Article 2.5 - Additional Financing Authority

California Water Code — §§ 81436-81438

Sections (5)

Added by Stats. 2012, Ch. 251, Sec. 1. (AB 2167) Effective January 1, 2013.

For the purposes of this article, the following definitions shall apply:

(a)“BAWSCA members” means Stanford University, the California Water Service Company, and eligible public entities as defined by Section 81305.

(b)“July 2009 Water Supply Agreement” means the water supply agreement by and between the City and County of San Francisco and the BAWSCA members, as amended or supplemented.

§ 81436.5

Added by Stats. 2012, Ch. 251, Sec. 1. (AB 2167) Effective January 1, 2013.

The agency may prepay all or a portion of any unpaid principal balance relating to the existing capital assets as of June 30, 2009, on behalf of BAWSCA members, as provided in the July 2009 Water Supply Agreement.

§ 81437

Added by Stats. 2012, Ch. 251, Sec. 1. (AB 2167) Effective January 1, 2013.

(a)(1) The agency may acquire from the City and County of San Francisco the right to receive all or a portion of the amounts payable by BAWSCA members under the July 2009 Water Supply Agreement.

(2)The City and County of San Francisco may sell to the agency its right to receive amounts payable by BAWSCA members under the July 2009 Water Supply Agreement.

(b)(1) If the agency acquires, and the City and County of San Francisco sells, the right to receive amounts payable pursuant to subdivision (a), if requested by the agency, the City and County of San Francisco

shall continue to collect amounts payable by BAWSCA members under the July 2009 Water Supply Agreement in accordance with the terms of that agreement and the City and County of San Francisco shall transfer amounts so collected to the agency on a monthly basis or on a periodic basis agreed to by the agency and the City and County of San Francisco.

(2)The agency shall apply amounts received pursuant to this subdivision to pay debt service on any bonds issued by the agency for a use authorized by Section 81437.5 and to satisfy all other obligations of the agency related to these bonds.

(3)The agency may distribute any amounts received pursuant to this subdivision not needed for the purposes of this subdivision to BAWSCA members. The agency may condition any distribution pursuant

to this paragraph upon BAWSCA members’ agreement to waive any right of prepayment respecting any amounts purchased that the member may have under the July 2009 Water Supply Agreement.

§ 81437.5

Added by Stats. 2012, Ch. 251, Sec. 1. (AB 2167) Effective January 1, 2013.

In addition to the uses authorized in Section 81434, the agency may use proceeds of bonds issued pursuant to this division as follows:

(a)For the construction, reconstruction, or improvement of any works carried out by the agency on behalf of a BAWSCA member.

(b)For the purpose of assisting in the repayment of any existing capital assets, if those assets were designed and intended in whole or in part to furnish water to BAWSCA members, whether those assets were carried out jointly by the agency and other local public agencies, or solely by those other public agencies.

(c)To make a prepayment, as described in Section 81436.5, or

an acquisition, as described in Section 81437.

(d)To pay the costs of issuance of the bonds and to fund reserve funds securing the bonds.

§ 81438

Added by Stats. 2012, Ch. 251, Sec. 1. (AB 2167) Effective January 1, 2013.

(a)In addition to the authority granted in Section 81435, the agency may do all of the following:

(1)Impose reasonable rates, fees, and charges on BAWSCA members for any program or service provided or work performed by the agency.

(2)Impose rates, fees, and charges on BAWSCA members and any entity that subsequently serves a BAWSCA member’s service area in an amount as shall be necessary, together with other available sources of funds, to pay debt service on any bonds issued by the agency for a use authorized by Section 81437.5 and to satisfy all other obligations of the agency related to these bonds, including,

but not limited to, funding and maintaining reserve funds and complying with financial covenants.

(3)Distribute any amounts collected that are not needed for the purposes of this article to BAWSCA members.

(b)If requested by the agency, the City and County of San Francisco shall collect any rates, fees, and charges imposed by the agency pursuant to this section as a surcharge under the July 2009 Water Supply Agreement. These amounts shall be collected in a manner, and with remedies for nonpayment, specified in an agreement between the agency and the City and

County of San Francisco.