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Regular-General Government # 31.
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| Board of Supervisors |
County Administrator |
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| Subject |
| Receive required bond disclosure training and approve the 2017 Capital Improvement Plan projects to be included in a financing plan. (No general fund impact) (Nunes) |
| Recommended Action |
- Receive required bond disclosure training; and
- Approve 2017 Capital Improvement Plan projects to be included in a financing plan.
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| Strategic Plan Goal(s) |
| Operational Excellence |
| Reason for Recommended Action/Background |
In April 2016, the Board received a presentation from KNN Public Finance of conceptual bond financing scenarios to address the priority capital improvement projects; and in May 2016, the Board reviewed several project scopes and gave staff feedback to incorporate into the capital planning process. On October 25, 2016, the Board approved the 2017-2019, rolling three-year Capital Improvement Plan identifying specific projects and investments for capital improvement. (Attachment A)
In order to move forward with a financing plan, the final approval of projects to be included needs to occur. The finance plan highlights the final scope of projects recommended for a lease-revenue bond financing approach. The financing team recommends the following projects from the approved CIP be included for funding:
PROJECTS
(Table A) |
Bonded Construction Costs |
Estimated Annual
Debt Service (20 yr.) |
| Sheriff Expansion: Monroe (approved) |
$6,700,000 |
$523,786 |
| Sheriff Expansion: Leinberger (approved) |
$5,100,000 |
$398,614 |
| Historic Courthouse |
$5,000,000 |
$390,930 |
| Library Archives Remodel |
$2,000,000 |
$156,516 |
| TOTALS |
$18,800,000 |
$1,469,847 |
One significant change from the prior project list is the removal of the Yolo Library construction. During the kick-off meeting for financing, staff learned that only projects that had completed California Environmental Quality Act requirements could be included. Yolo Library will require a full Environmental Impact Report which will take approximately nine months to complete. With a bond issuance anticipated for July in order to have funds available for the jail facility projects, Yolo Library will need to wait for a phase 2 or alternate financing option.
Other potential inclusions for a phase 2 financing plan would be the Adult Day Health Center, Animal Shelter and purchase of the Gonzales Building (HHSA Woodland Service Center). Additionally, the Library is in the process of completing a Facilities Master Plan which will include recommendations on the timing of construction for libraries in South Davis and West Sacramento.
Attachment B outlines the components of what would be a $20,600,695 bond issuance. In consultation with Bond Counsel and our financing consultant, KNN, staff anticipates bringing forward a recommendation for utilizing lease revenue bonds. One component of bond financing is disclosure training for elected officials as required under federal securities laws. As part of the financing package, staff will be seeking Board approval of an Official Statement for the bond issuance. Disclosure counsel will be present to provide some background on factors the Board might consider as part of that official statement.
Today, staff seeks approval of the projects in Table A and direction to move forward with preparing lease revenue financing documents. If approved, staff will return in May and June with financing documents required to execute the bond issuance. |
| Collaborations (including Board advisory groups and external partner agencies) |
| Capital Improvement Committee (CIC) includes members from the County Administrator's Office, the Department of Financial Services, and the General Services department. The financing team includes key personnel from the CIC, bond counsel (Orrick) and disclosure counsel (Stradling). |
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| Fiscal Impact |
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| Source of Funds for this Expenditure |
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