HomeMy WebLinkAboutR-10869 NACIMIENTO WATER PROJECT REVENUE BONDS, APPROVING CERTAIN DISCLOSURE REGARDING THE CITY AND AUTHORIZING CERTAIN ACTIONS IN CONNECTION WITH SUCH REFUNDINGRESOLUTION NO. 10869 (2018 Series)
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, IN CONNECTION WITH THE REFUNDING OF
THE NACIMIENTO WATER PROJECT REVENUE BONDS,
APPROVING CERTAIN DISCLOSURE REGARDING THE CITY AND
AUTHORIZING CERTAIN ACTIONS IN CONNECTION WITH SUCH
REFUNDING
WHEREAS, the City Council (the "Council") of the City of San Luis Obispo (the "City")
has heretofore entered into a Nacimiento Project Water Delivery Entitlement Contract (the
"Delivery Contract") with the San Luis Obispo County Flood Control and Water Conservation
District (the "District"), in connection with the Nacimiento Water Project (the "Project") for the
supply of additional water for the use and benefit of the lands and inhabitants served by the City;
and
WHEREAS, on September 26, 2007, the SLO County Financing Authority (the
"Authority") issued $157,845,000 Nacimiento Water Project Revenue Bonds, 2007 Series A (the
"2007A Bonds") and $38,565,000 Nacimiento Water Project Revenue Bonds, 2007 Series B
(Taxable) (the "2007B Bonds," and together with the 2007A Bonds, the "2007 Bonds") in order
to finance the Project; and
WHEREAS, on August 19, 2015, the Authority issued $107,115,000 Nacimiento Water
Project Revenue Refunding Bonds, 2015 Series A (the "2015A Bonds") in order to refinance a
portion of the 2007A Bonds; and
WHEREAS, the District and the Authority have determined that it is necessary and
desirable to proceed with the refunding of all or a portion of the remaining 2007A Bonds (the
"Bond Issue") through the issuance and sale of Municipal Obligations (as defined in the Delivery
Contract); and
WHEREAS, in connection with such refunding, the Council has been presented with a
form of Preliminary Official Statement, together with an appendix containing statistical and other
descriptive information regarding the City (the "Appendix") and a form of Continuing Disclosure
Agreement (the "Continuing Disclosure Agreement"); and
NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis
Obispo as follows:
SECTION 1. The foregoing recitals are true and correct.
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Resolution No. 10869 (2018 Series) Page 2
SECTION 2. The Underwriter is authorized to use a Preliminary Official Statement and
Official Statement, each containing an Appendix A (or a revised form thereof) describing certain
statistical and other information of the City in the marketing and sale of the Authority's Refunding
Revenue Bonds (the "Bonds"), based upon information provided and to be provided by the City,
with such changes from the form of Preliminary Official Statement submitted to this City Council
as the City Manager, Director of Finance, or a designee thereof (each, an "Authorized
Representative") may determine to be in the best interests of the City. The City shall be responsible
for notifying the Authority and the Underwriter should any information regarding the City in said
Appendix materially change from the time of submission to the closing date of the Bond Issue.
SECTION 3. The form of Continuing Disclosure Agreement presented to and reviewed
by this meeting of the City Council is hereby approved, and the Authorized Representative of the
City is hereby authorized and directed to execute and deliver a Continuing Disclosure Agreement,
substantially in the form presented to and approved at this meeting of the Council, with such
changes therein as the Authorized Representative and the District may approve, such approval to
be evidenced by the signature of said Authorized Representative.
SECTION 4. In accordance with SB 450, good faith estimates of the following have been
obtained from the Underwriter and are set forth on Exhibit A attached hereto: (a) the true interest
cost of the Bonds, (b) the sum of all fees and charges paid to third parties with respect to the Bonds,
(c) the amount of proceeds of the Bonds expected to be received net of the fees and charges paid
to third parties and any reserves or capitalized interest paid or funded with proceeds of the Bonds,
and (d) the sum total of all debt service payments on the Bonds calculated to the final maturity of
the Bonds plus the fees and charges paid to third parties not paid with the proceeds of the Bonds.
SECTION 5. The Authorized Representatives of the City are hereby authorized and
directed, for and in the name and on behalf of the City, to do or cause to be done any and all things
and take any and all other actions in support of the issuance of the Bonds, including, without
limitation, the execution of certificates and ancillary documents and the delivery of opinions on
behalf of the City as may be reasonably required by the District, which they, or any of them, deem
necessary or advisable in order to consummate the purposes described herein.
