Loading...
HomeMy WebLinkAbout02.05.2020 @631 Special Measure W COCWednesday, February 5, 2020 6:31 PM City of South San Francisco P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA City Hall, City Manager's Conference Room 400 Grand Avenue, South San Francisco, CA Special Measure W Citizens' Oversight Committee Special Meeting Agenda 1 February 5, 2020Special Measure W Citizens' Oversight Committee Special Meeting Agenda NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the State of California, the Measure W Citizens' Oversight Committee of the City of South San Francisco will hold a Special Meeting on Wednesday, February 5, 2020 at 6:31 p.m., in the City Manager's Conference Room, City Hall, 400 Grand Avenue, South San Francisco, California 94080. Call To Order. Roll Call. Agenda Review. Public Comments. MATTERS FOR CONSIDERATION Motion to approve the minutes from the meetings of October 15, 2019.1. Presentation to the Measure W Citizen's Oversight Committee regarding roles and responsibilities (Claire Lai, Assistant City Attorney) 2. Presentation to the Measure W Citizens’ Oversight Committee on Financial Highlights for FY2018-2019 and Overview of the Civic Center Campus Financing. (Janet Salisbury, Director of Finance) 3. Adjournment. Page 2 City of South San Francisco Printed on 1/8/2024 2 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:20-88 Agenda Date:2/5/2020 Version:1 Item #:1. Motion to approve the minutes from the meetings of October 15, 2019. City of South San Francisco Printed on 1/8/2024Page 1 of 1 powered by Legistar™3 MEASURE W CITIZENS’ OVERSIGHT COMMITTEE OCTOBER 15, 2019 SPECIAL MEET ING MINUTES PAGE 1 MINUTES SPECIAL MEETING MEASURE W CITIZENS’ OVERSIGHT COMMITTEE OF THE CITY OF SOUTH SAN FRANCISCO P.O. Box 711 (Cit y Hall, 400 Grand Avenue) South San Francisco, Calif ornia 94083 Meeting to be held at: CITY HALL FINANCE CONFERENCE ROOM 400 GRAND AVENUE, LOWER LEVEL SOUTH SAN FRANCISCO, CA TUESDAY, OCTOBER 15, 2019 6:45 p.m. Call to Order. Time: 6:45 p.m. Roll Call. PRESENT: Chair Wong, Vice Chair Fernandez De Paz, Committee Member Alcalde ABSENT: Committee Members Brosnan and Zemke STAFF: Finance Director Salisbury and Director of Capital Projects Gilchrist, Assistant City Attorney Lai Agenda Review. No changes to agenda. PUBLIC COMMENTS Mina Richardson, addressed the Committee to express her concern with the project ’s funding problem and requested more information regarding a memorandum of understanding between the Cit y and the Librar y Foundation regarding fundraising and a State grant of $4 million mentioned a September Regular Cit y Council Meeting. Finance Director Salisbury stated that the committee is limited to Measure W funds and the revenue taken in by Measure W and that anything outside of that is not part of the scope of the committee and would be presented at a regular Council Meeting. 4 MEASURE W CITIZENS’ OVERSIGHT COMMITTEE OCTOBER 15, 2019 SPECIAL MEET ING MINUTES PAGE 2 Mina Richardson questioned the legality. Assistant City Attorney Lai agreed that the description of the scope was correct. Mina Richardson argued that any revenues that the fund raises cast a shadow on the whole project so the revenues and lack thereof should be discussed. She stated that the in her view the project is running out of money and that the City is looking for ways to raise money making it pertinent that the committee be given the realities of the funding for the project. In addition to Mina Richardson’s statement Committee Member Alcalde questioned information from a City Council Meeting where it was mentioned that the library and the park would cost 120 Million. In response to Committee Member Alcalde’s question, Finance Director Salisbury stated there are two phases and that we would go over the cost during Item 3, Capital Projects. Chair Wong commented in response to Mina Richardson’s statement that the committee is aware of the funding situation. Mina Richardson requested additional time to speak. Mina Richardson stated that the public is entitled to understand and know all of the funding mechanisms related to the project and the project appears to be trouble. MATTERS FOR CONS