HomeMy WebLinkAbout10-01-2013 b6 cib meeting
MEETING DATE: October 1, 2013
ITEM: B6
October 1, 2013
FROM: Wayne Padilla, Director of Finance & Information Technology
Carrie Mattingly, Utilities Director
SUBJECT: MEETING OF THE CAPITAL IMPROVEMENT BOARD TO ADOPT A RESOLUTION
APPROVING DOCUMENTS AND ACTIONS RELATING TO THE FINANCING OF THE
WATER RECLAMATION FACILITY ENERGY EFFICIENCY PROJECT
RECOMMENDATION
1. Adopt a resolution approving documents and actions related to the private placement financing of the
construction costs related to the energy efficiency improvements project at the Water Reclamation Facility.
2. 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. At the September 17, 2013 meeting, the Board took action to elect the Mayor as
President and the Vice Mayor as Vice President in accordance with the Board By-laws. The minutes of the May 8,
2012 meeting were also approved. At this evening’s meeting, the Board is being asked to:
1. Adopt the resolution approving documents and actions related to the private placement financing in the
amount of $7,479,000 to fund a portion of the costs associated with the construction of energy efficiency
improvements at the Water Reclamation Facility. A full discussion of the key issues related to this financing
is provided in the Council Agenda Report separately prepared for this item and included in this Agenda. It is
staff’s recommendation that the proposed financing should be approved in order to take advantage of the low,
fixed interest rate and the opportunity to secure the financing ahead of the start of construction for this project.
The Board is being asked to approve documents related to the financing which include an Installment Sale
Agreement and an Assignment Agreement, which were prepared and substantively approved by bond counsel
2. Adjournment. Adjourn the Capital Improvement Board until the Board’s next meeting is scheduled.
ATTACHMENTS
1. Capital Improvement Board Resolution
San luis Obispo capital Improvement Board
agenda report
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RESOLUTION NO.
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 WATER RECLAMATION FACILITY ENERGY
EFFICIENCY 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 installation of improvements to its water reclamation facility, consisting
generally of the onsite cogeneration of energy, solids management, upgrading and
optimizing aging infrastructure, efficient lighting, and process system controls (the
“Project”); and
WHEREAS, the City Council has been presented with a financing plan for the
installment sale financing of the Project on a private placement basis with U.S. Bancorp
Government Leasing and Finance, Inc., as designee of Green Campus Partners LLC
(the “Lender”), through the use of an installment sale agreement between the City and
the City of San Luis Obispo Capital Improvement Board (the “Board”); and
WHEREAS, the final form of the legal documentation relating to the financing has
been prepared by bond counsel, and the Board of Directors wishes at this time to
approve such legal documentation;
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the City of
San Luis Obispo Capital Improvement Board as follows:
SECTION 1. Approval of Installment Sale Agreement. The Board of Directors
hereby approves the Installment Sale Agreement relating to the financing of the Project,
between the City and the Board, in the form thereof on file with the Secretary together
with any changes therein or additions thereto deemed advisable by the Executive
Director or the Chief Financial Officer (each, an “Authorized Officer”); provided that the
execution thereof by an Authorized Officer shall be conclusive evidence of the approval
of any such changes or additions. An Authorized 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 the Lender. Such assignment shall be
made pursuant to the terms and provisions of the Assignment Agreement in the form
thereof on file with the Secretary together with any changes therein or additions thereto
deemed advisable by an Authorized Officer; provided that the execution thereof by an
Authorized Officer shall be conclusive evidence of the approval of any such changes or
additions. An Authorized Officer is hereby authorized and directed for and in the name
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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.
AYES:
NOES:
ABSENT:
President
Secretary
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On motion of ___________________, seconded by ____________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this 1st day of October, 2013.
President
ATTEST:
Secretary
APPROVED:
Executive Director
Board Attorney
Chief Financial Officer
APPROVED AS TO FORM:
Board Attorney
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