Title
Report regarding a resolution approving the services of three underwriting firms: Stifel as Senior Manager, and Citi and Raymond James as Co-Managers for the Measure W Community Civic Campus project financing, and authorizing the City Attorney to retain bond and disclosure counsel. (Justin Lovell, Financial Services Manager).
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RECOMMENDATION
Recommendation
It is recommended that the City Council adopt a resolution approving the services of three underwriting firms: Stifel as Senior Manager, and Citi and Raymond James as Co-Managers for the Measure W Community Civic Campus project financing, and authorizing the City Attorney to retain bond and disclosure counsel.
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BACKGROUND
Measure W was approved by voters as a half-cent sales tax in November of 2015. The tax became effective April 1, 2016 and has a 30-year term. The Measure W sales tax revenue is used to maintain and enhance locally controlled City services, including the Paving Program and funding the Community Civic Campus.
The Community Civic Campus includes design and construction of a new Library, Parks & Recreation and Community Theater/City Council Chambers facility, a park, and a new Police station. It also includes design of a new Fire station, which will be built at a future time to be determined.
Construction of the first phase is scheduled to begin in January 2020 with the Police station. Construction of the second phase is scheduled to begin fall 2020.
A majority of the construction costs will be funded by Measure W revenues. Current estimates include $115 million of the construction cost will be funded through the issuance of lease revenue bonds or certificates of participation. These bonds will be secured by a pledge of lease payments in respect to an essential asset that is owned by the City. In this case, the leased asset is expected to be the Community Civic Campus itself. Measure W sales tax revenue will be used as the budgetary source of lease payments.
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