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<br />REPORT <br /> <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />To the Honorable Chairman of the Board <br />Of the Public Financing Authority <br />From the Executive Director and Ci Mana er <br /> <br />January 24, 2005 <br /> <br />Subject <br />Approval by the City Council of the City of Redwood City and the City of Redwood City <br />Public Financing Authority Board of Directors of bond financing documents in <br />connection with the issuance of City of Redwood City Public Financing Authority (the <br />"PF An) Water Revenue Bonds. <br /> <br />Recommendation <br />In connection with the sale of not more than $36 million PFA Water Revenue Bonds to <br />finance water recycling project expenditures projected to be made over the next 12 <br />months and to reimburse the water fund for capital appropriations previously made in <br />connection with this project, adopt a resolution approving, in substantially final form: <br /> <br />. An Installment Purchase Contract (City and PFA); <br />. An Indenture of Trust (PFA); <br />. A Continuing Disclosure Agreement with the trustee for the 2005 Bonds (City); <br />. A Preliminary Official Statement and its distribution (City and PFA); <br />. An Official Notice of Sale (City and PFA); and, <br /> <br />authorizing all actions specified in the resolution in connection with the issuance of the <br />Water Reven ue Bonds. <br /> <br />. Background <br />Earlier this evening, the City Council approved the Water Financing Plan - 2004 Update <br />for the recycled water project and authorized staff to proceed with the arrangements to <br />secure financing for this project (this plan update was initially presented to Council at <br />the December 13, 2004 Council meeting). The plan allocates project capacity between <br />existing water customers and future new development. The City Council has not yet <br />determined the methodology for assessing capacity or facilities fees on future new <br />development, so it is not known when and how fee revenues will affect project financing <br />requirements after the first incremental financing occurs. <br /> <br />The first financing, which is expected to occur in February 2005, will provide <br />approximately $24.4 million for water recycling project expenditures to be made by the <br />City over the next 12 months, $8.3 million for reimbursements to the water operating <br />fund for capital appropriations made to date on behalf of the water recycling project and <br /> <br />..-.... , <br />