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HomeMy WebLinkAbout03/03/2009, B1 - MEETING OF THE CAPITAL IMPROVEMENT BOARD M TING AGENDA. DATE ITEM # San Luis Obispo Capital Improvement Board AGENDA ® s • March 3,2009 FROM: Bill Statler;Director of Finance&Information Technology Debbie Malicoat,Finance Manager SUBJECT: MEETING OF THE CAPITAL IMPROVEMENT BOARD RECOMMENDATION 1. Approve minutes of meeting held on May 6, 2008. 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 Public Safety Communications and Emergency Operations Center 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 May 6, 2008. 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 Public Safety Communications and Emergency Operations Center 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 eeting:ATTACHMENTS 1. Minutes from May 6, 2008 meeting 2. Resolution approving the financing for the Public Safety Communications and Emergency Operations Center project G:Debt Financing/2009 Dispatch Center and Radio Systern/CIB Agenda 3-3-09 MEETING OF THE CAPITAL IMPROVEMENT BOARD May 6, 2008 Finance and Information Technology Director Statler presented the staff report for this item simultaneously with item B5. Public Comments No comments were forthcoming. --end of public comments --- ACTION: Moved by Mulholland/Settle to: 1) Adopt Resolution No. 9978 (2008 Series) approving an installment sales agreement with the City of San Luis Obispo Improvement Board to assist in financing the Tank Farm Gravity Sewer, Lift Station and Force Main Project. 2) Review the project budget and funding sources downward based on favorable bid results;motion carried 5:0: City Clerk Hooper called the meeting of the Capital Improvement Board to order. Council Members serve as members of the Capital Improvement Board and all were present ATTACHMENT RESOLUTION NO. (2009 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 A PUBLIC SAFETY COMMUNICATIONS AND EMERGENCY OPERATIONS CENTER FACILITY, AND APPROVING RELATED DOCUMENTS AND OFFICIAL ACTIONS WHEREAS, the City of San Luis Obispo (the"City") is proceeding to acquire, construct, furnish and equip a new public safety dispatch center and Fire Department storage facility located in the City, and improvements to the City's radio system for public safety communications (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 existing City Hall and Police Station (collectively, the "Leased Property") to the City of San Luis Obispo Capital Improvement Board (the "Board") under a Site Lease dated as of March 1, 2009 (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 2009 Lease Revenue Bonds (Public Safety Communications and Emergency Operations Center Project) in the aggregate principal amount of not to exceed $10,800,000 (the "Bonds") under an Indenture of Trust dated as of March 1, 2009 (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 Leased Property back to the City under a Lease Agreement dated as of March 1, 2009 (the "Lease Agreement"), under which the City is obligated to pay semiannual lease payments as rental for the Leased Property; 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 City 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 $10,800,000, 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 461-3 Resolution No. (2009 Series) Page 2 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 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 Leased Property 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 Leased Property 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. Sale of Bonds. The Board of Directors hereby authorizes and directs the competitive public sale of the Bonds in accordance with the Notice of Sale 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 of Sale. The net interest rate at which the Bonds are sold shall not exceed 6.25% per annum, and the Bonds shall be sold for a purchase price which is at least equal to 98.75% of the par amount of the Bonds. Notwithstanding the foregoing, the Board of Directors hereby authorizes the Bonds to be sold on a negotiated basis to an underwriter selected by the Chief Financial Officer upon the advice of the financial advisor, in the event that no bids are submitted at the competitive sale or all submitted bids are rejected pursuant to the terms of the Notice of Sale. In such case, the 8 /_ `f Resolution No. (2009 Series) Page 3 Bonds shall be sold pursuant to a Bond Purchase Agreement between the City and the underwriter prepared by bond counsel, which contains all of the material terms and provisions of the Bonds as set forth in the Notice of Sale. The Chief Financial Officer is hereby authorized and directed to approve a bid from an underwriter for the purchase of the Bonds (provided such bid is acceptable to the Chief Financial Officer and is within the parameters set forth above in this Section 4) and to execute and deliver the final form of such Bond Purchase Agreement on behalf of the Board. 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 five days prior to the date set for receipt of bids on the Bonds. Such publication is only required to be made in connection with the competitive public sale of the Bonds under Section 4, and not in connection with any negotiated sale of 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 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. Resolution No. (2009 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 3, 2009. David F. Romero, President ATTEST: Audrey Hooper, Secretary APPROVED AS TO FORM: P. Lowell, 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 3, 2009,by a majority vote of all of its members. Audrey Hooper, Secretary