HomeMy WebLinkAboutReso - CC - 083-2012RESOLUTION NO. 83 2012
RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF BURLINGAME AUTHORIZING THE MAKING OF A PREPAYMENT
UNDER A WATER SUPPLY AGREEMENT WITH THE CITY AND COUNTY OF SAN
FRANCISCO AND RELATED MATTERS
WHEREAS, 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 Burlingame (the "City"), have entered into a Water Supply
Agreement, dated July 2009 (the "WSA"), providing for the sale of water by San Francisco to the
Wholesale Customers; and
WHEREAS, the City and other Wholesale Customers are members of the Bay Area Water
Supply and Conservation Agency ("BAWSCA"); and
WHEREAS, 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 Payments"); and
WHEREAS, the WSA provides that the Wholesale Customers, acting through BAWSCA, may
prepay the remaining principal balance of the ERA Payments, in whole or in part; and
WHEREAS, substantial savings over the term of the WSA may be achievable by the
prepayment, through BAWSCA (the "Prepayment"), of the ERA Payments by Wholesale Customers
participating in such Prepayment (the "Prepayment Participants"); and
WHEREAS, BAWSCA proposes to finance the Prepayment through an issuance of revenue
bonds (the "Bonds") by BAWSCA; and
WHEREAS, 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 "Surcharge"); and
WHEREAS, 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; and
WHEREAS, 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
WHEREAS, 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, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
BURLINGAMEAS FOLLOWS:
Section 1. The City hereby elects to be a Prepayment Participant and hereby authorizes
BAWSCA to make the Prepayment on behalf of the City.
Section 2. The City Manager is 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 obligations 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 of the City's 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 the City
Manager and any such other officers, employees, or agents of the City as may be authorized by the City
Manager 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. This Resolution shall take effect immediately upon its adoption.
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Ann Keig 1\ ayor
I, Mary Ellen Kearney, City Clerk of the City of Burlingame do hereby certify that the foregoing
Resolution was introduced at a regular meeting of the City Council on the 3rd -day of December, 2012,
and was adopted thereafter by the following vote:
AYES: Councilmembers: BAYLOCK, BROWNRIGG, DEAL, KEIGHRAN, NAGEL
NOES: Councilmembers: NONE
ABSENT: Councilmembers: NONE
Mary Allen Kearney, City Clerk