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HomeMy WebLinkAbout03/21/2006, BUS 2 - MEETING OF THE CAPITAL IMPROVEMENT BOARD .JIEETING AGENDA San Luis Obispo Capital Improvement Board DATE _44),&ca ITEM #AL.5 AGENDA REPORT March 21, 2006 FROM: Bill Statler,Director of Finance &Information Technology Prepared by: Carolyn Dominguez,Finance Manager SUBJECT: MEETING OF THE CAPITAL IMPROVEMENT BOARD CAO RECOMMENDATION 1. Approve minutes of meeting held on April 5, 2005. 2. Elect officers for the Capital Improvement Board(President and Vice President). 3. Adopt a resolution approving the issuance of lease-revenue bonds to assist in financing the 919 Palm parking/offices project. 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 April 5,2005. 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 919 Palm parking/offices bonds. The key issues related to these 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 April 5, 2005 meeting 2. Resolution approving the issuance of lease-revenue bonds to assist in financing the 919 Palm parking/offices project G:Debt Financing/919 Palu✓CB Agenda Repan,3-21-06 Attachment MEETING OF THE CAPITAL IMPROVEMENT BOARD April 5, 2005 Finance Director Statler presented the staff report. Public Comments None. --end of public comments--- ACTION: omments---ACTION: Moved by Brown/Mulholland to: 1.Approve minutes of meeting held on March 16,2004. 2.Elect officers of the Capital Improvement Board(Mayor as President and Vice Mayor as Vice President). 3. Adopt Resolution No.9672(2005Series) approving the refinancing of the 1996 Lease Revenue Bonds.4.Adjourn to the next regular meeting. Motion carried 5 :0. The Capital Improvement Board meeting adjourned at 8:46 p.m. and the Council meeting reconvened. � - a Attachment RESOLUTION NO. (2006 Series) RESOLUTION OF THE BOARD OF DIRECTORS OF THE CITY OF SAN LUIS OBISPO CAPITAL IMPROVEMENT BOARD AUTHORIZING THE ISSUANCE AND SALE OF LEASE REVENUE BONDS TO PROVIDE FINANCING TO THE CITY OF SAN LUIS OBISPO FOR THE 919 PALM STREET PUBLIC PARKING AND CITY OFFICE PROJECT, AND APPROVING RELATED DOCUMENTS AND OFFICIAL ACTIONS WHEREAS, the City of San Luis Obispo (the "City") is proceeding to acquire and improve a building located at 919 Palm Street, to be used for public parking and City administrative office purposes (the"Project"); and WHEREAS, in order to provide funds to finance the acquisition and improvement of the Project, the City has proposed to lease the Project to the City of San Luis Obispo Capital Improvement Board (the `Board") under a Site Lease dated as of April 1, 2006 (the "Site Lease"), in consideration of the payment by the Board of an upfront rental payment (the "Site Lease Payment") which is sufficient to provide funds for such purposes; and WHEREAS, the Board proposes to issue and sell its City of San Luis Obispo Capital Improvement Board 2006 Lease Revenue Bonds (919 Palm Street Public Parking and City Office Project) in the aggregate principal amount of not to exceed $17,000,000 (the `Bonds") under an Indenture of Trust dated as of April 1, 2006 (the "Indenture"), between the Board and U.S. Bank National Association, as trustee (the "Trustee"), for the purpose of providing the funds to enable the Board to pay the Site Lease Payment to the City in accordance with the Site Lease; and WHEREAS, in order to secure the payments of principal of and interest on the Bonds, the Board proposes to lease the Project back to the City under a Lease Agreement dated as of April 1, 2006 (the "Lease Agreement"), under which the City is obligated to pay semiannual lease payments as rental for the Project; and WHEREAS, the Board is authorized to issue the Bonds and provide financial assistance to the City under Ordinance No. 1059 (1986 Series) adopted by the Council of the City on April 15, 1986 (the"Enabling Ordinance"); 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 $17,000,000, for the purpose of providing funds to finance the acquisition and improvement of the Project by the City. 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 financing of the Project, 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 ,;? �3 s Resolution No. (2006 Series) Page 2 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: • 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. • Site Lease,between the City as lessor and the Board as lessee, under which the City leases the Project to the Board in consideration of the payment of the Site Lease Payment which will be applied by the City to finance the acquisition and improvement of the Project. • Lease Agreement, between the Board as lessor and the City as lessee, under which the Board leases the Project back to the City and the City agrees to pay semiannual lease payments which are sufficient to provide revenues with which to pay principal of and interest on the Bonds when due; and • Assignment Agreement, 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 to Obtain Municipal Bond Insurance. The Board of Directors hereby directs the Chief Financial Officer to determine whether 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 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 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 net interest rate at which the Bonds are sold shall not exceed 5-3/4% per annum, and the Bonds shall be sold for a purchase price which is at least equal to 99.0% of the par amount 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 5 days prior to the date set for receipt of bids on the Bonds. Aftechment Z Resolution No. (2006 Series) Page 3 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 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. Attachment Resolution No. (2006 Series) Page 4 On motion of _ , seconded by and on the following roll call vote: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted on March 21, 2006. David F. Romero, President ATTEST: Audrey Hooper, Secretary APPROVED AS TO FORM`. Jonath P T well, Board Attorney I hereby certify that the foregoing Resolution was passed and adopted by the Board of Directors of the City of San Luis Obispo Capital Improvement Board at a special meeting thereof duly held on March 21, 2006, by a majority vote of all of its members. Audrey Hooper, Secretary