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Item PFA-3 - Water Revenue Bonds
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Item PFA-3 - Water Revenue Bonds
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Last modified
5/30/2024 4:32:57 PM
Creation date
5/29/2024 6:14:44 PM
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City Clerk
Doc Type
Agenda Packet
Agency
Finance & Management Services
Item #
PFA-3
Date
6/4/2024
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Water Revenue Bonds <br />June 4, 2024 <br />Page 3 <br />Assistant City Manager, City Treasurer, or the Executive Director of the Finance and <br />Management Services Agency (a "Designated Officer"). <br />1) Master Installment Purchase Agreement between the City and the Authority <br />under which the Authority agrees to provide financing for the water <br />improvements, and the City agrees to purchase the completed improvements, in <br />consideration of the payment by the City of semiannual installment payments, to <br />be made from the net revenues of the City's water system. <br />2) First Supplement to Master Installment Purchase Agreement between the <br />City and the Authority to create the payment obligation for this series of bonds <br />and assign the Authority's rights and duties to the Trustee (US Bank) to receive <br />installments and make payments. <br />3) Escrow Agreement among the City and the Trustee (Bank of New York Mellon <br />Trust Company) to establish an escrow fund to facilitate payment of the 2014 <br />bonds. <br />4) Bond Purchase Agreement among the City, the Authority, and the underwriter <br />(Ramirez and Co., Inc.), pursuant to the terms and provisions of which the 2024 <br />Water Revenue Bonds will be sold through a negotiated method of sale, such <br />terms and provisions including a true interest cost of the 2024 Water Revenue <br />Bonds not to exceed 4.75% and the underwriter's discount not to exceed 0.34% <br />of the par amount of the 2024 Water Revenue Bonds. <br />5) Indenture of Trust between the Authority and the Trustee (US Bank) which sets <br />forth the material terms, covenants, and provisions relating to the 2024 Water <br />Revenue Bonds. <br />6) Preliminary Official Statement that will be distributed to prospective purchasers <br />of the 2024 Water Revenue Bonds that must contain all facts material to the <br />2024 Water Revenue Bonds and the City's water system and must not omit any <br />material facts. The Authority Board has an obligation to ensure that the <br />Preliminary Official Statement includes all information that would be material to a <br />prospective investor's decision whether to purchase the 2024 Water Revenue <br />Bonds. While the City's legal counsel, consultants, and the underwriter have <br />participated in preparing the document, the City and Authority are ultimately <br />responsible for ensuring that the Preliminary Official Statement is accurate, <br />contains no misleading information, and does not omit any information necessary <br />to make Preliminary Official Statement not misleading to investors. <br />7) Continuing Disclosure Certificate included as Appendix E of the Preliminary <br />Official Statement that commits the City to providing certain annual reports and <br />
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