IDERATION 1. Motion to approve the Minutes from the meeting of August 7, 2019. Attachments: 08.07.19 Meas W COC Minutes-Action Minutes Committee Member Alcalde stated that the minutes were not available from his computer. Chair Wong stated she was only able to access the minutes from the email sent by the secretary. Finance Director Salisbury stated that IT would look into it. Committee Member De Paz stated that he could not see the minutes from the email and was only able to access the minutes from the website. Finance Director Salisbury reiterated that IT would look into it. Mina Richardson stated that she believed the minutes were incomplete as a s tatement she made and an item she though would be on the agenda was not there, therefor she stated the minutes were incomplete. The committee secretary explained that the minutes are action minutes and that audio is available through the City Clerk. 5 MEASURE W CITIZENS’ OVERSIGHT COMMITTEE OCTOBER 15, 2019 SPECIAL MEET ING MINUTES PAGE 3 Action: Motion-Committee Member Alcalde/Second-Chair Wong to approve the Minutes from the meeting of August 7, 2019. Approved b y roll call vote (3-0-2) 2. Report transmitting Measure W Fiscal Year 2019-20 financial reports as of September 30, 2019. (Janet Salisbury, Finance Director) Finance Director Salisbury presented the report for the first quarter of fiscal year 2019-2020. She stated that there was not a lot to report as the budget awarded for the fiscal year of $17 Million has not been spent and doesn’t leave anything to report in terms of capital spending for this fiscal year. Committee Member Alcalde questioned if the City is receiving money from the State. Finance Director responded that to date the City has received $930,148.00 in terms of Measure W revenues as reflected in Attachment 1. Committee Member Alcalde stated that he saw a lot of zeros on the other report. Finance Director Salisbury stated that this is what there is to report as of this time and that she expects we will have more to report as of Quarter 2. Chair Wong questioned what happened in the three months July to September as the committee saw no expenditures. She questioned if the project stopped as the committee has not seen any expenditure over the past year. Finance Director Salisbury stated as she is not the project manager she can only surmise that contracts have been executed but that no dollars have been spent. She stated that we are in the phase where we are looking for bids, active design, which is phase 1. Finance Director Salisbury concluded her report. Attachments: 1. FY 2019-20 Measure W Revenue Detail Sept 2019 YTD 2. FY 2019-20 Measure W Expenditure Detail Sept 2019 YTD 3. FY 2019-20 Measure W Balance Sheet Report Sept 2019 YTD 4. FY 2019-20 Measure W Life-to-date Revenues and Expenditures through Sept 2019 3. Report regarding an update on the Community Civic Campus Project Design Development. (Jacob Gilchrist, Director of Capital Projects and Smith Group, Master Architect) Jacob Gilchrist, Director of Capital Projects introduced himself and his work on the Civic Campus. He stated that since June they have been working primarily on the skin or exterior and have been putting a lot more detail into the council chambers and presented a model of the council chambers. He stated that he would be happy to answer any questions after the presentation. Kenneth Litwin, Project Director from Smith Group gave an update of the current status. He stated that we are about 75% done with project development and gave a presentation on the exterior skin and the council chambers. He gave a brief presentation on the library/park and rec 6 MEASURE W CITIZENS’ OVERSIGHT COMMITTEE OCTOBER 15, 2019 SPECIAL MEET ING MINUTES PAGE 4 project. Committee Member Alcalde requested an estimate regarding the Police Station. Project Director Litwin stated that the estimate is $56 million and continued the presentation. Committee Member Alcalde requested a presentation of the police station. Director of Capital Projects Gilchrist stated that there was not a current presentation of the police station, Committee Member Alcalde stated that he would like to see the drawing before they