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Home My WebLink About05/06/2008, BUS 5 - MEETING OF THE CAPITAL IMPROVEMENT BOARD - EETING AGENDA �- L)ATE_- ITEM # San Luis Obispo Capital Improvement Board AGENDA REPORT April • O - April 15, 2008 FROM: Bill Statler, Director of Finance&Information Technology Debbie Malicoat,Finance Manager SUBJECT: MEETING OF THE CAPITAL IMPROVEMENT BOARD CAO RECOMMENDATION 1. Approve minutes of meeting held on March 21,2006. 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 Tank Farm gravity sewer, lift station and force main 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 and infrastructure. 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 21, 2006. 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 Tank Farm Project Financing. The key issues related to this financing 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 21, 2006 meeting 2. Resolution approving the financing for the Tank Farm gravity sewer, lift station and force main project G:Debt Financing,/2008 Tank Farm Lift Station/CIB agenda report 5-6-08 Attsichtent — MEETING OF THE CAPITAL IMPROVEMENT BOARD March 21, 2006 Finance Director Stader presented the staff report. Public Comments None. —end of public comments ACTION: Moved by Ewan/Settle to: 1) Approve minutes of the meeting held on April 5, 2005. 2) Elect officers for the Capital Improvement Board (Dave Romero, President and Allen Settle, Vice President). 3) Adopt Resolution No. 9780 (2006 Series) approving the issuance of lease-revenue bonds to assist in financing the 919 Palm parking/offices project. 4) Adjourn to the next regular meeting; motion carried 3:0:2(Brown, Mulholland absent). The Capital Improvement Board meeting adjourned at 4:14 p.m. and the Council meeting reconvened. � 'oL Attachment RESOLUTION NO. (2008 Series) RESOLUTION OF THE BOARD OF DIRECTORS OF THE CITY OF SAN LUIS OBISPO CAPITAL IMPROVEMENT BOARD APPROVING DOCUMENTS AND ACTIONS RELATING TO THE FINANCING OF TANK FARM WASTEWATER IMPROVEMENT PROJECT WHEREAS, the City of San Luis Obispo (the "City") owns and operates facilities and property for the collection, treatment and disposal of wastewater within the service area of the City (the "Wastewater Enterprise"), and is proceeding to finance the acquisition and construction of improvements to the Wastewater Enterprise known as the Tank Farm Gravity Sewer, Lift Station and Force Main Project(the"Project'); and WHEREAS, in order to provide funds to finance the acquisition and construction of the Project, the City has proposed to enter into an Installment Sale Agreement with the City of San Luis Obispo Capital Improvement Board (the "Board") under which the Board agrees to provide financing for the Project and to sell the completed Project to the City in consideration of the agreement by the City to pay periodic Installment Payments as the purchase price of the Project;and WHEREAS, the Installment Payments will be secured by a pledge of and lien on the net revenues of the Wastewater Enterprise on a parity with the pledge, lien and security interest which secure certain outstanding obligations of the City under loan agreements with the State Water Resources Control Board; and WHEREAS, the Board proposes to raise funds for the Project by assigning its rights under the Installment Sale Agreement, including the right to receive Installment Payments; to a bank or other lending institution; and WHEREAS, the Board of Directors of the Board wishes at this time to approve all proceedings to which it is a party relating to the financing of the Project; NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the City of San Luis Obispo Capital Improvement Board as follows: SECTION 1. Am)roval of Financing Plan and Installment Sale Agreement. The Board of Directors hereby approves the financing plan for the Project as set forth in this Resolution. To that end, the Board of Directors hereby approves the Installment Sale Agreement in the form thereof 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, the final form of the Installment Sale Agreement. SECTION 2. Assignment by Board. The Board of Directors hereby approves the assignment by the Board of its rights under the Installment Sale Agreement, including the right to receive the Installment Payments, to a bank or other lending institution that is selected by the Board upon the advice of the Fieldman, Rolapp & Associates, as financial adviser to the City and the Board, which selection may be made on the basis of limited competitive bidding, by sole designation or any other means deemed advisable by the Chief Financial Officer. The Board of Directors hereby delegates authority to the Chief Financial Officer to accept an offer from a bank or other lending institution to provide financing for the Project by entering into an Assignment Agreement with the Authority in the form thereof on file with the Secretary together with any changes therein or additions thereto deemed advisable by the Chief Financial Officer, whose S- 3 i Affachffient Z Resolution No. (2008 Series) Page 2 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, the final form of the Assignment Agreement. SECTION 3. 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 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 4. 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 on May 6, 2008. President David F. Romero ATTEST: Audrey Hooper, Secretary APPROVED AS TO FORM: G n Jo athan . Lowell, Board Attorney tt®®}■�,■gypachmen.pia iT t Resolution No. (2008 Series) Page 3 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 May 6, 2008, by a majority vote of all of its members . Audrey Hooper, Secretary