HomeMy WebLinkAbout04/16/1996, CIB 1 - APPROVAL OF 1996 LEASE REVENUE BONDS e
�ufl►►��I� icity of San LUIS OBI SPO ��°A �
COUNCIL AGENDA REPORT
FROM: Bill Statler, Director of Finanwk*r"
Prepared by: Linda Asprion, Revenue Manager,j#..&rs
SUBJECT: APPROVAL OF 1996 LEASE REVENUE BONDS
CAO RECOMMENDATION
1. Approve minutes of meeting held on June 7, 1994.
2. Elect officers for the Capital Improvement Board (President and Vice President).
3. Adopt a resolution approving the sale of the 1996 lease revenue bonds.
DISCUSSION
In June 1986, the City of San Luis Obispo Capital Improvement Board was established as a
public authority to implement required financing for construction and improvement to various
public facilities. The City Council serves as the Board of Directors for this agency. The
following three actions are before the Board tonight:
■ Approval of minutes from June 7, 1994. Minutes from the Board's last meeting are
attached for approval based on those already adopted by the City Council for this meeting.
■ Election of of w- ers. In keeping with past practice, it is recommended that the Mayor
serve as President and that the Vice-Mayor serve as Vice-President.
■ Approval of 1996 bond financing program. The key issues related to the 1996 bond
financing program are fully described in the Council Agenda Report separately prepared
for this item.
ATTACHMENTS
■ Minutes from June 7, 1994 meeting
■ Resolution approving the sale of the 1996 lease revenue bonds
ON FILE IN THE BOARD OFFICE
■ Notice Inviting Bids
■ Notice of Intention to Sell Bonds
Council Agenda _ Tuesday, June 7, 1994
*McCLUSKEY FINALAC7lON: 1)Northbound bicycle lane between San Luis Drive and Buchon deleted(3-1-1,
BR-no, PP-absent); 2) Adopt staff recommendation between Monterey and Buchon (4-o-1, PP-
absent);3)Adopt staff recommendation between Ella and Bishop (4-0-1, PP-absent);4) Narrow all
traffic lanes, keep curb parking, install narrow bike lanes from Bishop to Orcutt Rd(3-1-1, BR-no,
PP-absent);5)Approve specifications and plans, authorize staff to advertise for bids, and authorize
CAO to award contract to lowest bidder (4-0-1, PP-absent).
► 8. FIRE STATION HEADQUARTERS CONTRACT AMENDMENT (NEUMANN/92-04 -
30 min.)
Consideration of a renegotiated contract in the amount of$235,796 with Ross Levin Maclntyre and
Varner-(RLM & V) to reflect the change in location of the headquarters fir'e station, the deletion of
the recreation administration offices and the addition of a training facility, and approve the Master
Plan Design Program.
♦RECOMMENDATION: By motion, approve and authorize Mayor to execute renegotiated contract,
and approve the Master Plan Design Program and comment on the Preliminary Site Layout for a
new Headquarters Fire Station and training facility at 2260 Broad Street and direct RLM & .V to
proceed with the design phase of the project.
*NEUMANN FINAL ACTION: Approved renegotiated contract and Master Plan Design Program (4-0-1; PP-
absent). ,
fes.
ADJOURN TOA MEETING OF THE CAPITAL IMPROVEMENT.BOARD ,_
CALL TO ORDER THE ANNUAL MEETING OF THE CAPITAL IMPROVEMENT BOARD
ROLL CALL: President Peg Pinard, Vice President Bill Roalman, Board Members Penny
Rappa, Dave Romero, and Allen K. Settle
President Pinard absent.
9. CAPITAL IMPROVEMENT BOARD (STATLER/242 - 5 min.)
ti
Annual meeting of the Capital Improvement Board.
RECOMMENDATION:
1) Approve minutes of the meeting held on June 1, 1993.
2) Elect officers for the Capital Improvement Board, including President and Vice President
3) Adopt resolution authorizing the issuance and sale of refunding bonds for the purpose of
refinancing 1986 Lease Revenue Bonds, authording.jhe amendment and restatement of `
1986 lease with the City of San Luis Obispo, and approving related documents and official
actions.
9
RESOLUTION NO.
