HomeMy WebLinkAbout07/17/2007, C6 - INTENTION TO ISSUE TAX EXEMPT BONDS FOR PUBLIC SAFETY DISPATCH CENTER AND RADIO SYSTEM UPGRADE PROJ counat Mech°D� 7-17-2007
j agenda Report lu.N�.b.
CITY OF SAN LUIS O B I S P O
FROM: Bill Statler,Director of Finance &Information Technology q9�
Carolyn Dominguez,Finance Manager
SUBJECT: INTENTION TO ISSUE TAX EXEMPT BONDS FOR PUBLIC SAFETY
DISPATCH CENTER AND RADIO SYSTEM UPGRADE PROJECTS
CAO RECOMMENDATION
Adopt a resolution of intention to issue tax exempt bonds in financing the public safety dispatch
center and radio system upgrade projects and to reimburse from the proceeds costs incurred prior
to their issuance.
DISCUSSION
On April 17, 2007, the Council approved the site plan and design for the public safety dispatch
center, including the Fire Storage Building. At that time, the progress on both the dispatch center
and the radio system upgrade was discussed. Construction will most likely occur early in 2008,
and we will not issue bonds until then. In the interim, it is possible that some limited costs
related to the projects may be incurred. In order to preserve our ability to include these costs in
the subsequent bond issue,federal rules require adoption the attached resolution.
CONCURRENCES
The City's bond counsel (Jones Hall) and financial advisor (Fieldman Rolapp) concur with this
recommendation.
FISCAL IMPACT
There are no direct impacts to approving this resolution: it simply preserves our option of
including in the subsequent bond issue any costs related to the project that might be incurred
prior to its issuance. As summarized below, the total budget for both projects is $11.3 million,
and of this amount, $10.4 million is to be funded from the sale of bonds:
Dis atch.Cen=Radio Total
FEMA Grant Funds 212,0 424,000
Pay-As-You-Go Appropriations 450,0 500,000
Proceedsfrom Sale of Bonds 6,547,0 10,402,900
Total $7,209,0 $11,326,900
ATTACHMENT
Resolution of intention to issue tax exempt bonds for the dispatch center and radio system
upgrade projects
Finance/Debt Financing/Dispatch Center and Radio System/Council Agenda Report 7-17-07
'. ATTACHMENT
RESOLUTION NO. (2007 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
DECLARING ITS INTENTION TO ISSUE TAX-EXEMPT OBLIGATIONS
TO ASSIST IN FINANCING THE DISPATCH CENTER AND RADIO SYSTEM UPGRADE
PROJECTS AND THAT A PORTION OF THE PROCEEDS MAY BE USED TO
REIMBURSE RELATED EXPENDITURES INCURRED PRIOR TO THEIR ISSUANCE
WHEREAS, the Council of the City of San Luis Obispo (the "City") is undertaking
proceedings to acquire, furnish and equip a public safety communications and emergency center
facility, construct a storage facility at Fire Station No. 1 and upgrade its radio system in the City
(the "Project"); and
WHEREAS, in order to provide funds to finance the Project the City, either on its own
behalf or through the City of San Luis Obispo Capital Improvement Board (the "Board"), intends
to issue and sell its tax-exempt Lease Revenue Bonds in the aggregate principal amount of
approximately$12 million for the Project(the"Bonds"); and
WHEREAS, in order to use the proceeds of the Bonds to reimburse advances made by
the City for the Project before the date of issuance of the Bonds, but not more than sixty (60)
days before the date of adoption of this Resolution, Section 1.150-2 of the United States Income
Tax Regulations requires that Council declare its intention to reimburse such advances from the
proceeds of the Bonds; and
WHEREAS, it is in the public interest and for the public benefit that the City declare its
official intent to reimburse the expenditures referenced herein.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Declaration of Intent. The Council hereby declares that it reasonably
expects the Bonds to be issued by the City or the Board, and that a portion of the proceeds
thereof may be used to reimburse expenditures made by the City for the Project before the date of
issuance of the Bonds, and not more than sixty (60) days before the date of adoption of this
Resolution. The Bonds shall be issued in an aggregate principal amount which is sufficient to
raise funds for the Project in the approximate amount of$10.4 million.
SECTION 2. Effective Date. This Resolution shall take effect from and after the date
of its passage and adoption.
C'La-2
ATTACHMENT
Resolution No. (2007 Series)
Page 2
On motion of seconded by
and on the following roll call vote:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted on July 17, 2007.
David F. Romero, Mayor
ATTEST:
Audrey Hooper, City Clerk
APPROVED AS TO FORM:
Jo . L.owelI
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