go out to BID. Finance Director Salisbury stated that the design request is outside of the scope of the committee and that it will definitely be presented at Council. Committee Member Alcalde responded to Finance Director Salisbury that he disagreed. Stating that the project is being funded by monies that the committee is overseeing. He stated that design, construction, zoning, anything having to do with the project is within the purview of the committee as it is being funded by Measure W. Committee Member De Paz requested that the police station design be presented at the next meeting with the understanding that the committee does not approve the design, as the committee has seen the library and various parts of the civic center design but has not seen the police station. He stated that the committee has seen the outside drawings but nothing in the inside and that it has been about 6 months since the last time the drawings/m odels were brought. Project Director Litwin presented a summary that was presented to Council at the October 9 th meeting and concluded his presentation. Attachments: 2019-1009 LPR CITY COUNCIL Mina Richardson addressed the board regarding the cost of the Civic Campus citing the stated $176 million for the library and the police station. Director of Capital Improvements Gilchrist stated that the difference is the project cost. Committee Member Alcalde asked if there was a contingency. Director of Capital Improvements Gilchrist stated that there is an industry standard construction contingency of 10% and an added design contingency which brings the contingency to approximately 18.5% contingency. The board reiterated their request to see the police station and more financial data in regards to the police station. Committee Member De Paz also requested a presentation regarding other projects related to 7 MEASURE W CITIZENS’ OVERSIGHT COMMITTEE OCTOBER 15, 2019 SPECIAL MEET ING MINUTES PAGE 5 Measure W funds also to be presented in December. ADJ OURNMENT At 7:31 p.m., Chair Wong adjourned the meeting. Submitted by: Approved by: Amanda Parker, Administrative Assistant II Cit y of South San Francisco Christine Wong, Chair City of South San Francisco 8 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:20-86 Agenda Date:2/5/2020 Version:1 Item #:2. Presentation to the Measure W Citizen's Oversight Committee regarding roles and responsibilities (Claire Lai, Assistant City Attorney) City of South San Francisco Printed on 1/8/2024Page 1 of 1 powered by Legistar™9 1/31/2020 4.36.140 Citizens’ oversight and annual audit. qcode.us/codes/southsanfrancisco/1/1 South San Francisco Municipal Code Up Previous Next Main Search Print No Frames Title 4 REVENUE AND FINANCE Chapter 4.36 TRANSACTIONS AND USE TAX 4.36.140 Citizens’ oversight and annual audit. A. There shall be a five-person committee appointed by the city council to review and report on the receipt of revenue and expenditure of funds from the tax authorized by this section (“revenues and expenditures”). Members of the committee shall be residents of the city or representatives of businesses located in the city. B. Beginning with the fiscal year that ends June 30, 2016, the city’s independent auditors shall, as part of their annual audit of the city’s financial statements, review the collection and expenditure of revenue from the tax authorized by this chapter. The auditors’ review shall be a public document. The committee shall annually review the auditors’ findings and report in writing to the city council regarding the accuracy of the auditors’ findings regarding the revenues and expenditures. The committee’s statement shall be transmitted through the city manager’s office to the city council for consideration at a public meeting. C. By July 1, 2016, the city council shall adopt a resolution establishing the composition of the committee and defining the scope of its responsibilities consistent with this section. Provisions defining the scope of committee responsibilities and reporting requirements shall address bond oversight, in the event that a decision is made at a later time to sell bonds that are in part backed by the revenues referenced in this section. The city council shall appoint the initial members of the committee no later than December 31, 2016. (Ord. 1503 § 2, 2015) View the mobile version. 