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§ 8134. Application Content.

4 CA ADC § 8134Barclays Official California Code of Regulations

Barclays California Code of Regulations
Title 4. Business Regulations
Division 11. California Pollution Control Financing Authority (Refs & Annos)
Article 12. Rate Reduction Bonds
4 CCR § 8134
§ 8134. Application Content.
The Application shall contain all of the following.
(a) Information concerning the Issuer Applicant:
(1) Name, address, phone number and email address of contact person for Issuer Applicant.
(2) Copies of the following documents:
(i) Issuer Applicant's joint exercise of powers agreement indicating the provisions therein which qualify the Issuer Applicant to issue Rate Reduction Bonds and certified by the chair, executive director, secretary or other authorized officer of the Issuer Applicant;
(ii) Issuer Applicant's by-laws, rules or other similar document certified by the chair, executive director, secretary or other authorized officer of the Issuer Applicant; and
(iii) Issuer Applicant's Notice of Agreement and any Notice of Amendment filed with the Secretary of State.
(3) Certificate from the chair, executive director or other authorized officer of the Issuer Applicant to the effect that the Issuer Applicant's joint exercise of powers agreement limits the financing activities of the Issuer Applicant to financing or refinancing Utility Projects and projects for the use or benefit of public water or wastewater agencies.
(b) Information concerning the Local Agency Applicant:
(1) Name, address, phone number and email address of contact person for Local Agency Applicant.
(2) Evidence the Local Agency Applicant is, or owns and operates, a Publicly Owned Utility. Such evidence may consist of:
(i) Certificate from the chair, mayor, chief executive officer, general manager, assistant general manager, executive director or other authorized officer of the Local Agency Applicant to the effect that the Local Agency Applicant is, or owns and operates, a Publicly Owned Utility furnishing water or wastewater service to not less than 25,000 retail customers; or
(ii) Copy of charter documents establishing that the utility is a Publicly Owned Utility owned and operated by, or is a department or other subdivision of, the Local Agency Applicant certified by the chair, mayor, chief executive officer, general manager, assistant general manager, executive director or other authorized officer of the Local Agency Applicant, as well as the certification of such officer to the effect that such Publicly Owned Utility is furnishing water or wastewater service to not less than 25,000 retail customers.
(3) Evidence that senior lien unenhanced revenue bonds payable from the revenues of the Publicly Owned Utility owned or operated by Local Agency Applicant are, or upon issuance would be, rated not lower than Baa3 by Moody's Investors Service, BBB- by Standard & Poor's Ratings Services, or BBB- by Fitch Ratings, Inc. Such evidence may consist of:
(i) Current rating reports from one or more of the aforementioned rating agencies; or
(ii) A report of an independent investment banker or financial consultant concluding, based on an analysis of other Publicly Owned Utilities of comparable size, financial metrics, debt service coverage ratios, management experience and credit quality, that senior lien unenhanced bonds payable from the revenues of the Publicly Owned Utility upon issuance would be rated not lower than Baa3 by Moody's Investors Service, BBB- by Standard & Poor's Ratings Services, or BBB- by Fitch Ratings Inc.
(4) Resolutions, ordinances or other official actions of the Legislative Body of the Local Agency Applicant, adopted at public meetings held with all proper notice and at which a quorum was present and acting throughout, certified by the chair, president or other presiding officer of such Legislative Body and evidencing the determination by the Legislative Body of the Local Agency Applicant that:
(i) The project to be financed or refinanced with the proceeds of the sale of Rate Reduction Bonds is a Utility Project;
(ii) The Local Agency Applicant is electing to finance or refinance costs of the Utility Project pursuant to Section 6588.7 of the Government Code and the Financing Costs associated with the financing or refinancing are to be paid from Utility Project Property, including the Utility Project Charge for the Rate Reduction Bonds issued for the Utility Project in accordance with Section 6588.7 of the Government Code; and
(iii) Based on information available to, and projections used by, the Legislative Body of the Local Agency Applicant, the rates of the Publicly Owned Utility plus the Utility Project Charge resulting from the financing or refinancing of the Utility Project with Rate Reduction Bonds are expected to be lower than the rates of the Publicly Owned Utility if the Utility Project was financed or refinanced with bonds payable from the revenues of the Publicly Owned Utility.
