AgdaPkt 2013-05-20 Closed Cancelled and Special

Browse Search

7.A. - Page 1 RE PO RT To the Honorable Mayor and City Council/Public Financing Authority From the Cit Mana er May 20, 2013 SUBJECT Approval by the City Council of the City of Redwood City and the City of Redwood City Public Financing Authority Commission of bond financing documents in connection with the issuance of City of Redwood City Public Financing Authority (PFA) Water Revenue Refunding Bonds RECOMMENDATION Approve, by resolution, authorization for the sale of up to $30,500,000 million of PFA Water Revenue Refunding Bonds, Series 2013 (2013 Bonds) to refinance the PFA Water Revenue Bonds, Series 2005A and approve other related actions necessary in connection with the issuance of the 2013 bonds. BACKGROUND The City purchases all of its potable water supplies from the San Francisco Public Utilities Commission (SFPUC) via the Hetch Hetchy regional water system and its demand for water had consistently exceeded its assured supply of water from the SFPUC. To address this imbalance, the City initiated a water recycling project in 2005. The project consists of water recycling equipment and storage tanks at the South Bayside System Authority treatment facility in Redwood Shores, and distribution pipes, meters and associated infrastructure for irrigation and industrial use by businesses and homeowner associations east of US 101 in and around Redwood Shores and Seaport Boulevard. Bonds were sold in the amounts of $35,790,000 in 2005, $26,000,000 in 2006 and $15,150,000 in 2007 to finance construction of the $73 million project. The 2005 Bonds are approaching their first optional bond redemption date (February 1, 2014), and can be refinanced (or "refunded") with lower interest cost bonds to produce lower debt service payments and aggregate net present value savings. The resolutions before the Council tonight will approve, in substantially final form the following documents: 1. An Installment Purchase Contract (City and PFA); 2. An Indenture of Trust (PFA); 3. A Continuing Disclosure Agreement with the trustee for the 2013 Bonds (City); 4. A Preliminary Official Statement and its distribution (City and PFA); 5. An Official Notice of Sale (City and PFA); and, will authorize all actions specified in the resolution in connection with the issuance of the 2013 Bonds.