AgdaPkt 2019-05-20 Joint SA PFA - Laserfiche WebLink

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8.A. - Page 2 of 73 approximately $236.4 million of the CIP, specifically for the Regional Environmental Sewer Conveyance Upgrade (RESCU) Program, through March 2024. The WIFIA Loan will pay off the 2019 Notes at their maturity. Redwood City is responsible for 48.57 percent of the Authority's capital budget. Redwood City's share of the Authority's unfunded capital budget is approximately $252 million. The 2019 Notes will fund approximately $115 million of this amount. Staff expects that the City will fund its remaining capital obligations to the Authority by participating in future Authority bond issues or loan agreements. The City will additionally borrow its share of interest due on the 2019 Notes and issuance expenses. SVCW has requested that the City of Redwood City consent to SVCW issuing its 2019 Wastewater Revenue Notes, and SVCW entering into a loan agreement with the EPA for the WIFIA Loan. SVCW has also requested that the City approve amendments to the existing Financing Agreement between the City and SVCW and to the Joint Powers Agreement governing SVCW, in order to facilitate the two proposed transactions, and requested that the City authorize the execution of certain documents related to the transactions. SVCW's intent is to sell the 2019 Notes in July 2019 with a balloon payment of all principal at maturity in 2024. The WIFIA Loan is planned to close in June 2019, but will not fund (i.e. provide loan proceeds to SVCW and begin accruing interest) until 2024. At that time, the WIFIA Loan proceeds will be used to make the balloon payment on the 2019 Notes. The WIFIA Loan will then be repaid by SVCW over a period of 31 years. Pursuant to the JPA agreement, 4/5ths of those Members participating in a bond issue must approve the Authority's issuance of such bonds. Once the City Council approves the Resolution (Attachment A) associated with this staff report, no further action on the part of the City Council will be required for SVCW to undertake this transaction. Although the City will not be the issuer of the 2019 Notes or the borrower under the WIFIA Loan, ultimately the City is responsible for paying to SVCW the City's allocable share of debt service (principal and interest) on these obligations. The City's allocable share of principal amount is not to exceed $126.0 million (including capitalized interest) for the WIFIA Loan, and not to exceed $126.0 million for the 2019 Notes. The resolution before the Council tonight will: 1. Consent to the execution and delivery of the WIFIA Loan Agreement and the issuance of the 2019 Notes by the Authority 2. Approve a Ninth Supplement to the Joint Powers Agreement (Attachment B) 3. Approve a Second Amendment to Financing Agreement between the Authority and the City (Attachment C) 4. Deem substantially final the City Portion of Appendix A to the Preliminary Official Statement and certain other portions relating to the City (Attachment D) 5. Approve the form of Continuing Disclosure Certificate to be delivered by the City with respect to the 2019 Notes (Attachment E) 6. Authorize the Mayor, City Manager, Assistant City Manager of Administrative Services, and the City Clerk, or their designees, to execute such necessary closing documents and all actions as required relating to the 2019 Notes and WIFIA Loan. City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org 516