Agda Pkt 2024.08.26 Regular Meeting

Browse Search

2 defined in the 2013 Indenture) and the Reserve Fund (as defined in the 2013 Indenture) or reserve fund established with respect to Parity Obligations (as defined in the 2013 Indenture), is sufficient to pay such unpaid 2013 Installment Payments, including the principal and interest components thereof, in accordance with the 2013 Installment Payment schedule, or (ii) non- callable Federal Securities (as defined in the 2013 Indenture) or pre-refunded non-callable municipal obligations rated “AAA” and “Aaa” by S&P and Moody’s, respectively, together with cash if required, in such amount as will, in the opinion of nationally-recognized bond counsel and of an independent certified public accountant, together with interest to accrue thereon and, if required, all or a portion of moneys or non-callable Federal Securities then on deposit in the Payment Fund and Reserve Fund or reserve fund established with respect to Parity Obligations, be fully sufficient to pay such unpaid 2013 Installment Payments on their payment dates so that such 2013 Installment Payments shall be defeased as provided for in the 2013 Indenture. If the City makes a security deposit under Section 6.03 for all or a portion of the 2013 Installment Payments, all obligations of the City under the 2013 Installment Purchase Contract will cease and terminate, excepting only the obligation of the City to make, or cause to be made, all 2013 Installment Payments from the deposit made by the City pursuant to Section 6.03 and the obligations to pay amounts due the Trustee. 7. The 2013 Bonds maturing on or after February 1, 2024 are subject to optional redemption, in whole or in part, on any date on or after February 1, 2023, at a redemption price equal to 100% of the principal amount of the 2013 Bonds to be redeemed, plus accrued interest to the redemption date, without premium. 8. Under Article IX of the 2013 Indenture, the Authority may discharge its liability with respect to the 2013 Bonds by depositing money or non-callable Federal Securities (as defined in the 2013 Indenture) with the 2013 Trustee which, in the opinion of an Independent Accountant (as defined in the 2013 Indenture), will be sufficient to pay the principal, interest and premium (if any) on such 2013 Bonds when due for optional redemption. 9. Under current municipal bond market conditions, it is possible for the City to refinance on a tax-exempt the 2013 Installment Payments and to cause a redemption of the 2013 Bonds for the purpose of achieving savings for the benefit of the customers of the Enterprise. 10. In order to refinance the 2013 Installment Payments and to cause the redemption of the 2013 Bonds, the Authority and the City have entered into an Installment Purchase Contract dated as of _____ 1, 2024 (the “Installment Purchase Contract”), under which the City will sell the Project to the Authority and the Authority will sell the Project to the City in consideration of the agreement by the City to pay the purchase price thereof in semiannual installment payments. 11. For the purpose of obtaining funds to refinance the 2013 Installment Payments and to cause the redemption of the 2013 Bonds, the Authority is issuing its City of Redwood City Public Financing Authority Water Revenue Refunding Bonds, Series 2024 in the aggregate principal amount of $_________ (the “Refunding Bonds”) under an Indenture of Trust, dated as of _______ 1, 2024 (the “Refunding Bonds Indenture”), by and between the Authority and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”) and under the provisions of Article 4 of Chapter 5, Division 7, Title 1 of the Government Code of the State of California, commencing with Section 6584 of said Code (the “Bond Law”). 8.A. - Page 242 of 255 870