10 v« sky City of South San Francisco 400 Grand Avenue) South San Francisco, CA City Council 117/7-Kh`P Resolution: RES 144-2016 File Number: 16-964 Enactment Number: RES 144-2016 RESOLUTION REVISING THE MEASURE W CITIZENS' OVERSIGHT COMMITTEE BYLAWS. WHEREAS, on November 3, 2015, voters in South San Francisco approved Measure W, establishing a one-half cent retail transactions and use tax; and WHEREAS, Measure W calls for the formation of a Citizens' Oversight Committee to review and report on the receipt of revenue and expenditure of funds from this tax; and WHEREAS, on May 11, 2016, the City Council adopted the Measure W Citizens' Oversight Committee bylaws, establishing the composition and defining the scope of the responsibilities of the Citizens' Oversight Committee; and WHEREAS, the City Council wishes to make revisions to the Measure W Citizens' Oversight Committee bylaws, as set forth in double underline and strikethrough on the revised bylaws, attached hereto as Exhibit A. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco hereby adopts the revised Measure W Citizens' Oversight Committee Bylaws, as set forth in Exhibit A, attached hereto and incorporated herein. At a meeting of the City Council on 12/14/2016, a motion was made by Liza Normandy, seconded by Richard Garbarino, that this Resolution be approved.The motion passed. Yes: 5 Vice Mayor Normandy, Councilmember Garbarino, Councilmember Matsumoto, Mayor Gupta, and Councilmember Addiego Attest by 1' _ Krista ine City of South San Francisco Page 1 11 CITY OF SOUTH SAN FRANCISCO MEASURE W CITIZENS' OVERSIGHT COMMITTEE BYLAWS A. Committee Established. There is hereby established in the City of South San Francisco, pursuant to Ordinance No. 1503-2015, a Measure W Citizens' Oversight Committee hereinafter, "Committee"). Measure W, identified as the South San Francisco Fiscal Stability and Essential Services Ordinance, adopted a one-half cent retail transactions and use tax. The Committee shall report periodically to the City Council regarding the collection and expenditure of Measure W revenue. B. Selection of Members. 1. Members of the Committee shall be appointed by majority vote of the City Council. 2. The Committee shall consist of five members. a. Three members shall serve an initial term of four years. b. Two members shall serve an initial term of three years. c. Following service by the Committee members of the foregoing initial terms, all members will subsequently serve four-year terms. 3. Any South San Francisco resident or representative of a business located in South San Francisco, who is 18 years of age or older, is eligible to be appointed to the Committee. The City Council may give preference to applicants with financial management experience. 4. Th- i I n . m.•.rit vote m, as lint an ex-.fi is non-votin• alt-rn. - member to the Committee "Alternate" . In the event that the Ci Council as.oints an Alternate,the Alternate may attend Committee meetinns but will not count towards a quorum and shall not vote on items before the Committee. C. Committee Actions. 1. The Committee shall meet with the City's independent auditor at the initiation of each annual financial audit process to outline issues of particular interest to the Committee, and to be briefed on the independent auditor's plan for the audit scope and schedule. 2. The Committee shall review the annual audit prepared by the City's independent auditor related to the prior fiscal year's collection and expenditure of revenue from the tax authorized by Measure W. The Committee shall meet with the City's independent auditor to receive the audit findings in advance of the presentation of the final audit report to the City Council. The Committee shall report in writing to the City Council regarding the accuracy of the auditors' findings regarding the Measure W revenues and expenditures. 