HomeMy WebLinkAbout11/07/1995, C-8 - FINANCING FOR CITY HALL SEISMIC SAFETY/HVAC IMPROVEMENTS AND MISSION PLAZA EXPANSION VE
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COUNCIL AGENDA EPORT N MB
FROM: Bill Statler, Director of Financ ,
Prepared by: Linda Asprion, R venue Manager�{f'�
SUBJECT: FINANCING FOR CITY HALL SEISMIC SAFETY/HVAC IMPROVEMENTS
AND MISSION PLAZA EXPANSION
CAO RECOMMENDATION
Adopt a resolution preserving the City's ability to debt finance $1,500,000 for City Hall
seismic safety/HVAC improvements and the mission plaza expansion.
DISCUSSION
As discussed on pages A-6 and F-2 of the 1995-97 Financial Plan, the City proposes to
combine City Hall seismic safety/HVAC improvements ($900,000) and Mission Plaza
expansion ($455,000) with a debt financing already scheduled for the balance of the
Headquarters Fire Station and Performing Arts Center projects not funded through pay-as-you-
go resources ($1.7 million) for a bond issue of approximately $3,055,000. If approved by
Council, the purchase of the Matthew's property will also be included in this bond issue, for
total net proceeds of about $4.1 million. Prior to the issuance of bonds, it is likely that we
may incur some preliminary costs for these projects; by adopting this resolution, Council is
preserving the City's ability to debt finance the funding for City Hall seismic safety/HVAC
improvements and the Mission Plaza expansion at a later date (up to two years from the final
payment date, or in combination with the other projects which may result in a Spring of 1996
bond issue). Similar resolutions for the other projects have already been adopted by the
Council.
FISCAL IMPACT
There is no fiscal impact associated with adopting this resolution. This resolution merely
retains the City's option to debt finance City Hall seismic safety/HVAC improvements and the
Mission Plaza expansion at a later date.
CONCURRENCES
The City's bond counsel - Jones Hall Hill & White - drafted the proposed resolution and
concurs with its adoption by Council.
ATTACHMENT
Resolution preserving the City's ability to debt finance City Hall seismic safety/HVAC
improvements and Mission Plaza expansion.
RESOLUTION N0. (1995 SERIES)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
DECLARING INTENTION TO REIMBURSE EXPENDITURES
RELATING TO CITY HALL SEISMIC SAFETY/HVAC IMPROVEMENTS
AND MISSION PLAZA EXPANSION
FROM THE PROCEEDS OF OBLIGATIONS OF THE CITY
AND DIRECTING CERTAIN ACTIONS
WHEREAS, the City expects to make future advances to finance projects consisting of
City Hall seismic safety/HVAC improvements and Mission Plaza expansion (the "Projects"),
and in order to provide funds to finance the Projects the Council intends to issue debt for such
Projects and to use a portion of the proceeds of such debt to reimburse expenditures made for
the Projects prior to the issuance of the debt; and
WHEREAS, United States Income Tax Regulations section 1.150-2 provides generally
that proceeds of tax-exempt debt are not deemed to be expended when such proceeds are used
for reimbursement of expenditures made prior to the date of issuance of such debt unless
certain procedures are followed, one of which is a requirement that (with certain exceptions),
prior to the payment of any such expenditures, the issuer declare an intention to reimburse such
expenditures; 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. The Council hereby declares that it reasonably expects to issue
obligations (the "Obligations)) for the purpose of paying costs of(i)removing the existing City
Hall roof, strengthening connections between the roof trusses and walls, installing bracing for
interior partitions and a new structural steel roof deck, and reinstalling the roof; (ii) removing
the existing City Hall steam boiler and radiators, replacing the electrical switchboard to provide
an adequate power supply for the new HVAC equipment, installing a new boiler for heating
and chiller for air conditioning with new air handlers, ductwork, air volume terminal boxes,
and an energy management system; and (iii) expanding Mission Plaza on the Monterey Street
side of San Luis Obispo Creek between Broad and Nipomo Streets by acquiring property and
installing retaining walls, pedestrian paths, a pedestrian bridge, an amphitheater, landscaping,
fencing, and lighting.
SECTION 2. The Council hereby declares that it reasonably expects (i) to pay certain
costs of the Projects prior to the date of issuance of the Obligations and (ii) to use a portion
of the proceeds of the Obligation for reimbursement of expenditures for the Projects that are
paid before the date of issuance of the Obligations.
C�g- 2
SECTION 3. The maximum principal amount of the Obligations is $1,500,000.
On motion of , and seconded by
and on the following roll call vote;
AYES:
NOTES:
ABSENT:
the foregoing Resolution was passed and adopted this day of November, 1995.
Mayor Allen Settle
ATTEST:
City Clerk
APPROVED:
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