Laserfiche WebLink
File Number: 18-539 <br />Net proceeds of the 2018 Bonds are expected to be used for the projects described above, but <br />the City has the discretion to substitute other projects at any time. With the exception of the <br />Mulford-Marina Library project all the listed projects are funded with existing appropriations. <br />The estimated cost of the Marina Mulford Library is $1.0 million more than the existing <br />appropriations. Nevertheless, the City intends to build the library as envisioned. To fully fund the <br />project, staff will look first at revenues from the Shoreline development to cover the shortfall. <br />Should that project not generate sufficient revenue, staff would explore re-allocating from other <br />projects or using CIP funding from the upcoming two-year budget. Funding options for this project <br />will be brought forward for City Council consideration when more information becomes available <br />regarding the fiscal impacts of the Shoreline development project. <br />Financing Structure <br />In December 2016 the Authority issued $14,125,000 principal amount of 2016 Refunding Lease <br />Revenue Bonds (2016 Bonds) to refinance 2007 certificates of participation, which the City had <br />caused to be executed and delivered to finance improvements to the Main Library and the <br />acquisition and construction of two fire stations. The 2016 Bonds are secured by lease payments <br />made by the City to the Authority pursuant to a lease agreement for use of the Main Library; the <br />Main Library is leased by the City to the Authority pursuant to a Site Lease. The 2016 lease <br />agreements used the Main Library as the leased asset; using an existing essential-function asset <br />makes for a stronger financing. The Main Library has sufficient value to serve as the leased asset <br />for both the outstanding 2016 Bonds and the proposed 2018 Bonds. The City will make debt <br />service payments for the 2018 Bonds (just like the 2016 Bonds) in the form of lease payments <br />from the General Fund. <br />The Financing Team <br />Staff has been working with the firms listed below to bring this financing transaction to the City <br />and Authority for approval. The City resolution directs staff to enter into agreements for services <br />with Stifel, Jones Hall and Kitahata & Company. Staff already has the authority to enter into an <br />agreement with the trustee. <br />Name of Firm Capacity <br />Stifel, Nicolaus & Company, Inc.Underwriter <br />Jones Hall, APLC Bond counsel and disclosure counsel <br />Kitahata & Company Municipal advisor <br />U.S. Bank, National Association Trustee <br />Stifel and Kitahata & Company were both chosen via separate requests for proposals (RFP) for <br />underwriters and municipal advisors. The primary reasons for the selection of both firms included <br />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 the <br />top bond counsels in the number of state and local bond issues in California during each of the <br />Page 2 City of San Leandro Printed on 10/30/2018