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HomeMy WebLinkAbout10/16/2001, CIB 4 - MEETING OF THE CAPITAL IMPROVEMENT BOARD ME. .NG AGENDA c�e �f San Luis Obispo Capital Improvement EtB� AGENDA REPORT October 16,2001 FROM: Bill Statler, Director of Finance Prepared by: Linda Asprion,Revenue Manager, SUBJECT: MEETING OF THE CAPITAL IMPROVEMENT BOARD CAO RECOMMENDATION 1. Approve minutes of meeting held on June 6,2000. 2. Elect officers for the Capital Improvement Board(President and Vice President). 3. Adopt a resolution approving the refunding 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 implement required financing for constructing and improvement to various public facilities. The Council serves as the Board of Directors for this agency. The following four actions are before the Board tonight: 1. Approval of Minutes from June 6, 2000. Minutes from the Board's last meeting are attached for approval. These minutes are based on the regular Council meeting minutes already approved by the Council for this date. 2. Election of Officers. In keeping with past practice, it is recommended that the Mayor serve as President and the Vice-Mayor serve as Vice-President. 3. Approve Refunding the 1999 Lease Revenue Bonds. The key issues related to refunding the 1999 Lease Revenue Bonds are fully described in the Council Agenda Report separately prepared for this item. 4. Adjournment. Adjourn to the next regular meeting. ATTACHMENTS 1. Minutes from June 6,2000 meeting 2. Resolution approving refunding of the 1999 Lease Revenue Bonds G:FinancefRefunding 1999 Lease Revenue Bonds/CB Meeting L City Council MeetingAfta.almmnth Tuesday,June 6, 2000-5:00 p.m CAPITAL IMPROVEMENT BOARD The Council convened as the Capital Improvement Board. 5. ANNUAL MEETING OF THE CAPITAL IMPROVEMENT BOARD. ACTION: Moved by Rom_ero/Marx to 1)approve the Minutes of the meeting held on September 21, 1999.. 2) Elect officers for the Capital Improvement Board(President and Vice President); motion carried 5:0. At 9:09 the Capital Improvement Board adjourned. The Council meeting reconvened. 6. CAL POLY MASTER PLAN UPDATE REVIEW AND COMMENT. Community.Development'Director Jonas provided the staff report. Linda Dalton. Cal Poly Vice Provost, indicated that comments received have been very constructive and many will be incorporated. Vice Mayor Schwartz urged the University to consider the full impacts of the college on the community, particularly in the area of housing. Competition for housing is not with Cuesta College students, as stated in the Plan, but rather with low and moderate income families in SLO, he added. Vice Mayor Schwartz asked Cal Poly to consider the comments submitted to the City by Residents for Quality Neighborhoods. Council Member Marx encouraged Cal Poly to begin now to educate students about what it means to live in a community and urged the University to consider the environmental impacts to the neighborhoods and the community as a whole when designing and constructing new facilities and amenities. Council Member Ewan expressed concerns regarding transit programs and emphasized the need for creating solutions to traffic impacts. Vice Mayor Schwartz suggested that.comments made by Carla Saunders relative to an EIR and sound be forwarded as part of the City's comments. ACTION: Moved by Romero/Ewan to forward recommendations by the City and correspondence received from the public to Cal Poly for inclusion in the Cal Poly Master Plan,emphasizing achievement.of the Plan's policies and goals through cooperative involvement with the City and its citizens, and minimization of potential adverse impacts on the City's neighborhoods and on the community resulting from University growth or operations; motion carried 5:0. COUNCIL LIAISON REPORTS None. COMMUNICATIONS UNDERGROUND.ELECTRIC SERVICE IN THE-DOWNTOWN 4/_Z1 AttachMnt.22- RESOLUTION NO. (Series 2001) RESOLUTION OF THE BOARD OF DIRECTORS OF THE CITY OF SAN LUIS OBISPO CAPITAL IMPROVEMENT BOARD AUTHORIZING THE ISSUANCE AND SALE OF LEASE REVENUE REFUNDING BONDS IN THE MAXIMUM PRINCIPAL AMOUNT OF $13,000,000 FOR THE PURPOSE OF PROVIDING FINANCING TO THE CITY OF SAN LUIS OBISPO, AND APPROVING RELATED DOCUMENTS AND OFFICIAL ACTIONS WHEREAS, the 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, in order to assist the City in financing and refinancing various public capital improvement projects of the City, the Board has previously issued three series of its 1999 Lease Revenue Bonds (collectively, the "1999 Bonds"), consisting of the following: 1. City of San Luis Obispo Capital Improvement Board 1999 Lease Revenue Bonds, Series A, in the aggregate principal amount of$3,105,000, 2. City of San Luis Obispo Capital Improvement Board 1999 Lease Revenue Bonds, Series B, in the aggregate principal amount of$3,245,000, and 3. City of San Luis Obispo Capital Improvement Board 1999 Lease Revenue Bonds, Series C, in the aggregate principal amount of$6,745,000; and