21. San Jose Water Company tax-exempt bondsCity Hall
10300 Torre Avenue
Cupertino, CA 45014 -3255
(408) 777 -3212
FAX: (408) 777 -3366
CUPERTINO
PUBLIC AND ENVIRONMENTAL AFFAIRS
Agenda Item No. ;
SUMMARY
Meeting Date: May 4, 2010
Authorize the mayor to sign a letter supporting Stn Jose Water Company's application for tax -
exempt bonds as part of the California Pollution Control Financing Authority's revenue bonds.
BACKGROUND
The City was been contacted by San Jose Water Company (SJWC) to ask for the Council's
support for SJWC's application for tax- exempt bonds as part of the California Pollution Control
Financing Authority's revenue bonds. This program allows investor -owned utilities to secure
bonds for projects that will reduce pollution and i-acilitate the delivery of high quality and
reliable water service. These bonds typically have lower interest rates than other. sources of
SJWC debt. Because interest expense is a "pass - through" cost to customers, SJWC's ability to
secure these Iower interest loans will directly result in a savings to customers.
LEGISLATIVE COMMITTEE RECOMMENDATION
Based on e-mail communications received from Vice Mayor Wong and Councilmember
Mahoney in support, it is the recommendation of the Legislative Committee that the council
support SJWC's application for tax- exempt bons as part of the California Pollution Control
Financing Authority's revenue bonds.
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Attachment A: Draft letter of support
Approved for submission to the
City Council:
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David W. Knapp,
City Manager
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Public & Environmental Affairs Director
ATTACHMENT A
Today's date
Michael Parapian
Executive Director
California Pollution Control Financing Authority
915 Capital Mall, Suite 457
Sacramento, CA 95814
Re: San Jose Water Company Project
Application No.: 00833 (SB)
Initial Resolution No.: 10 -04
Dear Mr. Paparian:
I write you to express support for San Jose Water Company's (SJWC) application for financing through
the California Pollution Control Financing Authority's revenue bonds.
SJWC, a public utility regulated by the California Public Utilities Commission, provides high quality and
reliable water service to the residents of the City of Cupertino. Access to safe and reliable water is
essential for maintaining public health, fire fighting capability, and economic prosperity, all things that
contribute to the quality of life for the one million residents served by the company in the greater San Jose
metropolitan area.
The company is seeking the issuance of tax-exempt bonds to finance projects that will reduce pollution
and facilitate the delivery of safe, high quality water service. The projects include improvements to
treatment plant facilities (including equipment) to comply with increasingly stringent water quality and
environmental regulations, construction of infrastructure needed to reliably and safely transport water
throughout the company's 140 - square mile service area, and employment of best - available - technologies
such as photovoltaic systems and hybrid vehicles to reduce energy consumption and minimize the
creation of greenhouse gas.
While your job to apportion the available allocation among competing and worthwhile projects is no doubt
difficult, I would like you to consider the benefits these projects will have on public health, safety, and
quality of life for the residents of Cupertino.
On behalf of the City of Cupertino, I strongly urge you to approve the San Jose Water Company Project at
your May 26, 2010, meeting. Thank you for your consideration.
Sincerely,
Kris Wang
Mayor
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