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HomeMy WebLinkAbout09/21/1999, 1 - 1999 LEASE REVENUE BONDS council aclenc)a RE'p®ntI leem N®5er 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 1-1 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. 1-2 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 1-3 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. 1-4 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. 1-5 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 1-6