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7.1.F. - Page 3 <br /> As such, the proposed amendment would revise the definition of Bonds in Appendix A <br /> of the Financing Agreement to exclude financing secured directly by SBSA, such as the <br /> funding obtained through the SRF financing program. This will eliminate the obligation <br /> of the City's sewer utility to meet debt service coverage and other financial requirements <br /> related to SBSA's SRF loans. The City will still be responsible for paying its allocable <br /> share of costs to SBSA for SBSA's SRF loans pursuant to the JPA, but the City will not <br /> be obligated to raise its sewer rates and charges to meet debt service coverage <br /> requirements for the City's share of repayment of SBSA's SRF loans. <br /> The amendment also clarifies the different types of payments made by Redwood City to <br /> SBSA under the Financing Agreement. Under the Financing Agreement, payments to <br /> SBSA for operations have a higher priority of payment than other payments to SBSA for <br /> non-operating expenses such as debt repayment on SRF loans and capital <br /> improvements. <br /> The filing obligations under the Continuing Disclosure Certificate track the obligations <br /> the City has already undertaken with respect to the SBSA's 2008 and 2009 bond <br /> issues. <br /> ALTERNATIVES <br /> Council may choose not to approve the resolution approving documents and official <br /> actions relating to the issuance of Silicon Valley Clean Water 2014 wastewater revenue <br /> bonds. <br /> Council may choose not to authorize the Amendment to the Financing Agreement. <br /> FISCAL IMPACT <br /> Staff anticipates that the issuance of the 2014 Bonds by SVCW will increase Redwood <br /> City's yearly obligations by $3 million. In part, due to these anticipated future obligations <br /> to the SVCW CIP, City Council approved a 9% sewer rate increase for each of the next <br /> three fiscal years — 2013/14, 2014/15, and 2015/16. The 9% increase amounts to an <br /> increase of $5.21 per month in year one, $5.68 per month in year two, and $6.18 per <br /> month in year three for residential customers. <br /> ENVIRONMENTAL REVIEW <br /> The City of Redwood City has determined that this report does not propose any <br /> action(s) at this time that constitute a project as defined by the California Environmental <br /> Quality Act (CEQA). <br /> ADRIAN LEE <br /> MANAGEMENT ANALYST <br /> Page 3 of 4 <br />