract permit the City to issue bonds or incur other obligations <br />payable from and secured by a pledge of and lien upon any of the Net Revenues on a parity <br />with the 2017 Installment Payments, the 2015 Installment Payments and the 2013 Installment <br />8.C. - Page 27