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The Pleasanton City Council will be voting on certain financing documents and actions in connection with the issuance of $19 million in water revenue bonds that would help pay for several improvement projects for the city’s water system during Tuesday’s council meeting.
According to the staff report, the council will look to approve a resolution to authorize the execution and delivery of an installment sale agreement for the bonds, a bond purchase agreement and a preliminary official statement authorizing other related matters regarding the bonds.
“The proposed $19 million in water revenue bonds will fund improvements to the city’s water facilities and pay costs of issuance of the bonds,” the staff report states.
The cost to issue the bonds is estimated to be $233,337, according to staff.
However, the bonds will not be authorized and issued by the council itself. Instead, that will be handled by the Pleasanton Joint Powers Financing Authority.
“This is a companion report to the action being considered by the authority,” according to staff. “This is a separate, but related, action from the authorization to issue bonds, which will be handled through the Authority to fund water system improvements.”
The council declared its intent to reimburse money spent on near-term improvements to Pleasanton’s water infrastructure through debt financing in the form of a revenue bond sale during the March 5 council meeting.
Then during its April 16 meeting, the council approved a resolution to prepay the 2017 Water Revenue Bonds “to their maturity” on Feb. 1, 2025 in order to meet the debt service coverage requirements to issue the additional debt of the new bond sale.
According to the report, the proposed bond issued by the Pleasanton Joint Powers Financing Authority will be sold via a negotiated sale to Siebert Williams Shank & Co., LLC — an independent non-bank financial services firm. The repayment plan will last 30 years and have an interest rate that won’t exceed 6%.
“The bonds are projected to have a true interest cost of 4.10% in today’s market,” according to the staff report. “The principal and interest payments, together, on the bonds will be approximately $1.12 million each fiscal year until final maturity. Debt service is expected to total approximately $33.4 million over the next 30 years.”
The City Council meeting is scheduled to begin at 7 p.m. Tuesday (May 7). The full agenda can be accessed here.
In other business:
* The council will be voting on adopting a resolution to approve the allocation of funds for the Housing and Human Services Grant and Community Grant Program for the 2024 grant funding cycle. It will also be looking to adopt a resolution to approve the use of federal Community Development Block Grant funds.
* The Pleasanton Police Department will be presenting its bi-annual update to the council on crime trends, personnel matters and PPD programs like the Student Resource Officer and Alternative Response Unit. The item was continued from the April 16 council meeting.
* As part of the consent calendar, which are items considered routine in nature and typically approved through a single vote, the council will be looking to adopt an ordinance to amend the PPD’s military equipment use policy in order to add two AR-15 style firearms and a 40 millimeter projectile launcher.
* Under the consent calendar, the council will be voting on awarding a nearly $4.2 million construction contract with Bay Cities Paving & Grading, Inc. for the Hopyard Road and Owens Drive Intersection Improvements Project; approving various professional service agreements totaling $553,005; and approving budget amendments in the Street Capital Improvement Project General Fund.
* Another consent calendar item the council will be looking to approve is awarding another construction contract to American Asphalt Repair & Resurfacing Company, Inc. for the Annual Slurry Sealing of Various Streets Project. The contract will be in the amount of nearly $375,000.
* The council will also be approving the ratification of appointments to the city’s various commissions and committees as part of its consent calendar.