3. The Committee's annual report shall offer independent verification regarding the independent auditor's findings related to whether the funds collected are being spent in 12 accordance with the terms of Measure W. The Committee's report shall be transmitted through the City Manager's Office to the City Council for consideration at a City Council meeting. The Committee shall serve in an advisory role to the City Council. 4. In order to preserve the integrity and independence of the oversight process, Committee members shall not have a formal role in contracting, project management, or any other aspect related to the use of revenue generated pursuant to Measure W. 5. The City Manager or his or her designee shall provide any reasonable administrative or technical assistance so that the Committee shall be able to fulfill its duties. D. Meetings. The Committee shall adopt a regular meeting schedule that shall include, at minimum, one annual regular meeting for the purposes of reviewing the annual audit. The Committee may schedule additional meetings as necessary. 1. The Committee is subject to the Ralph M. Brown Act. (Government Code Section 54950 et seq.)Notice must be given of all Committee meetings and the meetings shall be open to the public. The City Manager or his or her designees shall arrange for any necessary training and will assist the Committee in complying with the Brown Act. E. Attendance. Committee members are expected to attend all regular meetings and special meetings as needed. Committee members are expected to attend all committee-related orientation and training sessions (including ethics training and audit review training). F. Committee Operations. The City Council shall select two Committee members to serve as the initial chair and vice-chair of the Committee until the Committee selects its own chair and vice-chair. At its first regular meeting of each subsequent calendar year, or as soon as practicable thereafter,the Committee shall select members to serve as chair and vice-chair. The City Manager or his or her designee shall serve as the Committee's secretary. The secretary will be responsible for the posting and distribution of agendas and the taking of minutes. Approved minutes shall be made available to the public. G. Vacancies. In the event of removal approved by the City Council, resignation, or death of a Committee member, the City Council shall appoint a person to fill the vacant Committee member seat. In the event of a vacancy, the City Council may anoint the Alternate to the vacant Committee member position. 13 Measure W Oversight Committee Scope of Responsibilities Claire Lai, Assistant City Attorney February 5, 2020 14 City of South San Francisco Background Measure W “To maintain South San Francisco services, including maintaining neighborhood police patrols/9-1-1 response, programs for seniors/disabled residents, crime/gang suppression programs, repairing potholes/streets, maintaining youth/teen educational/recreational programs, providing a police operations center that meets earthquake safety codes, and other city services; shall South San Francisco levy a 1/2 cent sales tax for 30 years, with authority to incur debt to accelerate projects, annual audits, citizens' oversight, no funds for Sacramento and all funds for South San Francisco?” 15 City of South San Francisco Background Measure W •Half-cent sales tax (0.5%) approved by voters on November 3, 2015 Tax went into effect April 1, 2016 •A General Tax for any legitimate governmental purpose Help maintain and enhance local services Voter Priorities: Neighborhood police patrols/911 response Repairing potholes/streets Police operations center that is earthquake safe Programs for seniors, disabled residents, and crime suppression Maintaining youth/teen educational/recreational programs 16 City of South San Francisco Background Requires the City Council to appoint a Citizen’s Oversight Committee 17 City of South San Francisco Citizen’s Oversight Committee (“COC”) •SSFMC section 4.36.140 –Appointment and bylaws set by City Council –Five-person committee of SSF residents or business representatives –Intent: Review and report on the revenue received and expenditure of funds from the Measure W tax. •Making sure that Measure W funds are used in alignment with the services and projects stated in the ballot measure language. •Not project-specific Appointment of the COC 18 City of South San Francisco Citizen’s Oversight Committee (“COC”) •Standing Advisory Committee –Subject to the Brown Act/open meeting laws –Subject to state conflict of interest laws •Bylaws adopted in 2016 –Member appointment/selection –Meeting schedule, attendance, operations –Scope of Committee actions and responsibilities Appointment of the COC 19 City of South San Francisco Scope of COC Responsibilities The jurisdiction of the COC is limited to what has been assigned to it by the City’s voters and the City Council. 