01-14-2019 BPU RPT 15 - Laserfiche WebLink

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W A T E R E N E R G Y T I F F RIVERSIDE PUBLIC UTILITIES W& Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: JANUARY 14, 2019 ITEM NO: 15 SUBJECT: ISSUANCE OF 2019 REFUNDING ELECTRIC REVENUE BONDS ISSUE: Approve the issuance of up to $400 million of Electric Revenue Bonds for purposes of refunding the previously issued 2008D Electric Revenue Bonds to capture interest rate savings; terminate a portion of the Electric Utility interest rate swaps and refund the associated portions of the previously issued 2008A and 2008C Variable Rate Refunding Revenue Bonds using fixed-rate bonds to reduce financial risk and finance identified Electric Utility capital projects. Proceeds will also be used to pay bond issuance costs. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: Approve the City's Financing Team as described herein; 2. Conduct a public hearing to consider the issuance of Refunding Electric Revenue Bonds in an amount not -to -exceed $400 million; 3. Adopt a resolution for the issuance of Refunding Electric Revenue Bonds; 4. Delegate to the City's Financing Team, at the time of Bond issuance, the determination of specific maturities to be refunded, the amount of interest rate swaps to be terminated and the form of new bonds as outlined in Recommendation No. 3 above; 5. Authorize the City Manager, or his designee, to execute all documents related to this transaction; and 6. Upon closing of the 2019 Refunding Electric Revenue Bonds, authorize the Chief Financial Officer to make the necessary budget adjustments and/or appropriations to properly record the refunding and financing expenses in accordance with governmental accounting requirements. BACKGROUND: 2008D Electric Revenue Bonds In May 2008, the City of Riverside issued $209,740,000 of 2008D Electric Revenue Bonds to fund the Electric Utility's Capital Improvement Program, including the construction of the Riverside Energy Resource Center Units 3 and 4, two 49 MW peaking units. The 2008D Bonds will mature in 2038 and