WHEREAS, the 1999 Bonds are secured by revenues consisting primarily of lease payments made by the City under a First Amended and Restated Lease Agreement dated as of November 1, 1999 (the "1999 Lease"), under which the Board has leased to the City certain property as more fully described therein, including water system improvements, open space property, public park property, a recreation center, athletic fields, police station facilities and an historical museum (collectively, the "Properties"); and WHEREAS, due to favorable conditions in the municipal bond market, the City and the Board wish to realize interest rate savings by refunding the outstanding 1999 Bonds at this time, thereby reducing the City's annual lease payment obligations under the 1999 Lease; and WHEREAS, to that end the Board of Directors wishes at this time to approve the issuance and sale of three series of its 2001 Lease Revenue Refunding Bonds in the maximum principal amount of $13,000,000 (the "Refunding Bonds"), and to authorize the execution and delivery of all documents and actions required to issue and sell the Refunding Bonds; NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the City of San Luis Obispo Capital Improvement Board as follows: 1/-3 Resolution No. (2001 Series) Page 2 SECTION 1. Issuance of Refunding Bonds; Approval of Indenture. The Board of Directors hereby authorizes the issuance of the Refunding Bonds under Ordinance in the maximum principal amount of $13,000,000. The Refunding Bonds shall be issued under an Indenture of Trust (the "Indenture") between the Board and U.S. Bank Trust National Association, as trustee (the "Trustee"). The Board hereby approves the Indenture in substantially the form on file with the Secretary, together with any changes therein or additions thereto deemed advisable by the Chief Financial Officer; 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 Chief Financial Officer to execute, and the Secretary to attest and affix the seal of the Board to, the final 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 for the issuance and sale of the Refunding Bonds and the refunding of the 1999 Bonds, in substantially the respective forms on file with the Secretary together with any changes therein or additions thereto deemed advisable by the Chief Financial Officer, whose execution thereof shall be conclusive evidence of the approval of any such changes or additions. The Chief Financial 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 and affix the seal of the Board to, the final form of each such agreement: a. Second Amended and Restated Lease Agreement, between the Board as lessor and the City as lessee, which amends and restates the 1999 Lease for the purpose (among others) of incorporating provisions relating to the Refunding Bonds and reducing the amount of annual lease payments required to be paid by the City thereunder to reflect the interest rate savings resulting from the refunding; b. Assignment and Termination Agreement between the Board and the Trustee, whereby the Board assigns certain of its rights under the Second Amended and Restated Lease Agreement to the Trustee for the benefit of the Refunding Bond owners, and terminates the assignment previously made for the security of the 1999 Bonds; and C. Escrow Deposit and Trust Agreement among the Board, the City and U.S. Bank Trust National Association, as escrow bank, providing the investment and administration of funds to refund the 1999 Bonds. SECTION 3. Authorization of Competitive Sale of Refunding Bonds. The Board of Directors hereby authorizes and directs the competitive sale of the Refunding 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 Refunding Bonds, as determined in accordance with the Notice Inviting Bids. yy Resolution No. (2001 Series) Page 3 SECTION 4. Publication of Notice. Pursuant to 53692 of the Government Code, Jones Hall, as bond counsel to the Board and the City, 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 Chief Financial Officer, to be published once in The Bond Buyer. Such publication shall be made not later than 15 days prior to the date set for receipt of bids on the Refunding Bonds. SECTION 5. Official Statement. The Board of Directors hereby approves the preliminary Official Statement describing the Refunding Bonds in substantially the form 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 Bond Counsel 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 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 is absent or unavailable. SECTION 7. Effective Date. This Resolution shall take effect immediately upon its passage and adoption. Upon motion of , seconded by and on the following roll call vote: AYES: NOES: ABSENT: S� Resolution No. (2001 Series) Page 4 the foregoing resolution was passed and adopted this 16`x' day of October 2001. Allen Settle, President ATTEST: Lee Price, Secretary APPROVED AS TO FORM: 4��;Amn Z�� /fpvG. rg en, and Attorney �G