HomeMy WebLinkAbout09/21/1999, 1 - 1999 LEASE REVENUE BONDS council
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CITY OF SAN LUIS OBISPO
FROM: Bill Statler,Director of Finance
Prepared By: Linda Asprion, Revenue Manager
SUBJECT: 1999 LEASE REVENUE BONDS
CAO RECOMMENDATION
® Approve minutes of meeting held on June 1, 1999.
® Adopt a resolution approving the sale of the.1999 Lease Revenue Bonds.
DISCUSSION
In June 1986, the City of San Luis Obispo Capital Improvement Board was established as a
public .authority to assist in implementing debt financing for building and improving various
public facilities. The Council.serves as the Board of Directors for this agency. The following
two actions are before the Board.tonight:
® Approval of minutes from June 1, 1999. Minutes from the Board''s last meeting are attached
for approval based on those already adopted by.the Council for this meeting.
Approval.of 1999 Lease Revenue Bond Program. The key issues related to the 1999 lease
revenue bond program are fully described in the Council Agenda Report separately prepared
for this item.
ATTACHMENTS
® Minutes from June 1; 1999 meeting
■ Resolution approving the sale of the 1909 lease revenue,bonds
AVAILABLE FOR REVIEW IN THE COUNCIL OFFICE
■ Notice Inviting Bids
® Notice of Intention to Sell Bonds
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City Council Meeting Page 3
Tuesday,June 1,1999-6:00 p.m.
Enhanced Promotional funds to the Chamber of Commerce for the creation of press
kit folders to be used for City tourism promotion; motion carried 5:0.
C7. SAN LUIS OBISPO POLICE OFFICERS'ASSOCIATION MEMORANDUM OF
AGREEMENT. (File No.509-04)
ACTION: Moved by SchwartrJRomero to adopt Resolution No.8938 approving the
Memorandum of Agreement; motion carried 5:0.
C8. FINAL PASSAGE OF ORDINANCE NO. 1353 ADOPTING THE LATEST EDITIONS OF
THE CONSTRUCTION AND FIRE CODES. (File No.20545)
ACTION: Moved by SchwartrJRomero to grant final passage to Ordinance No.1363
(1999 Series)thereby: 1) Repealing Chapters 15.04,15.08,1520,and 15.24 of the San
Luis Obispo Municipal Code. 2) Creating new Chapters 15.02,15.04,and 15.08
adopting the 1998 editions of the California Building,Mechanical,Plumbing,Electrical,
and Fire Codes,the 1997 editions of the Uniform Administrative,Housing,Dangerous
Building,Building(Volume 3),and Fin:(Volume 2)Codes,and the 1997 edition of the
Uniform Code for Building Conservation,with amendments;motion carried 5:0.
APPOINTMENT
Al. APPOINTMENTS TO THE PERFORMING ARTS CENTER ART ADVISORY
COMMITTEE. (File No.302-07)
City Administrator Dunn presented the staff report.
ACTION: Moved by Ewan/Marx to reappoint Wilda Rosene and appoint Dick DeLong
to be the City's representatives to the Performing Arts Center Art Advisory
Committee; motion carried 5:0.
Mayor Settle adjourned the meeting at 7:18 p.m.to the Annual Meeting of the Capital
Improvement Board.
CAPITAL IMPROVEMENT BOARD �.
1
Roll Cali: Board Members John Ewan,Jan Howell Marx, Ken Schwartz, Dave
Romero,and Allen K.Settle
CAPITAL IMPROVEMENT BOARD ANNUAL MEETING
Finance Director Statler provided the staff report.
ACTION: Moved by Ewan/Schwartz to approve the minutes of the meeting held on
June 3, 1997; and,elect Mayor Settle and Vice Mayor Romero as the officers for the
Capital Improvement Board (President and Vice President); motion carried 5:0. �-
Mayor Settle adjourned the Annual Meeting of the Capital Improvement Board at 7:19 p.m.
and reconvened the Regular Council Meeting.