20 City of South San Francisco Scope of COC Responsibilities 1. Review the City’s annual financial audit and findings on Measure W Tax –City undergoes an annual audit of its financial statements and review, among other things, collection and expenditure of Measure W tax revenue. –COC shall “meet with the independent auditor to receive the plan for the audit and the audit findings” related to Measure W tax collection and expenditure. (SSFMC 4.36.140; Bylaws section (C)(2)) The COC’s responsibilities are: 21 City of South San Francisco Scope of COC Responsibilities 2. Report to the City Council regarding auditors’ findings on Measure W Tax –The COC reports on whether Measure W funds are being spent in accordance with the terms of Measure W. The voters asked the COC to make sure that Measure W funds are spent as contemplated by the ballot measure. (SSFMC 4.36.140; Bylaws section (C)(2)) The COC’s responsibilities are: 22 City of South San Francisco Scope of COC Responsibilities •Measure W is a general tax –The funds generated from the measure may be used for any legitimate governmental purpose –Not restricted by the language of the ballot measure or another form of financing (i.e. bonds) –Ballot lists examples of voter priorities •Improper use = spending the money for a non-public purpose Improper Use of Measure W funds? 23 City of South San Francisco Scope of COC Responsibilities •Having a formal role in contracting, project management, or any other aspect related to the use of Measure W tax revenue. –This is to preserve the integrity and independence of the oversight process. (Bylaws section (C)(4)) •Reviewing or auditing case-by-case the projects funded by Measure W –The COC does not determine whether Measure W funds are properly spent at the project level. The COC is not tasked with: 24 City of South San Francisco Scope of COC Responsibilities Questions? 25 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:20-78 Agenda Date:2/5/2020 Version:1 Item #:3. Presentation to the Measure W Citizens’ Oversight Committee on Financial Highlights for FY2018-2019 and Overview of the Civic Center Campus Financing.(Janet Salisbury, Director of Finance) City of South San Francisco Printed on 1/8/2024Page 1 of 1 powered by Legistar™26 Civic Center Campus Financing Presentation to Measure W Citizens’ Oversight Committee Janet Salisbury, Director of Finance 05 FEBRUARY 2020 27 AGENDA 1 Financial Highlights 2 Funding the Civic Campus 3 Overview of Bond Issuance 4 Q&A 228 Citywide Financial Highlights for FY2018-19 1Financial Highlights General Fund* Operating Surplus = $19.5 million –Revenues (excluding transfers) = $121.9 million –Expenditures (excluding transfers) = $102.5 million Measure W Sales Tax Revenues = $12.6 million –Represents $1.5 million (13%) increase from prior year Pension Liability = $182.7 million OPEB Liability = $ 60.5 million Combined = $243.2 million * Excludes Measure W Sales Tax 3 29 General Fund Revenues Revenue Comparison (FY17-18, FY18-19 Adopted Budget, FY18-19) 38.66 19.60 17.09 5.00 4.47 15.38 0.93 2.87 11.56 6.10 0.33 0 5 10 15 20 25 30 35 40 $ m i l l i o n FY2017-18 Results FY2018-19 Adopted Budget FY2018-19 Results 4 1Financial Highlights TOTAL FY2018-19 Revenues (excluding transfers): $121.9M 30 General Fund Expenditures Expenditure Comparison (FY17-18, FY18-19 Adopted Budget, FY18-19) 0.26 0.80 0.12 0.96 5.36 3.17 1.27 1.75 28.62 28.48 6.83 16.80 5.66 14.32 0 5 10 15 20 25 30 $ m i l l i o n FY2017-18 Results FY2018-19 Adopted Budget FY2018-19 Results 5 1Financial Highlights TOTAL FY2018-19 