03-13-2023 BPU RPT 07 - Laserfiche WebLink

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W A T"E'R I EHE -R G Y I L I'F E P U B L I C U T I L I TIE S RIVERSIDE PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES Board Memorandum DATE: MARCH 13, 2023 SUBJECT: RESOLUTION AUTHORIZING AN EXTENSION OF THE TERM OF A LETTER OF CREDIT SUPPORTING THE VARIABLE RATE REFUNDING ELECTRIC REVENUE BONDS, ISSUE OF 2011A, USING PFM FINANCIAL ADVISORS, LLC AS MUNICIPAL ADVISOR, STRADLING YOCCA CARLSON & RAUTH AS BOND AND DISCLOSURE COUNSEL, AND NIXON PEABODY LLP, REPRESENTING BANK OF AMERICA, N.A. FOR THE LETTER OF CREDIT FACILITY ISSUE: Consider adopting a resolution authorizing the extension of the term of a Letter of Credit Supporting the Variable Rate Refunding Electric Revenue Bonds, Issue of 2011A, for an additional three years and approve the financing team and costs associated with the transaction. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: 1. Adopt a Resolution authorizing the extension of the term of a Letter of Credit supporting the Variable Rate Refunding Electric Revenue Bonds Issue of 2011A, and approving the form of a First Amendment to the Reimbursement Agreement and the Fee Letter relating to such Letter of Credit and approving the supplement to the Official Statement for the 2011A Electric Revenue Bonds to reflect a three-year extension of the term of the Letter of Credit on behalf of the City of Riverside; 2. Approve and authorize expenditures for the use of PFM Financial Advisors, LLC as the City's Municipal Advisor, Stradling Yocca Carlson & Rauth as the City's Bond and Disclosure Counsel, and reimburse Bank of America, NA for legal costs associated with their transactions; and 3. Authorize the City Manager, or designee, to execute all documents related to these actions and to make non -substantive revisions to those documents as needed. BACKGROUND: On April 5, 2011, the City Council approved the issuance of $56,450,000 in aggregate principal to refund City of Riverside Variable Rate Refunding Electric Revenue Bonds, Issue of 2008B and to establish a construction fund in the amount of $4,102,729. The 2011 bonds were issued as variable rate bonds with a final maturity in 2035. The bonds were sold via direct purchase to Wells Fargo Bank, National Association for a term of three years, ending April 28, 2014. At that time, they were remarketed directly to Wells Fargo, and again in 2017 with April 27, 2020 as the new expiration date.