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RESOLUTION NO. (1999 Series)
A 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 IN THE MAXEY UM PRINCIPAL
AMOUNT OF $13,300,000 FOR THE PURPOSE OF PROVIDING FINANCING
TO THE CITY OF SAN LUIS OBISPO, AND APPROVING RELATED
DOCUMENTS AND OFFICIAL ACTIONS
WHEREAS, THE City Council of the City of San Luis Obispo (the "City") has
previously adopted its Ordinance No. 1059 (1986 Series) on April 15, 1986 (the "Ordinance"),
establishing the City of San Luis Obispo Capital Improvement Board (the `Board") for the
purpose of assisting the City in the financing of public improvements; and
WHEREAS, the City has previously financed the acquisition and the construction of
improvements to the water treatment and distribution enterprise of the City (the "Water System")
from the proceeds of the Certificates of Participation dated as of December 1, 1988, delivered in
the aggregate original principal amount of$5,000,000 (the 111988 Certificates"), evidencing the
direct, undivided fractional interests of the owners thereof in lease payments made by the City
under that certain Lease Agreement dated as of December 1, 1988, by and between the Board as
lessor and the City as lessee (the "1988 Lease"), which lease payments are payable solely from
the net revenues derived by the City from the Water System; and
WHEREAS, the City has previously financed the acquisition and construction of certain
open space property, public park property and the rehabilitation of a recreation center from the
proceeds of the 1990 Certificates of Participation dated as of December 1, 1990, delivered in the
aggregate original principal amount of $4,500,000 (the "1990 Certificates"), evidencing the
direct, undivided fractional interests of the owners there of in lease payments made by the City
under that certain Lease Agreement dated as of December 1, 1990, by and between the Board as
lessor and the City as lessee (the "1990 lease"), which lease payments are payable from any
source of legally available funds of the City; and
WHEREAS, in order to realize interest rate savings, the City has proposed to refinance its
obligations under the 1988 and the 1990 Lease, and the City has further determined to finance
the acquisition and construction of various properties and improvements to be used for the
municipal purposes of the City, including but not limited to athletic fields, police station
expansion, public park property and historical museum expansion (collectively, the "Project"),-
and
WHEREAS, to that end the City has agreed to sell to the Board certain land which
contains a portion of the Project pursuant to an Acquisition Agreement by and between the City
as seller and the Board as purchaser, and the City and the Board have agreed to amend and
restate the 1988 Lease and the 1990 Lease pursuant to a First Amended and Restated Lease
Agreement whereby the Board leases to the City the properties which are currently subject to the
1988 Lease and the 1990 Lease, together with the existing properties sold to the Board by the
City under the Acquisition Agreement; and
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Resolution No. (1999 Series)
Page 2
WHEREAS, lease payments made by the City under the Lease are proposed to a assigned
by the Board to the Trustee for the security of 1999 Lease Revenue Bonds to be issued by the
Board under:an Indenture of Trust by and between the Board and U. S.. Bank Trust National
Association, as trustee, the proceeds of which will be applied to provide funds to refinance the
city's obligations under the 1988 Lease and the 1990 lease and to finance the acquisition and
construction of the Project; and
WHEREAS, the Board of directors wishes at this time to approve such financing
transactions and all documents:relating thereto;
NOW THEREFORE BE IT RESOLVED by the Board of Directors of the City of San
Luis Obispo Capital Improvement Board as.follows:
SECTION 1. Issuance of Bonds; Approval of Indenture. The Board of Directors hereby
authorizes the issuance of the.Bonds under and pursuant to Ordinance in the maximum principal
amount of$13,300,000. The Bonds shall be issued pursuant to the terms and provisions of the
Indenture, which the Board hereby approves in substantially the form on file with the Secretary,
together with any changes therein or additions thereto deemed advisable by the Executive
Director, whose execution thereof shall be conclusive evidence of the approval of any such
changes or additions. The Board of Directors hereby authorizes and directs the Executive
director to execute, and the Secretary to attest and affix the seal of the Board to, said form of the
Indenture for and in the name of the Board. The Board of Directors hereby authorizes the
delivery and performance of the Indenture.
SECTION 2. Approval of Related Financing Agreements: The Board of directors
hereby approves each of the following agreements required to implement the financing plans to
be accomplished by the Bonds, in substantially the respective forms on file with the Secretary
together with any changes therein or additions thereto deemed advisable by the Executive
Director, whose execution thereof shall be conclusive evidence of the approval of any such
changes or additions. The Executive Director 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:
(a) Acquisition Agreement, by and between the City and the Board, whereby the
City sells to the Board certain land constituting-a part of the Project, consisting generally
of the site of the athletic field improvements and the police station expansion facilities,
(b) First Amended and Restated Lease Agreement, between the Board as lessor
and the City as lessee, whereby the Board leases the property which is subject to the 1988
Lease and the .1990 Lease, and the property sold to the Board by the City under the
foregoing Acquisition Agreement, to the City in consideration of the City's agreement to
pay semiannual lease payments as the rental for such properties; and
(c) Assignment Agreement by and 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.
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Resolution No. (1999 Series)
Page 3
SECTION 3. Authorization of Competitive Sale of Bonds. The Board of directors
hereby authorizes and directs the competitive sale of the Bonds in accordance with the Notice
Inviting Bids 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
Inviting Bids.
SECTION 4. Publication of Notice. Pursuant to 53692 of the Government code, Jones
Hall, as bond counsel to the Board, 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 Executive Director, to be published
once in The Bond Buyer. Such publication shall be made not later than fifteen (15) days prior to
the date set for receipt of bids on the Bonds.
SECTION 5. Official Statement. The Board of Directors hereby approves the
preliminary Official Statement describing the Bonds in substantially the form submitted by the
Financial Adviser and 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 6. Official Actions. 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 site leases, assignments, certificates,
requisitions, agreements, notices, consents, instruments of conveyance, warrants and other
documents, which they or any of them might deem necessary or appropriate in order to
consummate any of the transactions contemplated by the agreements and documents approved
pursuant to 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 in the case such officer shall be absent or unavailable.
SECTION 7. Effective Date. This Resolution shall take effect immediately upon its
passage and adoption.
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Resolution No. (1999 Series)
Page 4
Upon motion of . , seconded by
and on the following roll call vote:
APES:
NOES:
ABSENT:
the foregoing resolution was adopted this:21 st day of September 1999.
President
Mayor Allen Settle
ATTEST:
. Secretary
Lee Price, City Clerk
APPROVED AS TO FORM:
Je - _ Jq gensen itoftorney
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