AgdaPkt 2018-01-22 Joint SA PFA - Laserfiche WebLink

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8.A. - Page 1 REPORT To the Honorable Mayor and City Council From the City Manager January 22, 2018 SUBJECT Approval of documents and official actions related to Silicon Valley Clean Water 2018 Wastewater Revenue Bonds. RECOMMENDATION Adopt a resolution consenting to issuance of Silicon Valley Clean Water 2018 Wastewater Revenue Bonds, deeming final 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 and take other actions as required relating to the Silicon Valley Clean Water 2018 Wastewater Revenue Bonds BACKGROUND Silicon Valley Clean Water (the "Authority") is a joint exercise of powers authority ("JPA") that provides wastewater transmission, treatment, and effluent disposal services to the Cities of Belmont, Redwood City, and San Carlos, and the West Bay Sanitary District (collectively, the "Members"). Under the JPA agreement that created the Authority, the Authority owns and operates certain wastewater facilities and the Members are obligated to pay the Authority for their allocable share of the Authority's operating, maintenance, and capital expenses. Since 2008, the Authority has been rebuilding, rehabilitating, and upgrading its wastewater transmission and treatment facilities, which are approaching the end of their useful operating lives, and has spent approximately $244 million on capital infrastructure and upgrades. Approximately $596 million of additional capital funding is needed over the next eight years. The required capital projects are needed to maintain or replace infrastructure serving existing residents; current wastewater facilities have sufficient capacity to support current and future population growth. The Silicon Valley Clean Water 2018 Wastewater Revenue Bonds (the "2018 Bonds") will fund approximately $148 million of these needs through mid -2019, at which time additional bond funding will be necessary. The City's sewer enterprise will fund all of these future capital obligations to the Authority. Revenues and expenses of the sewer enterprise are accounted for in the Sewer Utility Fund, which is a proprietary fund of the City, separate and distinct from the General Fund. The sewer enterprise provides wastewater collection services to residents and businesses within the City, to five San Mateo County sewer maintenance districts, and a small sewer assessment district that is part of the Town of Woodside.