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Page 4 of 6 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org <br />Bond Documents: The bond documents to be approved for the sale of the refunding bonds include an <br />Installment Purchase Contract, Indenture of Trust, Continuing Disclosure Certificate, a form of Bond <br />Purchase Agreement, a Preliminary Official Statement and an Escrow Deposit and Trust Agreement. A <br />summary description of these documents can be found in Attachment A. The preliminary official <br />statement, which is the primary disclosure document and is included as Attachment D, is of particular <br />importance for legislative body review. <br />Responsibilities of Elected Officials Under Federal Securities Laws: The preliminary official statement has <br />been reviewed and approved for transmittal to the City Council and the PFA’s Board by staff and its <br />financing team. The preliminary official statement must include all facts that would be material to an <br />investor in the 2024 Bonds. Material information is information that would have a substantial likelihood <br />of actual significance in the deliberations of a reasonable investor in deciding whether to buy or sell the <br />2024 Bonds. Members of the City Council and the PFA’s Board should review the preliminary official <br />statement and may question staff and consultants to make sure members feel comfortable that it includes <br />all material facts. <br />The security for the 2024 Bonds is described in the section of the preliminary official statement entitled <br />“SECURITY AND SOURCES OF PAYMENT FOR THE BONDS”; information about the City and its water system <br />is set forth in “THE ENTERPRISE” and “ENTERPRISE FINANCIAL INFORMATION”; the key risk factors <br />associated with the 2024 Bonds and certain limitations imposed by the California Constitution are <br />described in the section of the preliminary official statement entitled “RISK FACTORS.” <br />The City has adopted Debt Disclosure Policies and Procedures (Resolution No. 15766; May 20, 2019) to <br />facilitate compliance with federal securities laws. The Policies and Procedures require training for <br />members of the City Council about their responsibilities under federal securities laws, and the City <br />Attorney has distributed to members of the City Council a memorandum about those responsibilities from <br />the City’s bond counsel and provided an opportunity for members of the City Council to meet with City <br />staff and bond counsel to discuss the memorandum and ask questions. <br />EQUITY IMPACT STATEMENT <br />N/A <br />FISCAL IMPACT <br />This issuance of the 2024 Bonds to refund the 2013 Bonds is projected to reduce debt service paid by the <br />City by approximately $177,000 per year, which Public Works intends to use to offset inflationary <br />increases in operating costs. The final maturity of the 2024 Bonds is February 1, 2034. <br />Savings could decline to below the 3% minimum savings threshold. If the bond sale is delayed, certain <br />issuance expenses, such as the bond ratings, are not contingent on the sale of the 2024 Bonds and must <br />8.A. - Page 4 of 255 <br />632