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Resolution No. 10869 (2018 Series) Page 3
SECTION 6. This resolution shall take effect immediately upon its adoption.
Upon motion of Council Member Rivoire, seconded by Council Member Gomez, and on the
following roll call vote:
AYES: Council Members Gomez, Pease and Rivoire,
Vice Mayor Christianson and Mayor Harmon
NOES: None
ABSENT: None
The foregoing resolution was adopted this 6th day of March 2018.
Ma 4r Heidi Harrr/on
ATTEST:
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Carrie Gallagher
City Clerk
Ffistine Dietrick
Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this 13M day of '?Y]QAX,,A- , c20I R .
Carrie Gallagher
City Clerk
Resolution No. 10869 (2018 Series)
EXHIBIT A
GOOD FAITH ESTIMATES
The following information was obtained from Raymond James & Associates, Inc., as the
underwriter of the SLO County Financing Authority Nacimiento Water Project Revenue
Refunding Bonds, 2018 Series A (the "Bonds"), and is provided in compliance with Senate Bill
450 (Chapter 625 of the 2017-2018 Session of the California Legislature) with respect to the
Bonds:
It should be noted that the following information constitutes good faith estimates only as
of February 7, 2018. The actual interest cost, finance charges, amount of proceeds and total
payment amount may vary from the estimates below due to the timing of Bond sale, the amount
of Bonds sold, the amortization of the Bonds sold, and prevailing market interest rates at the time
of each sale. The date of sale and the amount of Bonds sold will be determined by the Authority
and the District based on need for project funds and other factors. The actual interest rates at which
the Bonds will be sold will depend on the bond market on the date and at the time of the sale. The
actual amortization of the Bonds will also depend, in part, on market interest rates on the date and
at the time of the sale. Market interest rates are affected by economic, national, international, and
other factors beyond the control of the Underwriter, the Authority, or the District.
1. True Interest Cost of the Bonds. Assuming the maximum aggregate principal
amount of the Bonds authorized ($30,000,000) are sold and based on market interest rates
prevailing at the time of preparation of this information, a good faith estimate of the true interest
cost of the Bonds, which means the rate necessary to discount the amounts payable on the
respective principal and interest payment dates to the purchase price received for the Bonds, is
3.73%.
2. Finance Charge of the Bonds. Assuming the maximum aggregate principal amount
of the Bonds authorized ($30,000,000) are sold and based on market interest rates prevailing at the
time of preparation of this information, a good faith estimate of the finance charge of the Bonds,
which means the sum of all fees and charges paid to third parties (or costs associated with the
Bonds), is $576,840.31, as follows:
a)
Underwriter's Discount
$134,975.00
b)
Credit Enhancement
90,090.33*
c)
Bond Counsel and Disbursements
85,000.00
d)
Underwriter's Counsel and Disbursements (Disclosure)
75,000.00
e)
Financial Advisor and Disbursements
45,000.00
f)
Rating Agencies
59,500.00
g)
Other Expenses/contingency (Trustee, Trustee's Counsel, Printer,
87,274.98
demographic information, etc.)
* A municipal bond insurance policy with respect to the Bonds will be obtained only if economically advantageous
to the Authority as determined by an Authorized Officer of the Authority.
EN
Resolution No. 10869 (2018 Series)
EXHIBIT A
3. Amount of Proceeds to be received. Assuming the maximum aggregate principal
amount of the Bonds authorized ($30,000,000) are sold and based on market interest rates
prevailing at the time of preparation of this information, a good faith estimate of the amount of
proceeds expected to be received by the Authority for sale of the Bonds less the finance charge of
the Bonds described in 2 above and any reserves or capitalized interest paid or funded with
proceeds of the Bonds, is $28,536,325.14.
4. Total Payment Amount. Assuming the maximum aggregate principal amount of
the Bonds authorized ($30,000,000) are sold and based on market interest rates prevailing at the
time of preparation of this information, a good faith estimate of the total payment amount, which
means the sum total of all payments the Authority will make to pay debt service on the Bonds plus
the finance charge of the Bonds described in paragraph 2 above not paid with the proceeds of the
Bonds, calculated to the final maturity of the Bonds, is $45,045,163.
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