HomeMy WebLinkAbout03/16/2004, BUS 4 - MEETING OF THE CAPITAL IMPROVEMENT BOARD r
' -- V TTING AGENDA
LKS ITEM #
San Luis Obis o Ca ital Improvement Board
AGENDA REPORT
March
® O -
March 16,2004
FROM: Bill Statler,Director of Finance
Prepared by: Carolyn Dominguez, Finance Manager
SUBJECT: MEETING OF THE CAPITAL IMPROVEMENT BOARD
CAO RECOMMENDATION
1. Approve minutes of meeting held on June 4,2002.
2. Elect officers for the Capital Improvement Board(President and Vice President).
3. Adopt a resolution approving the refinancing of the 1994 Lease Revenue Bonds.
4. 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. 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 4, 2002. 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 Refinancing the 1994 Refunding Lease Revenue Bonds. The key issues related to
refinancing the 1994 Lease Revenue Bonds (which in tum refinanced the 1986 Lease Revenue
Bonds)are fully described in the Council Agenda Report separately prepared for this item.
4. Adjournment. Adjourn to the next regular meeting.
ATTACBACMS
1. Minutes from June 4, 2002 Meeting
2. Resolution Approving the Refinancing of the 1994 Refunding Lease Revenue Bonds
G:Finance/2004 Refinancing/CDB Agenda Repon 3-16.04
City Council Meeting Aft nt .4
Tuesday,June 4,2002-5:00 p.m.
have asked to review it sooner. In closing, he argued that the the character of the older
home will be preserved through the ARC review process. Vice Mayor Marx and Mayor
Settle concurred.
ACTION: Moved by Marx/Schwartz to adopt Resolution No. 9320(2002 Series)
approving the tentative parcel map with exceptions to the subdivision and zoning
regulations, based on findings and subject to conditions; motion passed 3:1
(Mulholland).
BUSINESS ITEMS
Mayor Settle adjourned the meeting at 7:50 M. to the annual mee ' f the Ca ital
ImproverfielftBoard.
6. ANNUAL MEETING OF THE CAPITAL IMPROVEMENT BOARD.
City Administrative Officer Hampian presented the staff report. There were no public
comments.
ACTION: Moved by Mulholland/Marx to: 1) Approve the minutes of the meeting
held October 16,2001. 2) Mayor Settle and Vice Mayor Marx were elected as the
President and Vice President of the Capital Improvement Board; motion carried 4:0
(Ewan absent).
At 8:52 p.m. Mayor Settle reconvened the Council meeting.
7. DESIGNATION OF THE CITY AS THE TENANT OF THE.PALM-MORRO
PARKING/OFFICE STRUCTURE.
CAO Hampian introduced the item emphasizing that the City is acting in the capacity of the
property owner in this matter. He summarized the primary and secondary purpose of the
item and revised the CAO recommendations by eliminating Recommendation#1. Econo-
mic Development Manager Stanwyck presented the staff report. Council questions
followed.
Public Comments:
Wendy Eidson, Executive Director of the SLO Little Theater,pointed out that the City uses
spaces in the old City library for storage and asked that consideration be given to allowing the
Little Theater to use that space If it should become available.
—end of public comments—
Council discussion ensued.
Council Member Mulholland referenced the list of the Council's Major City Goals and
observed that the current project is not what is described in the Goal, nor has it been
abandoned or revised. She argued that the building will net only half of the office space
needed and the multi-story parking structure is not what was previously envisioned at that
location. She asserted that there will be negative environmental impacts that will not be
mitigated and explained that she hopes that the Council will have the opportunity to make
changes to the design of the building and to re-examine the funding arrangements. Council
.Member Mulholland asked the Council to consider taking a step back and to look at the
^Y'O�
Affachment
RESOLUTION NO. (2004 Series)
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
CITY OF SAN LUIS OBISPO CAPITAL IMPROVEMENT BOARD
AUTHORIZING THE ISSUANCE AND SALE OF 2004 REFUNDING LEASE
REVENUE BONDS IN THE MAXIMUM PRINCIPAL AMOUNT OF$896009000
FOR THE PURPOSE OF REFINANCING ITS 1994 BONDS,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, 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 its Lease Revenue Bonds (Capital
Improvement Projects), Series 1986 in the aggregate principal amount of $13,970,000 (the "1986
Bonds");and
WHEREAS, the Board refinanced the 1986 Bonds from the proceeds of its 1994 Refunding
Lease Revenue Bonds (Capital Improvement Projects) issued in the aggregate principal amount of
$11,780,000 (the "1994 Bonds"), which are payable from lease payments made by the City under a First
Amended and Restated Lease Agreement dated as of October 1, 1994 (the "1994 Lease"), between the
Board as lessor and the City as lessee of the properties which were originally financed from the proceeds
of the 1986 Bonds; and
WHEREAS, the 1994 Bonds are subject to redemption in full on June 1, 2004, and due to
favorable conditions in the municipal bond market, the City and the Board wish to realize interest rate
savings by refinancing the outstanding 1994 Bonds at this time; and
WHEREAS, to that end the Board wishes to authorize the issuance and sale of its 2004
Refunding Lease Revenue Bonds in the maximum principal amount of$8,600,000 (the "Bonds") under
the provisions of Articles 10 and 11 of Chapter 3 of Part 1 of Division 2 of Title 5 of the California
Government Code, commencing with Section 53570 of said Code (the "Bond Law"), and to authorize the
execution and delivery of all related documents;
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the City of San Luis
Obispo Capital Improvement Board as follows:
SECTION 1. Authorization of Bonds. The Board of Directors hereby authorizes the issuance of
the Refunding Bonds under the Bond Law in the maximum principal amount of $8,600,000, for the
purpose of providing funds to refinance the outstanding 1994 Bonds in full. The Refunding Bonds shall
be issued under the Indenture of Trust which is approved below.
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 Bonds and the
refinancing of the 1994 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:
416
J
Resolution No. (2004 Series)
Attachment.�
Page 2
• Indenture of Trust,between the Board and U.S. Bank National Association, as trustee
(the "Trustee", setting forth the terms and provisions relating to the Refunding
Bonds.
• Second Amended and Restated Lease Agreement, between the Board as lessor and
the City as lessee, which amends and restates the 1994 Lease for the purpose (among
others) of incorporating provisions relating to the 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 refinancing;
• Assignment and Termination A epi ement, 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 Bond owners, and the
Board the Trustee terminate the assignment previously made for the security of the
1994 Bonds; and
• Irrevocable Refunding Instructions, given by the Board to U.S. Bank National
Association, as trustee for the 1994 Bonds, providing the investment and
administration of funds to refinance the 1994 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 Bonds, as determined in accordance with the Notice Inviting Bids.
SECTION 4. Publication of Notice. Under 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 Bonds.
The Secretary is hereby authorized and directed to cause the Notice of Intention to Sell Bonds to
be published once at least 10 days before the date set for receipt of bids on the Bonds, in a newspaper of
general circulation published in the City of San Luis Obispo as required by Section 53583(c)of the Bond
Law.
SECTION 5. Official Statement. The Board of Directors hereby approves the preliminary
Official Statement describing the 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 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. /(
( , i _.
Attachen
�at
Resolution No. (2004 Series)
Page 3
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 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 7. Effective Date. This Resolution shall take effect immediately upon its passage and
adoption.
On motion of seconded by and on the
following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this 16th day of February 2004.
David F.Romero,President
ATTEST:
Lee Price,C.M.C.
Secretary
APPROVED AS TO FORM:
Jonat n P. well
Board Atrr6rney