HomeMy WebLinkAbout04/05/2005, BUS 5 - MEETING OF THE CAPITAL IMPROVEMENT BOARD MF--!W\GENDA
DA rtEM #
San Luis Obispo Capital Im rovement Board
AGENDA • s
April 5,2005
FROM: Bill Statler,Director of Finance&Information Technology °i
Carolyn Dominguez, Finance Manager
SUBJECT: MEETING OF THE CAPITAL IMPROVEMENT BOARD
CAO RECOMMENDATION
1. Approve minutes of meeting held on March 16, 2004:
2. Elect officers for the Capital Improvement Board(President and Vice President).
3. Adopt a resolution approving the refinancing of the 1996 Lease Revenue Bonds.
4. Adjourn to the next regular meeting.
DISCUSSION
In April 1986, the City of San Luis Obispo Capital Improvement Board was established as a public
authority to implement financings for constructing and improving City facilities. The Council serves
as the Board of Directors for this agency. The following four actions are before the Board tonight:
1. Approval of Minutes from March 16, 2004. Minutes from the Board's last meeting are
attached for approval. These minutes are based on the regular Council meeting minutes already
approved by.the Council for this date.
2. Election of Officers. In keeping with past practice, it is recommended that the Mayor serve as
President and the Vice-Mayor serve as Vice-President.
3. Approve Refmancing the 1996 Lease Revenue Bonds. The key issues related to refinancing
the, 1996 Lease Revenue Bonds are fully described in the Council Agenda Report separately
prepared for this item.
4. Adjournment. Adjourn to the next regular meeting.
ATTACHMENTS
1. Minutes from March 16,2004 Meeting
2. Resolution Approving the Refinancing of the 1996 Lease Revenue Bonds
Q Debt Financing/2005 Refinancing/Cr8 Agenda Report,45-05 l
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City Council Meeting Page 5
Tuesday, March 16,2004-7:00 p.m.
ACTION: Moved by Mulholland/Ewan to adopt Resolution No.9539 2004 Series to
1)amend the City's Master Fee Schedule to establish fees for posting advertising
banners at the San Luis Obispo Baseball Stadium at$25.00 for a banner 4 feet by 8
feet or less and$50.00 for banner larger than 4 feet by 8 feet. 2)Allocate fees
received to the General Fund; motion carried 5:0.
2. FILM ORDINANCE, REGULATIONS AND FILM APPLICATION FEE.
Staff requested that this item be continued until May 0 to allow time for the Promotional
Coordinating Committee to review and comment on the draft ordinance.
ACTION: Moved by Settle/Mulholland to continue this Item to May 4,2004; motion
carried 5:0.
BUSINESS ITEMS
3. REFINANCING 1994 LEASE REVENUE BONDS.
Finance Director Statler presented the staff report.
There were no comments from the public.
ACTION: Moved by Settle/Mulholland to adopt Resolution No. 9540(2004 Series)
approving the refinancing of the 1994 Lease Revenue Bonds; motion carried 5:0.
' At 8:50 pm.,the Co conven aptrove rd.
4. MEETING OF THE CAPITAL IMPROVEMENT BOARD.
Mayor Romero called the meeting to order.
Finance Director Statler and Finance Manager Dominguez presented the staff report.
There were no comments from the public.
ACTION: Moved by Ewan/Mulholland to 1)Approve minutes of meeting held on
June 4,2002; motion carried 4:0:1 (Mayor Romero abstained as he was not a board
member of the CIB on that date.) 2)Elect officers for the Capital Improvement
Board (President and Vice President). 3)Adopt Resolution No.9541 (2004 Series)
approving the refinancing of the 1994 Lease Revenue Bonds. 4)Adjourn to the next
regular meeting; motion carried 5:0.
President Romero adjourned the meeting at 8:52 p.m.
e Council reconvened at 8:53 p.m.
5. DOWNTOWN PED STRIAN LIGHT STANDARD.
Public Works Director McCluskey and AssociateEngineerFraser presented the staff report.