RESOLUTION OF THE BOARD OF DIRECTORS OF THE CITY OF SAN LUIS OBISPO
CAPITAL 11VIPROVEMENT BOARD AUTHORIZING THE ISSUANCE
AND SALE OF LEASE REVENUE BONDS FOR THE PURPOSE OF PROVIDING
FINANCING TO THE CITY OF SAN LUIS OBISPO, AND APPROVING RELATED
DOCUMENTS AND OFFICIAL ACTIONS
WHEREAS, the City Council of the City of San Luis Obispo (the "City") has previously
adopted its Ordinance No. 1059 (1986 Series) on April 15, 1986 (the "Ordinance"), establishing
the City of San Luis Obispo Capital Improvement Board (the 'Board") for the purpose of
assisting the City in the financing of public improvements; and
WHEREAS, the City wishes at this time to finance the acquisition and construction of
various properties.and improvements to be used for the municipal purposes of the City, including
but not'limited to facilities to be used for fire headquarters station purposes, land acquisition,
seismic and other improvements to the City Hall, and the acquisition of street lighting facilities;
and
WHEREAS, in order to provide funds for such purpose, the City has proposed to sell to
the Board certain existing properties owned by the City, consisting generally of a headquarters
fire station, land for public park, open space, transportation and flood protection purposes, land
on which the existing Bowden Adobe building is situated and adjacent properties, and the
corporation yard of the City(collectively,the"Properties"),pursuant to an Acquisition Agreement
dated as of June 1, 1996 (the "Acquisition Agreement"), by and between the City as seller and
the Board as purchaser, and
WHEREAS, in order to raise the funds necessary to acquire Properties from the City
under the Acquisition Agreement,the Board has proposed to issue its 1996 Lease Revenue Bonds
in the maximum principal amount of$7,500,000(the"Bonds") under an Indenture of Trust dated
as of June 1, 1996 (the "Indenture"), by and between the Board and a commercial bank to be
designated by the Executive Director, as trustee (the "Trustee"); and
WHEREAS, for the purpose of providing a source of funds with which to pay debt service
on the Bonds, the City has proposed to lease the Properties back from the Board under a Lease
Agreement dated as of June 1, 1996 (the "Lease"), by and between the Board as lessor and the
City as lessee, under which the City will agree to pay semiannual rental payments which will be
sufficient to enable the Board to pay principal of and interest on the Bonds when due; and
WHEREAS, the firm of Evensen Dodge, Inc. as financial adviser to the City and the
Board(the "Financial Adviser"),has recommended that the Board sell the Bonds on a competitive
basis and has prepared a preliminary form of an Official Statement describing the Bonds; and
WHEREAS, the Board of Directors wishes at this time to approve such financing
transactions and all documents relating thereto;
c!lxs- -3
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the City of San
Luis Obispo Capital Improvement Board as follows:
SECTION 1. Issuance of Bonds Approval of Indenture. The Board of directors hereby
authorizes the issuance of the Bonds under and pursuant to Ordinance No. 1059 in the maximum
principal amount of$7,500,000. The Bonds shall be issued pursuant to the terms and provisions
of the Indenture, which the Board hereby approves in substantially the form on file with the
Secretary, together with any changes therein or additions thereto deemed advisable by the
Executive Director, whose execution thereof shall be conclusive evidence of the approval of any
such changes or additions. The Board of Directors hereby authorizes and directs the Executive
Director to execute, and the Secretary to attest and affix the seal of the Board to, said form of
the Indenture for and in the name of the Board. The Board of Directors hereby authorizes the
delivery and performance of the Indenture.
SECTION 2. Anvroval of Related Financing Agreements. The Board of Directors hereby
approves each of the following agreements required to implement the financing plans to be
accomplished by the Bonds, in substantially the respective forms on file with the Secretary
together with any changes therein or additions thereto deemed advisable by the Executive
Director, whose execution thereof shall be conclusive evidence of the approval of any such
changes or additions. The Executive Director is hereby authorized and directed for and in the
name and on behalf of the Board to execute, and the Secretary is hereby authorized and directed
to attest and affix the seal of the Board to, the final form of each such agreement:
A. Acquisition Agreement by and between the Board and the City, relating to the sale
of the Properties by the City to the Board;
B. Lease Agreement by and between the Board as lessor and the City as lessee,
relating to the lease of the Properties by the Board back to the City; and
C. Assignment Agreement by and between the Board and the Trustee, whereby the
Board assigns certain of its rights under the Lease Agreement to the Trustee for
the benefit of the Bond owners.
SECTION 3. Authorization of Competitive Sale of Bonds. The Board of Directors
hereby authorizes and directs the competitive sale of the Bonds in accordance with the Notice
Inviting Bids in substantially the form on file with the Secretary together with any changes
therein or additions thereto deemed advisable by the Chief Financial Officer. The Chief Financial
Officer is hereby authorized and directed for and in the name and on behalfof the Board to
accept the best bid for the sale of the Bonds, as determined in accordance with the Notice
Inviting Bids.
SECTION 4. Publication of Notice. Pursuance to 53692 of the Government Code, Jones
Hall Hill & White, as bond counsel to the Board, is hereby authorized and directed to cause the
Notice of Intention to Sell Bonds, in substantially the form on file with the Secretary together
with any changes therein or additions thereto deemed advisable by the Executive Director, to be
published once in the Bond Buyer. Such publication shall be made not later than fifteen (15)
days prior to the date set for receipt of bids on the Bonds.
SECTION 5. Official Statement. The Board of Directors hereby approves the preliminary
Official Statement describing the Bonds in substantially the form submitted by the Financial
Adviser and on file with the Secretary. The Chief Financial Officer is hereby authorized and
directed to approve any changes in or additions to said preliminary Official Statement and to
execute an appropriate certificate stating the Chief Financial Officer's determination that the
preliminary Official Statement (together with any changes therein or additions thereto) has been
deemed nearly final within the meaning of Rule 15 c2-12 of the Securities Exchange Act of 1934.
