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HomeMy WebLinkAboutAS01-Water Department CITY OF SAN BERNARDINO - . , , , " Mayor and Common Council REQUEST ':QR COUNCIL ACTION \'\,," , From: Subject: Issuance of certificates of Participation-Public Safety Authority-Water Reclamation Plant Dept: Bernard C. Kersey, General Manager Water Department November 26, 1991 Date: Synopsis of Previous Council action: None Recommended motion: Receive and File ~~(!~r Contact person: Bernard C. Kersey Phone: 384-5091 Supporting data attached: Yes Ward: All FUNDING REQUIREMENTS: Amount: Source: IAcct. No.1 IAcct. Description) Finance: Council Notes: 75.0262 Agenda Item No #5" - / . CITY OF SAN BERORDINO - REQUEST OlR COUNCIL ACTION STAFF REPORT The Water Department is preparing to issue Participation though the Public Safety Authority at the Water Reclamation Plant. Certificates of for improvements The Public Safety Authority is a joint powers authority of the City and County of San Bernardino and was the funding source for the 1969 expansion of the Water Reclamation Plant. The issue will be used for the following projects: 2.375.000 $36,800,000 2.200.000 $39,000,000 3,773,000 834,000 r 1. 857 . 0001 $41,750,000 The term of the issue is proposed for twenty-five years. Included in this issuance are proceeds to defease the remaining balance of the 1986 Sewer Refunding Revenue Bonds. The purpose of defeasing the issue is to eliminate multiple layers of debt service and bond covenants and to allow the pledge of all revenues of the Sewer Fund for debt service. Primary Hydraulic Reliability Project Construction Costs Construction Management Contingency (10%) Sub Total PHR Phase 3A Secondary Expansion-Design Water Reclamation Lab, Operations, Control Center, Administration (PHR) $28,000,000 2,650,000 1. 375.000 $32,025,000 2,400,000 Defeasance of 1986 Refunding Sewer Bonds Total Project costs Reserve Fund Discount and Issuance costs Interest on Construction Funds The process to be used to defease the bonds is called an "asset transfer". The city will sell to the Public Safety Authority a piece of property on which new facilities will be constructed. The sale value will be equivalent to the amount needed to defease the bonds. The proceeds of this sale will be used to defease the revenue bonds. Under the Certificate of Participation Installment Purchase Agreement, the city will purchase both the site and improvements from the Public Safety Authority. In preparing the schedule for this issue, the bids for the certificates will be received on February 4, 1992. The Mayor and Common Council will be asked to consider the following actions at its meeting of January 6, 1992: Recommendation from Board of Water Commissioners for sale of certificates. Approval of documents calling for bids on issuanc~ of certificates. Approval of official statement. 75-0264