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6.2.B. - Page 5 ATTACHMENT 1 <br /> RESOLUTION NO. <br /> RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDWOOD <br /> CITY AUTHORIZING THE MAKING OF A PREPAYMENT UNDER A <br /> WATER SUPPLY AGREEMENT WITH THE CITY AND COUNTY OF <br /> SAN FRANCISCO AND RELATED MATTERS <br /> WHEREAS, the City and County of San Francisco ("San Francisco") and <br /> wholesale water customers of San Francisco in Alameda County, San Mateo County <br /> and Santa Clara County (the "Wholesale Customers"), including the City of Redwood <br /> City (the "City"), have entered into a Water Supply Agreement, dated July 2009 (the <br /> "WSA"), providing for the sale of water by San Francisco to the Wholesale Customers; <br /> and <br /> WHEREAS, the City and other Wholesale Customers are members of the Bay <br /> Area Water Supply and Conservation Agency ("BAWSCA"); and <br /> WHEREAS, pursuant to the terms of the WSA, the cost of water paid by the <br /> Wholesale Customers (including the City) includes a component designed to provide <br /> San Francisco capital cost recovery for existing regional assets ("ERA Payments"); and <br /> WHEREAS, the WSA provides that the Wholesale Customers, acting through <br /> BAWSCA, may prepay the remaining principal balance of the ERA Payments, in whole <br /> or in part; and <br /> WHEREAS, substantial savings over the term of the WSA may be achievable <br /> through the prepayment through BAWSCA (the "Prepayment") of the ERA Payments to <br /> be made by Wholesale Customers participating in such Prepayment (the "Prepayment <br /> Participants"); and <br /> WHEREAS, BAWSCA proposes to finance the Prepayment through an issuance <br /> of revenue bonds (the "Bonds") by BAWSCA; and <br /> WHEREAS, to pay debt service on the Bonds, to maintain required reserves and <br /> to satisfy BAWSCA's other obligations related to the Bonds, BAWSCA will impose <br /> charges on Prepayment Participants, which may be in the form of surcharges on water <br /> sold by San Francisco to Prepayment Participants under the WSA (the "Surcharge"); <br /> and <br /> WHEREAS, the Surcharge is expected to be payable by the Prepayment <br /> Participants to San Francisco (for delivery to BAWSCA) together with the Prepayment <br /> Participants' other payments to San Francisco under the WSA; and <br /> WHEREAS, the issuance of the Bonds and the making of the Prepayment are <br /> subject to a variety of conditions, including a determination by BAWSCA that savings for <br /> Prepayment Participants can be achieved thereby; and <br /> ATTYDOCS-RESO/RES0.2815/AUTHORIZATION FOR THE BAWSCA TO REPAY CITY'S PORTION <br /> REV: 11-29-12 PT <br /> Page 1 of 3 <br />