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551 F=2 . <br /> • Disinfec�ion iaddty consisting of new chlorine contact chamber at the SBSA site <br /> - owned by Redwood City, operated by SBSA <br /> • S�Eorage and pumping tadlltles located inside the SBSA plant property (includes <br /> a back-up supply line for potable water) - owned and operated by Redwood City <br /> • Dlstrlbutlon sys�bem consisting of new transmission pipelines throughout the <br /> water service area, in street right-of-ways - owned and operated by Redwood <br /> City <br /> • Cusbomer sfle retr+alf�s for each existing private or public site with a landscape <br /> irrigation meter. Retrofits will occur as each property owner has agreed to <br /> convert to recycled water for landscape irrigation and industrial uses. <br /> If approved by Council, staff expects the project to be financed in multiple phases <br /> through 2010. The first phase of the financing, which is expected to occur in February <br /> 2005, will provide $25 million for the construction of treatment improvements, <br /> disinfection facility, and storage/pumping facilities that will be situated on property <br /> leased from the South Bayside System Authority. <br /> It is recommended that the PFA sell these bonds on behalf of the City. Under state law <br /> the PFA may sell bonds on behalf of the City and then transfer the proceeds of the bond <br /> sale to the City via an installment sale agreement. <br /> The recommended financing team consists of the same firms that assisted in the <br /> issuance of the bonds by the City and Redevelopment Agency in 2003. Staff was very � <br /> pleased with the timeliness and quality of the services each firm provided. Moreover, <br /> staff continues to be pleased with the support that these firms have been providing <br /> since the bonds were sold and strongly recommends working with these firms on this <br /> bond sale. The attachment contains a description of the responsibilities of the <br /> respective members of the financing team. Since these bonds will be sold <br /> competitively, the Council does not need to appoint an underwriter to purchase and sell <br /> these bonds on behalf of the City. <br /> William Euphrat, the proposed financial advisor, has reviewed the proposals submitted <br /> from bond counsel and disclosure counsel and finds their proposed fees competitive <br /> with the market rates for these services. The Finance Director has reviewed Mr. <br /> EuphraYs proposal and finds his proposed fees in line with fees the City has paid him <br /> for past bond issues and consistent with the level of complexity of this bond sale. <br /> Alberr�ativ�e - <br /> The PFA Board may reject staff's recommendation to engage these firms to provide the <br /> professional services needed to successfully sell bonds for this project. Staff will need <br /> to obtain proposals from other firms since staff does not have the expertise to perform <br /> these functions. Obtaining proposals from other firms will delay the issuance of bonds <br /> by up to two months without any guarantee that staff will be able to identify firms that <br /> can provide comparable services at less cost. <br /> 2 <br />