Expenditures (excluding transfers): $102.5M 31 Funding the Civic Campus 2Funding the Civic Campus 6 Description Pre-Construction Phase I: Police Station Phase II: Library, P&R, Council TOTAL Estimated Cost $ 34,000,000 $ 56,800,000 $ 120,000,000 $ 210,800,000 Sources of Funds Monies Already Spent (6/30/2019)14,313,947 14,313,947 Bond Proceeds 53,800,000 61,200,000 115,000,000 Infrastructure Reserves*22,400,000 22,400,000 Public Safety Impact Fee 1,000,000 1,000,000 PEG Funds 1,031,883 1,031,883 Measure W Cash (6/30/2023)**19,686,053 24,711,420 44,397,473 Asset Seizure 2,000,000 2,000,000 Childcare/Library Improvement 474,032 474,032 Library –Project READ 254,256 254,256 Fundraising / Future GF Surplus 9,928,409 9,928,209 TOTAL $ 34,000,000 $ 56,800,000 $ 120,000,000 $ 210,800,000 * Includes $10.9 million requested appropriations from FY2018-2019 General Fund surplus. ** Assumes Measure W proceeds of $12.6 million in FY2019-20 with a 2% compounding growth rate through 6/30/2023 32 Bond Issuance Summary 3Overview of Bond Issuance Two Tranches: –Series 2020A, Police Station = $53.8 million in proceeds –Series 2020B, Civic Campus = $61.2 million in proceeds Estimated All-in Total Interest Cost = 3.47% (assumes Jan. 14 market conditions plus 50 bps) Estimated Delivery Date Expenses for Series 2020A –Cost of Issuance (COI) = $156,800 –Underwriter’s Discount = $140,000 Cost of Issuance for Series 2020B offset by Interest Savings –Underwriter’s Discount is almost directly correlated with Par Amount so not a cost consideration for two-pronged approach –Expectation that there will be similar COI for 2020B –6 month interest on $60M > $1 million Lease Revenue Bond Structure 7 33 Why a Lease Revenue Bond? City of South San Francisco cannot issue bonds payable from its General Fund without a two-thirds vote of the electorate However, the City does have general contracting powers that allow it to enter into a long-term lease of real property for its use To finance new public facilities, general law cities in CA can use the Marks-Roos Local Bond Pooling Act of 1985 (JPA Act), which allows the City to form a JPA to act as the issuer of bonds on the City’s behalf. –City South San Francisco Public Facilities Financing Authority (SSF JPA) approved by Council on Dec. 11, 2019 –SSF JPA has power to issue bonds without a vote of the electorate Real Property pledged for financing: –Orange Memorial Park –Miller Street Garage Asset seizure of real property is highly unlikely 8 3Overview of Bond Issuance 34 City’s Financing Team 9 3Overview of Bond Issuance Role Firm Issuer SSF Public Facilities Financing Authority Municipal Advisor Sperry Capital Bond Counsel / Disclosure Counsel Stradling Yocca Carlson & Rauth Underwriter Stifel (Senior Manager) Citi / Raymond James (Co-Managers) Underwriter’s Counsel Quint & Thimmig Bond Trustee / Paying Agent BNY Mellon Credit Rating Agency Standard & Poors 35 10 3Overview of Bond Issuance Key Milestones -2020 February 12 –Council Approval of Legal Documents / POS February 12 –JPA must also approve Legal Documents / POS Council / JPA Approval March 11 –Bond proceeds received by City CLOSING February 14 –POS circulated to Investors February 26 –Pricing of Bonds Marketing / Pricing of Bonds January 21 –Rating Agency Presentation to S&P February 3 –Ratings Requested Ratings Process 36 Why Ratings Process is a Big Deal Credit rating agencies provide independent appraisal of the credit quality and likelihood of timely repayment of a bond issue Higher the Credit Rating = Lower the Interest Rate (Borrowing Cost) City seeking S&P Rating Only –Given size of bond issuance, only one rating necessary Credit Considerations –Overall financial health of City –Measure W sales tax revenue –Future growth projections and stress tests on financial projections –Pension/OPEB liability 11 AAA AA+AA AA-A+A A-BBB+BBB BBB- 3Overview of Bond Issuance 37 Estimated Debt Coverage from Measure W Cashflow $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 FY19 Measure W Receipts = $12.6 million 13% Dot Com drop 12 3Overview of Bond Issuance SERIES 2020A –Police Station SERIES 2020B –Civic Campus 19% Great Recession 38 QUESTIONS 13 4Q&A 39