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7.B. - Page 1 of 11 <br />/<�ik <br />Redwood <br />CitylCallifornia <br />FOUFWed 1207 <br />A,&/ <br />DATE: October 26, 2020 <br />SUBJECT <br />STAFF REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br />Amendment No. 3 to the City's Financing Agreement in connection with a Water Infrastructure Finance <br />and Innovation Act loan ("WIFIA Loan") by and between Silicon Valley Clean Water and the United States <br />Environmental Protection Agency ("EPA") <br />RECOMMENDATION <br />Adopt a resolution authorizing the third amendment of a financing agreement with Silicon Valley Clean <br />Water to implement a reduced interest rate on an existing WIFIA loan from the Environmental Protection <br />Agency. <br />STRATEGIC PLAN GUIDING PRINCIPLE <br />Excellence in Government Operations <br />BACKGROUND <br />Silicon Valley Clean Water ("SVCW") is amidst a $554 million infrastructure improvement project, the <br />Regional Environmental Sewer Conveyance Upgrade ("RESCU"), which includes pump station <br />rehabilitation as well as a new gravity pipeline and front -of -plant pretreatment facility. In July 2019 SVCW <br />executed a $218 million WIFIA Loan with the EPA which, jointly with the issuance of 2019 Interim Notes <br />(the "Notes"), financed the past 14 months of RESCU construction. In connection with the WIFIA Loan, <br />the City executed a second amendment to the Financing Agreement. The WIFIA program sets its interest <br />rate based on the U.S. Treasury rate on the date of loan closing which, in July 2019, was 2.40%. In <br />September 2020, EPA notified SVCW that its request to re -set the interest rate on the WIFIA Loan was <br />accepted. As part of resetting the interest rate on the WIFIA loan, a third amendment to the financing <br />agreement is required. <br />Page 1 of 4 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org <br />359 <br />