tPublic Comments
90
RESOLUTION NO. (Series 2005) Attachment
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
CITY OF SAN LUIS OBISPO CAPITAL IMPROVEMENT BOARD
AUTHORIZING THE ISSUANCE AND SALE OF 2005 REFUNDING LEASE
REVENUE BONDS IN THE MAXIMUM PRINCIPAL AMOUNT OF
$6,700,000 FOR THE PURPOSE OF REFINANCING ITS 1996 BONDS,
AND APPROVING RELATED DOCUMENTS AND OFFICIAL ACTIONS
WHEREAS, the Council of the City of San Luis Obispo (the "City") has previously
adopted its Ordinance No. 1059 (1986 Series) on April 15, 1986 (the "Enabling 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 Board has previously issued its 1996 Lease Revenue Bonds in the
aggregate principal amount of$7,100,000 (the "1996 Bonds") under the Enabling Ordinance for
the purpose of financing the construction of a fire station and headquarters, land acquisition,
seismic and other improvements to the City Hall and the acquisition of street lighting facilities;
and
WHEREAS, the 1996 Bonds are subject to redemption in full on June 1, 2006, and due
to favorable conditions in the municipal bond market, the City and the Board wish to realize
interest rate savings by refinancing the outstanding 1996 Bonds at this time;and
WHEREAS, in order to provide funds for that purpose, the Board wishes to authorize
the issuance and sale of its 2005 Refunding Lease Revenue Bonds in the maximum principal
amount of $6,700,000 (the "Bonds") under the provisions of Enabling Ordinance, and to
authorize the execution and delivery of all related financing documents;
NOW,THEREFORE,BE IT RESOLVED by the Board of Directors of the City of San
Luis Obispo Capital Improvement Board as follows:
SECTION 1. Authorization of Bonds. The Board of Directors hereby authorizes the
issuance of the Bonds under the Enabling Ordinance in the maximum principal amount of
$6,700,000, for the purpose of providing funds to refinance the outstanding 1996 Bonds in full.
The Bonds shall be issued under the Indenture of Trust which is approved below.
SECTION 2. Approval of.Related Financing Agreements. The Board of Directors
hereby approves each of the following agreements required for the issuance and sale of the
Bonds and the refinancing of the 1996 Bonds, in substantially the respective forms on file with
the Secretary together with any changes therein or additions thereto deemed advisable by the
Chief Financial Officer, whose execution thereof shall be conclusive evidence of the approval of
any such changes or additions.. The Chief Financial Officer 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. Indenture of Trust, between the Board and U.S. Bank National Association, as trustee
(the "Trustee"), setting forth the terms and provisions relating to the Bonds.
S'.3
Attachment Z .
Resolution No. (2005 Series)
Page 2
b. First.Amended and Restated Lease Agreement, between the Board as lessor and the
City as lessee, which amends and restates the 1996 Lease for the purpose (among
others) of incorporating provisions relating to the Bonds and reducing the amount of
annual lease payments required to be paid by the City thereunder to reflect the
interest rate savings resulting from the refinancing;
c. Assignment and Termination Agreement, between the Board and the Trustee,
whereby the Board assigns certain of its rights under the First Amended and Restated
Lease Agreement to the Trustee for the benefit of the Bond owners, and the Board the
Trustee terminate the assignment previously made for the security of the 1996 Bonds;
and
d. Irrevocable Refunding Instructions, given by the Board to U.S. Bank National
Association, as trustee for the 1996 Bonds, providing the investment and
administration of funds to refinance the 1996 Bonds.
SECTION 3. Authorization to Obtain.Municipal Bond Insurance. The Board of
Directors hereby directs the Chief Financial Officer to determinewhether it is feasible and in the
best interests of the Board to obtain municipal bond insurance for the Bonds. If the Chief
Financial Officer determines that it is in the best interests of the Board to obtain such insurance,
the Chief Financial Officer is authorized to accept a commitment from a municipal bond insurer
to issue such insurance, in the name and on behalf of the Board.
SECTION 4. Authorization of Authorization of Competitive Sale of Bonds.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 behalf of the
Board to accept the best bid for the sale of the Bonds, as determined in accordance with the
Notice Inviting Bids. The Bonds shall be sold at such price, and at such rates of interest, so as to
produce net present value savings to the Board and the City at least equal to 5% of the
outstanding principal amount of the 1996 Bonds which will be refunded from the proceeds of the
Bonds.
SECTION 5. Publication of Notice. Jones Hall, A Professional Law Corporation, as
bond counsel to the Board and the City, 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 Chief Financial Officer, to be
published once in The Bond Buyer. Such publication shall be made not later than 15 days prior
to the date set for receipt of bids on the Bonds.
SECTION 6. Official Statement. The Board of Directors hereby approves the
preliminary Official Statement describing the Bonds in substantially the form 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 15c2-12 of the Securities Exchange Act of 1934. Distribution of the r ('
' `f
Affachment
Resolution No. (2005 Series)
Page 3
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 7. Official Actions. The President, 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 leases,
assignments, certificates, requisitions, agreements, notices, consents, instruments of conveyance,
warrants and other documents, which they or any of them deem necessary or appropriate in order
to consummate any of the transactions contemplated by the agreements and documents approved
under 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 if such officer is absent or unavailable.
SECTION 8. Effective Date. This Resolution shall take effect immediately upon its
passage and adoption.
Upon motion of , seconded by
and on the following roll call vote:
AYES:
NOES:
ABSENT:
the foregoing resolution was adopted on April 5, 2005.
David F. Romero, President
ATTEST:
Audrey Hooper, Secretary
APPROVED AS TO FORM:
Jo athan . Lowell, Board Attorney