Distribution of the preliminary Official Statement by the Financial Adviser to prospective bidders
is hereby approved The Chief Financial Officer is hereby authorized and directed to approve
any changes in or additions to a final form of said Official Statement, and the execution thereof
by the Chief Financial Officer shall be conclusive evidence of approval of any such changes and
additions. The Board of Directors hereby authorizes the distribution of the final Official
Statement by the winning bidder. The final Official Statement shall be executed in the name and
on.behalf of the Board by the Chief Financial Officer.
SECTION 6. Official Actions. The Executive Director, the Chief Financial Officer, the
Secretary, the Board Attorney and all other officers of the Board are each authorized and directed
in the name and on behalf of the Board to make any and all site leases, assignments, certificates,
requisitions, agreements, notices, consents, instruments of conveyance, warrants and other
documents, which they or any of them might deem necessary or appropriate in order to
consummate any of the transactions contemplated by the agreements and documents approved
pursuant to this Resolution. Whenever in this resolution any officer of the Board is authorized
to execute or countersign any document or take any action, such execution countersigning or
action may be taken on behalf of such officer by any person designated by such officer to act on
his or her behalf in the case such officer shall be absent or unavailable.
SECTION 7. Effective Date. This Resolution shall -take effect immediately upon its
passage and adoption.
On motion of seconded by and
on the following roll call vote:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this day of April, 1996.
ATTEST:
Secretary President, Allen Settle
APPROVED AS TO FORM:
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MFUING AGENDA
ol
A 6 ITEM #
City Council Meeting
Tuesday, June 7, 1994 - 7:00 PM Page 11
I
Moved by Romero/Rappa to adopt Alternative 3,the"squeeze down'approach from Bishop to Orcutt
Road; motion carried (3-1-1, Council Member Roalman voting no, Mayor Pinard absent).
Moved by Roalman/Romero to authorize staff to advertise for bids and the CAO to award the contract
to the lowest bidder; motion carried (4-0-1, Mayor Pinard absent).
10:55 p.m., Vice Mayor Settle called a recess.
11:02 p.m., Council reconvened; Mayor Pinard absent.
8. FIRE STATION HEADQUARTERS CONTRACT AMENDMENT (File No. 92-04)
Council considered a renegotiated contract in the amount of$235,796 with Ross Levin Macintyre and
Varner (RLM &V) to reflect the change in location of the headquarters fire station, the deletion of the
recreation administration offices and the addition of a training facility, and approve the Master Plan
Design Program.
Bob Neumann, Fire Chief, highlighted the agenda report.
Moved by Rappa/Romero to approve and authorize the Mayor to execute a renegotiated contract (A-
10-94-CC)in the amount of$235,796 and to approve MasterPlan Design Program;motion carried (4-0-
1, Mayor Pinard absent).
ADJOURNED TO A MEETING OF THE CAPITAL IMPROVEMENT BOARD
CALL TO ORDER THE ANNUAL MEETING OF THE CAPITAL IMPROVEMENT BOARD
ROLL CALL: Vice President Bill Roalman, Board Members Penny Rappa, Dave Romero, and Allen
K. Settle
ABSENT: President Peg Pinard
9. CAPITAL IMPROVEMENT BOARD (File No. 242)
The annual meeting of the Capital Improvement Board was held.
Moved by Rappa/Romero to approve the minutes of the meeting held on June 1, 1993;motion carried
(4-0-1, Mayor Pinard absent).
Moved by Rappa/Romero to re-elect President Pinard and elect Allen K. Settle as Vice President;
motion carried (4-0-1, Mayor Pinard absent).
Moved by Romero/Rapea to adopt Resolution No. 8303 authorizing the issuance sale of refunding
bonds for the purpose of refinancing 1986 Lease Revenue Bonds, authorizing the amendment and
restatement of 1986 lease with the City of San Luis Obispo, and approving related documents and
official actions; motion carried (4-0-1, Mayor Pinard absent).
Moved by Romero/Rappa to adjourn to the next regularly scheduled meeting of the Capital
Improvement Board; motion carried (4-0-1, Mayor Pinard absent).
UN
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CITY CLERK MEMORANDUM
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U:i3'`53:�:: i :
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April 16, 1996
TO: Mayor and City Council
FROM: Kim Condon, Assistant City Clerk
SUBJECT: CAPITAL IMPROVEMENT BOARD APPROVALS - APRIL 16, 1996
It has come to my attention that the item listed as CIB 2., "1996 Lease Bond Financing
Program," should be approved before item CIB 1., "1996 Lease Revenue Bonds." Therefore,
item CIB 2. should become No. C11. Also, since the meeting is convened for the City Council
and the Capital Improvement Board, there is no need to adjourn to a meeting of the Capital
Improvement Board. After approving C11, Council can automatically move on to approval of
CIB 1. These minor discrepancies will be corrected in the Action Update and Council Minutes.
Thank you.
c: John Dunn, City Administrative Officer
Jeff Jorgensen, City Attorney
Ken Hampian, Assistant City Administrative Officer
Bill Statler, Finance Director
Linda Asprion, Revenue Manager