REPORT TO COUNCIL & PUBLIC FACILITIES FINANCING CORPORATION
SUBJECT
Title
Action to Approve Amendments to 2020 Installment Sale Agreement that Financed Capital Improvements at the San Jos?-Santa Clara Regional Wastewater Facility (RWF)
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The San Jos?-Santa Clara Regional Wastewater Facility (RWF) treats an average of 110 million gallons per day (mgd) of wastewater for the cities of San Jos?, Santa Clara, and five tributary agencies in the South Bay Area. The City of Santa Clara is a co-owner of the facility with the City of San Jos?, who is a majority owner and is responsible for the operations, management, and administration of the facility. The RWF was built in 1956 and, in 1959, Santa Clara signed an agreement to gain an ownership stake of approximately 20% in the RWF. Allocation of the operations and maintenance (O&M) and capital improvement program (CIP) costs is based on the ownership percentage, and is also charged out in appropriate proportions to the various tributary agencies. As a co-owner, Santa Clara is represented on the Treatment Plant Advisory Committee (TPAC), along with representatives from the tributary agencies, which advises San Jos? and its Council on the operations and administration of the facility. Santa Clara's portion of RWF related expenditures are paid for by Santa Clara sewer customers.
In 2020, in order to finance the City's share of capital improvements to the RWF, the City of Santa Clara Public Facilities Financing Corporation (Financing Corporation) and the City entered into an Installment Sale Agreement dated as of June 1, 2020 (Installment Sale Agreement), pursuant to which the Financing Corporation agreed to provide financing for the Project. Funding under the Installment Sale Agreement was provided by JPMorgan Chase Bank, N.A. (JPMorgan), as assignee of the Financing Corporation's rights under the Installment Sale Agree...
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