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Page 2 of 6 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org <br />Clean Water Authority (SVCW) treatment facility in Redwood Shores, and distribution pipes, meters, and <br />associated infrastructure for irrigation and industrial use by businesses and homeowner associations east <br />of US 101 in and around Redwood Shores and Seaport Boulevard. Bonds were sold in the amounts of <br />$35,790,000 in 2005, $26,000,000 in 2006, and $15,150,000 in 2007 to finance construction of the $72 <br />million project. The 2005 Bonds were refinanced (or “refunded”) with the lower cost 2013 Bonds in June <br />2013, the 2006 Bonds were refunded in May 2015 and the 2007 Bonds were refunded in 2017. <br />The 2013 Bonds can be efficiently refunded with lower interest cost bonds to produce lower debt service <br />payments and aggregate net present value (NPV) savings. The 2013 bonds will have an outstanding <br />balance in the amount of $15,915,000 at the time of refinancing. <br />Staff has retained the financing team of William Euphrat Municipal Finance, Inc. as municipal advisor, <br />Stifel Nicolaus & Company, Incorporated (Stifel), as underwriter, and Jones Hall as bond counsel and <br />disclosure counsel to assist with this transaction. <br />The resolutions before the Council tonight will approve, in substantially final form, the following bond <br />documents in connection with the issuance of the 2024 bonds: <br />1. An Installment Purchase Contract (City and PFA); <br />2. An Indenture of Trust (PFA); <br />3. A Continuing Disclosure Certificate, which will be accepted by the trustee for the 2024 Bonds <br />in its capacity as dissemination agent (City); <br />4. A Preliminary Official Statement and its distribution (City and PFA); <br />5. A form of Bond Purchase Agreement (the City and PFA); and <br />6. An Escrow Deposit and Trust Agreement (City and PFA). <br />The PFA will issue the 2024 Bonds, and the terms of the 2024 Bonds will be set forth in the Indenture of <br />Trust between the PFA and U.S. Bank Trust Company, which will act as trustee for the owners of the 2024 <br />Bonds. The 2024 Bonds will be payable from installment payments made by the City to the PFA under the <br />Installment Purchase Contract between the City and the PFA; the City will make these installment <br />payments from net revenues of the City’s water enterprise. The Bonds will be marketed to potential <br />investors by Stifel using the Preliminary Official Statement, which describes material facts about the 2024 <br />Bonds and the City’s water enterprise. Once Stifel has determined the market for the 2024 Bonds, in <br />consultation with the City’s municipal advisor and City staff, the terms of the 2024 Bonds (maturity dates, <br />principal amounts, interest rates) will be inserted in the Bond Purchase Agreement, and it will be executed <br />by the City, the PFA and Stifel. Stifel will commit to purchasing all the 2024 Bonds if certain closing <br />conditions detailed in the Bond Purchase Agreement are satisfied. A final Official Statement, which will be <br />the same as the Preliminary Official Statement with the addition of the final bond terms, will be circulated <br />to investors and the City will commit to provide ongoing financial and operating data about the water <br />enterprise and the 2024 Bonds by executing the Continuing Disclosure Certificate. To accomplish the <br />refunding of the 2013 Bonds, net proceeds of the 2024 Bonds will be deposited with U.S. Bank Trust <br />Company under the Escrow Deposit and Trust Agreement. <br />8.A. - Page 2 of 255 <br />630