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HomeMy WebLinkAboutRESO 9304Resolution No. 9304 Resolution ofthe City Council of the City of Palo Alto Authorizing the Making of a Prepayment Under the City's Water Supply Agreement with the City and County of San Francisco and Authorizing the City's Participation in a Bond Issuance by the Bay Area Water Supply and Conservation Agency to Finance the Prepayment RECITALS A. The City and County of San Francisco ("San Francisco") and wholesale water customers of San Francisco in Alameda County, San Mateo County and Santa Clara County (the "Wholesale Customers")' including the City of Palo Alto (the IICity"), have entered into a Water Supply Agreement, dated July 2009 (the IIWSAJI), providing for the sale of water by San Francisco to the Wholesale Customers; B. The City and other Wholesale Customers are members of the Bay Area Water Supply and Conservation Agency r'BAWSCAJI ); C. Pursuant to the terms of the WSA, the cost of water paid by the Wholesale Customers (including the City) includes a component designed to provide San Francisco capital cost recovery for existing regional assets ("ERA PaymentsJl); D. The WSA provides that the Wholesale Customers, acting through BAWSCA, may prepay the remaining principal balance ofthe ERA Payments, in whole or in part; E. Substantial savings over the term of the WSA may be achievable through the prepayment through BAWSCA (the IIPrepaymentJl) ofthe ERA Payments to be made by Wholesale Customers participating in such Prepayment (the IIPrepayment ParticipantsJl; F. BAWSCA proposes to finance the Prepayment through an issuance of revenue bonds (the "Bonds") by BAWSCA; G. To pay debt service on the Bonds, to maintain required reserves and to satisfy BAWSCA's other obligations related to the Bonds, BAWSCA will impose charges on Prepayment Participants, which may be in the form of surcharges on water sold by San Francisco to Prepayment Participants under the WSA (the "SurchargeJl); H. The Surcharge is expected to be payable by the Prepayment Participants to San Francisco (for delivery to BAWSCA) together with the Prepayment Participants' other payments to San Francisco under the WSA; I. The issuance of the Bonds and the making of the Prepayment are subject to a variety of conditions, including a determination by BAWSCA that savings for Prepayment Participants can be achieved thereby; and ' , . 1 121204 sh 6051847 J. This City Council has determined that it is in the best interests of the City for the City to be a Prepayment Participant. NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. The City hereby elects to be a Prepayment Participant and hereby authorizes BAWSCA to make the Prepayment on behalf ofthe City. SECTION 2. The Director or Assistant Director of Administrative Services of the City are each, acting individually, hereby authorized and directed to take, for and on behalf of the City, all such actions by the City as shall be necessary to enable BAWSCA to issue and sell the Bonds and make the Prepayment, including, without limitation, the following: (A) Certify that the Prepayment has been duly authorized by the City and will not violate any law or agreement (including agreements respecting Qbligations providing for the issuance of debt secured by the revenues of the City's water enterprise); (B) Certify that payment of the Surcharge by the City will constitute an operation and maintenance expense ofthe City'~ water enterprise payable from the revenues of the City's water enterprise prior to the payment of obligations payable from the net revenues of the City's water enterprise; (C) Certify that any information respecting the City and the City's water enterprise and the financial and operating data respecting the City's water enterprise included or incorporated by reference in the Official Statement delivered by BAWSCA in connection with the sale and issuance of the Bonds is true and correct; and (D) Execute and deliver any continuing disclosure undertaking, or agreement to assist BAWSCA in connection with any BAWSCA continuing disclosure undertaking, required in connection with the sale of the Bonds. SECTION 3. All actions heretofore taken by any officers, employees, or agents of the City with respect to the Prepayment and the Bonds are hereby approved, confirmed and ratified; and any such other officers, employees, or agents of the City as may be authorized by City Manager andlor Director or Assistant Director of Administrative Services are hereby authorized and directed, for and in the name of and on behalf of the City, to do any and all things and take any and all actions, which they, or any of them, may deem necessary or desirable to carry out, give effect to and comply with the terms and intent of this Resolution. SECTION 4. The adoption of this resolution does not meet the California Environmental Quality Act's definition of a "project" pursuant to Public Resources Code Section 21065, thus no environmental review under CEQA is required. II II 121204 sh 6051847 2 SECTION 5. This Resolution shall take effect immediately upon its adoption. INTRODUCED AND PASSED: December 10, 2012 AYES: BURT, ESPINOSA, HOLMAN, KLEIN, PRICE, SCHARFF, SCHMID, SHEPHERD, YEH NOES: ABSENT: ABSTENTIONS: tJ ST : ~ 7JKU~~ City ,Clerk APPROVED AS TO FORM: 3 121204 sh 6051847