(iv) A Local Agency Applicant with Public Utility having 500,000 or more retail customers may, in lieu of providing the evidence described in paragraph (iii), provide evidence that the use of Rate Reduction Bonds to finance or refinance Utility Projects provides substantial benefits to the Public Utility. These benefits may include, but are not limited to, lower interest rates on Rate Reduction Bonds and more favorable capitalization and debt service coverage ratio treatment that results in gross or present value lifetime savings for the Public Utility. (6588.7(c)(4))
(c) Information concerning the Utility Project:
(1) In support of the conclusion that the Project to be financed or refinanced with the proceeds of the sale of Rate Reduction Bonds is a Utility Project, the reports and materials referred to in Sections 8134(b)(5)(i), (ii) and (iii) must establish that:
(i) The items to be financed or refinanced with the proceeds of the sale of Rate Reduction Bonds consist of the acquisition, construction, installation, retrofitting, rebuilding, or other addition to, or improvement of, any equipment, device, structure, improvement, process, facility, technology, rights or property, located either within or outside of, the State of California, and that is used, or to be used, in connection with the operations of a Publicly Owned Utility for Conservation or Reclamation Purposes or in response to a Mandate; and
(ii) The use of the items to be financed with the proceeds of the sale of Rate Reduction Bonds will either:
a. Be designed to reduce the amount of potable water to be supplied by a Publicly Owned Utility, reduce the amount of water imported by a Publicly Owned Utility, or facilitate the use of wastewater by a Publicly Owned Utility for conservation purposes, including, without limitation, storm water capture and treatment, water and wastewater recycling, development of local groundwater resources, groundwater recharging, and water reclamation; or
b. Respond to a requirement, imposed by a Mandating Entity by any means, including without limitation, a statute, rule, regulation, an administrative or judicial order, a building, operating, or licensing requirement or condition, or an agreement with, or license or permit from, the Mandating Entity, on a facility of a Publicly Owned Utility or a facility operated in whole or in part for the benefit of a Publicly Owned Utility, or on the operations of a Publicly Owned Utility, or on the water or wastewater pumped, acquired, supplied, or treated by the Publicly Owned Utility.
(d) Information concerning the projected Financing Costs for the proposed Rate Reduction Bond financing:
(1) The Application shall provide the Financing Costs projected to be incurred in connection with the proposed Rate Reduction Bond financing, including:
(i) Anticipated Rate Reduction Bond Scale
a. Not to exceed principal amount
b. Maturities
c. Interest rates
(A) Fixed or variable
(B) Current interest or capital appreciation bonds
d. Redemption provisions
(ii) Anticipated Professional Fees
a. Bond counsel fee
b. Financial advisor fee
c. Underwriters counsel fee
d. Trustee counsel fee
e. Accounting fee
f. Engineering fee
g. Other legal fees
h. Other consultants fees
(iii) Issuance Fees
a. Underwriting or placement fees
b. Trustee fee
c. Rating agency fees
(iv) Credit or Liquidity Enhancement Fees
a. Bond insurance fee
b. Bank letter of credit or standby bond purchase agreement fees
c. Debt service reserve amount or surety fees
d. Other credit or liquidity enhancement fees
(v) Servicing and Administrative fees
a. Publicly Owned Utility servicing fee (bill and collect the Utility Project Charge)
b. Annual trustee fees
c. Interest rate swap
d. Other servicing and administrative fees
(2) Certificate from an independent financial advisor to the effect that based on information available to them, the projected Financing Costs fall within the normal range of financing costs for comparable types of debt issuance.

Credits

Note: Authority cited: Sections 6588.7(b)(3) and 6588.7(b)(7), Government Code. Reference: Sections 6585 and 6588.7, Government Code.
History
1. New section filed 11-10-2014 as an emergency; operative 11-10-2014 (Register 2014, No. 46). A Certificate of Compliance must be transmitted to OAL by 5-11-2015 or emergency language will be repealed by operation of law on the following day.
2. Repealed by operation of Government Code section 11346.1(g) (Register 2015, No. 20).
3. New section refiled 5-19-2015 as an emergency; operative 5-19-2015 (Register 2015, No. 21). A Certificate of Compliance must be transmitted to OAL by 8-17-2015 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 5-19-2015 order transmitted to OAL 7-28-2015 and filed 9-8-2015 (Register 2015, No. 37).
5. Change without regulatory effect amending section and Note filed 3-19-2020 pursuant to section 100, title 1, California Code of Regulations (Register 2020, No. 12).
This database is current through 7/5/24 Register 2024, No. 27.
Cal. Admin. Code tit. 4, § 8134, 4 CA ADC § 8134
End of Document