AgdaPkt 2014-01-13 Interview, Closed and Regular

Browse Search

7.2.C. - Page 2 2008, SBSA has issued two municipal bond sales, received two California Water Control Board State Revolving Fund Loans and opened a Line of Credit (LOC) with a bank in order fund the work. These funds have been expended and money to fund upcoming projects is needed. The need to issue another municipal bond was identified and work with various financial consultants has occurred over the past two years to determine the best means of acquiring the new funding. After the requirements to issue this bond were reviewed, it was discovered that the SBSA is not a known entity in the bond market and the name does not inform potential investors of the location of the entity or of what the entity does. The consultants recommended that SBSA consider changing its name to something that better reflects who it is, what it does and where it is located. The consultants believe that a name that accomplishes those items could potentially save SBSA five (5) or more basis points in the cost of the financing. After researching, reviewing and evaluating potential names, SBSA Manager, under the direction of SBSA Commission, is proposing to change the name of the Authority to "Silicon Valley Clean Water". This name associates the Authority with a very well -known location that is well respected. It also clarifies that the Authority is in the business of clean water, which is the goal of any wastewater treatment plant. Similar naming conventions and re- branding methods have been utilized widely throughout the country in order to gain more respect from the population that was served. The consultants anticipate that the expected savings on the cost of the upcoming bond could be as much as $750,000.00 in interest cost. Accordingly, staff recommends that Council adopt a resolution approving the proposed JPA Amendment VI to change the name of the Authority to "Silicon Valley Clean Water" and the name of the Authority's Commission to "Commission of Silicon Valley Clean Water". ALTERNATIVES Council may choose not to adopt the Resolution Amending the joint exercise of powers agreement thereby denying South Bayside System Authority and Authority's Commission's attempt to change their names by resolution. FISCAL IMPACT Cost associated with the name change includes: Legal work and Administrative items (i.e. letterhead, business cards, signage, logos, web -site updates, etc.). It is estimated that the expected cost to the Authority is $100,000. This activity and expense are not budgeted in the current fiscal year. If the name change is approved by member agencies the savings on upcoming bond interest costs could be $750,000.00.