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File Number: 16-511 <br />of refunded par. City staff emphasizes that these savings numbers are estimates and <br />will not be certain until the Refunding Bonds are priced on or about 11/1/16. <br /> <br />Financing Structure <br />The City uses certificates of participation (COPs) to finance the construction and retrofitting of <br />its public facilities. COPs are a variation of the General Fund lease-purchase financing <br />method that was commonly used in California. Due to a perceived preference for lease <br />revenue bonds in today’s bond market, the Refunding Bonds will be structured as lease <br />revenue bonds instead of COPs, which is the same as when the City issued 2013 Refunding <br />Lease Revenue Bonds to refund 2001 and 2003 COPs. For the proposed Refunding Bonds, <br />the City will continue to lease the Main Library to the San Leandro Public Financing Authority <br />(Authority). The Authority will lease the Main Library back to the City for payments equal to the <br />debt service on the Refunding Bonds. The City will make these payments to the holders of the <br />Refunding Bonds from the General Fund. <br />The Financing Team <br />Staff worked with the firms listed below to bring this financing transaction to the City Council <br />and Authority for approval. Therefore, the resolution of issuance to be adopted by the Council <br />directs staff to enter into agreements for consulting services with the following firms in the <br />following capacities: <br />Name of Firm Capacity <br />Stifel, Nicolaus & Company, Inc. Underwriter <br />Kitahata & Company Financial Advisor <br />Jones Hall, APLC Bond Counsel & Disclosure Counsel <br />U.S. Bank National Association Trustee <br />Stifel and Kitahata & Company were both chosen via separate requests for proposals for <br />underwriters and financial advisors. The primary reasons for the selection of both firms <br />included relevant experience, pricing and structuring creativity. <br />Jones Hall has been the City’s bond counsel dating back to 1979. Jones Hall ranks as one of <br />the top bond counsel in the number of state and local bond issues in California during each of <br />the past ten years, and similarly has ranked as one of the top disclosure counsel in California <br />during this same period. <br />U.S. Bank is bond trustee for the City’s 2007 COPs to be refunded. U.S. Bank is one of the <br />top five municipal bond trustees in the country and most recently served as trustee for the <br />City’s 2013 Refunding Lease Revenue Bonds. U.S. Bank also serves the City with two local <br />branch offices. <br />All fees associated with issuing the Refunding Bonds will be paid from bond proceeds. <br />Sources and Uses of Funds <br />Staff projects the following sources and uses of funds for the Refunding Bonds financing <br />transaction. <br />Sources of Funds <br />Page 2 City of San Leandro Printed on 10/11/2016