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Page 1 of 7 <br />Item #18 <br /> CITY COUNCIL AGENDA REPORT <br /> <br />May 7, 2024 <br />Finance <br /> <br />TITLE: APPROVING, AUTHORIZING AND DIRECTING EXECUTION OF CERTAIN <br />FINANCING DOCUMENTS AND CERTAIN ACTIONS IN CONNECTION WITH <br />ISSUING UP TO $19,000,000 IN WATER REVENUE BONDS FOR FINANCING <br />IMPROVEMENTS TO THE CITY’S WATER SYSTEM <br /> <br />SUMMARY <br />The City’s water facilities produce, treat, store, and/or deliver potable and recycled water to its <br />customers, which include all City residents and commercial customers, as well as portions of <br />unincorporated Alameda County (i.e., Remen Tract, Happy Valley, and the area west of <br />Foothill Road/Sunol Boulevard). The proposed $19 million in water revenue bonds (Bonds) will <br />fund improvements to the City’s water facilities and pay costs of issuance of the Bonds. <br /> <br />The proposed Bonds to be issued by the Pleasanton Joint Powers Financing Authority <br />(Authority) for an amount not to exceed $19 million will (1) be sold via negotiated sale to <br />Siebert Williams Shank & Co., LLC, as underwriter, (2) mature in 30 years, (3) have an interest <br />rate not to exceed 6%, and (4) include a call provision allowing the City to redeem, at the City’s <br />option, some or all of the Bonds prior to their scheduled maturity. <br /> <br />RECOMMENDATION <br />Adopt the attached resolution (Attachment 1) authorizing the execution and delivery of an <br />Installment Sale Agreement, a Bond Purchase Agreement and a Preliminary Official Statement <br />(Attachments 2-4) and authorizing certain related matters regarding the Pleasanton Joint <br />Powers Financing Authority 2024 Water Revenue Bonds. <br /> <br />BACKGROUND <br />This is a companion report to the action being considered by the Authority. This is a separate, <br />but related, action from the authorization to issue bonds, which will be handled through the <br />Authority to fund water system improvements. <br /> <br />The Authority is a joint exercise of powers agency formed between the City and the City’s <br />Housing Authority to assist the City with municipal financing transactions. The City Council sits <br />as the governing body of the Authority, and City staff serve as staff of the Authority. <br /> <br />The City’s Capital Improvement Program and projects that were approved through various City <br />Council actions include planned capital expenditures that will be funded through a combination <br />of debt financing and cash on hand. There are immediate financing needs for various water <br />infrastructure replacement projects. The Authority plans to issue water revenue bonds to help <br />the City finance the acquisition, construction and improvements to the City’s potable water <br />system. The City will purchase those projects from the Authority pursuant to the Installment <br />Sale Agreement. <br /> <br />Page 210 of 448Page 219 of 557