REPORT TO COUNCIL
SUBJECT
Title
Action on Resolutions Approving an Installment Sale Financing and Authorizing the Execution, Delivery and Sale of Wastewater Revenue Certificates of Participation and related Agreements in a Principal Amount not to Exceed $38 million to Finance and Refinance Capital Costs of the San Jos?-Santa Clara Regional Wastewater Facility; and Approval of the Related Budget Amendment
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The City of Santa Clara ("City") is a co-owner of the San Jos?-Santa Clara Regional Wastewater Facility ("RWF"), which is undergoing a major capital improvement program of nearly $1 billion over the next 10 years. Under the Sewage Plant Agreement dated March 30, 1959, as amended, the City is obligated to contribute its share of the capital costs of improvements to the RWF. The City's planning forecasts assumed that a portion of these contributions, currently projected to total $98 million in Fiscal Years 2023/24 through 2027/28, would be financed through the sale of sewer system obligations, repaid over time from the net revenues of the sewer system (the "Net Revenues"), to spread the cost between current and future sewer ratepayers.
In 2020, the City and the City of Santa Clara Public Facilities Financing Corporation (the "Corporation") entered into an Installment Sale Agreement (the "2020 Installment Sale Agreement") for the purpose of providing financing for the City's share of certain capital costs of improvements to the RWF (the "2020 Project"). The Corporation assigned its interests in the 2020 Installment Sale Agreement to JPMorgan Chase Bank, N.A., who provided the funding for the 2020 Project. The 2020 Installment Sale Agreement was structured as a draw-down financing facility in a maximum principal amount of $50 million, of which the City has drawn down $20 million.
The enclosed Resolutions authorize documents and actions related to the execut...
Click here for full text