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HomeMy WebLinkAboutItem 4.4 Issue Bonds for Street Improvements (2) 34 0- ,�2-o CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: June 25, 1990 SUBJECT: Resolution Amending Resolution No. 32-90 - Declaring Intention to Issue Bonds for the Purpose of Providing Financing for Certain Public Street Improvements (Prepared by: Richard C. Ambrose, City Manager) EXHIBITS ATTACHED: Draft Resolution. RECOMMENDATION V Adopt Resolution. FINANCIAL STATEMENT: Through the adoption of this resolution, the City will be able to take advantage of tax exempt bonds for the purpose of financing public infrastructure improvements in the future. This will reduce the overall costs of constructing improvements for future assessment districts. DESCRIPTION: On March 26, 1990, the City Council adopted a resolution declaring intention to issue bonds for the purpose of providing financing for certain public street improvements. The purpose of this resolution was to put the City in a position to take advantage of tax exempt financing mechanisms for future infrastructure costs in those areas east of Dougherty Road. The City Attorney has recommended that this resolution be modified to include the phase "and any streets or roads connecting such parallel streets or roads with Interstate 580, including the extension of Hacienda Drive" . It is Staff's recommendation that the City Council adopt the attached resolution amending Resolution No. 32-90. ---------------------------------------------------------------------- COPIES TO: ITEM NO. �e RESOLUTION NO. - 90 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN DECLARING INTENTION TO ISSUE BONDS FOR THE PURPOSE OF PROVIDING FINANCING FOR CERTAIN PUBLIC STREET IMPROVEMENTS RESOLVED, by the City .Council of the City of Dublin, County of Alameda, California, that WHEREAS, the City of Dublin is authorized pursuant to the Improvement Bond Act of 1915, Section 8500, et seq. , of the Streets and Highways Code of California, the Mello-Roos Community Facilities Act of 1982 , Section 53311, et seq. , of the California Government Code, and other financing authorities (collectively, the "Acts") to issue and sell its bonds for the purpose of providing financing for certain public improvements; and WHEREAS, the City of Dublin intends to issue bonds under the Acts (the "Bonds") for the in of providing financing for public infrastructure improvements including, but not limited to, the construction of new streets, curbs, gutters, sidewalks and related water, sewer, storm drainage, utility, street light and traffic signal facilities together with all required landscaping and appurtenant improvements for streets or roads parallel to and north of Interstate 580 east of Dougherty Road and any streets or roads connecting such parallel streets or roads with Interstate 580, including the extension of Hacienda Drive (the "Project") and wishes to assure that amounts expended for the Project may be reimbursed from the proceeds of the Bonds; and WHEREAS, it is in the public interest, for public benefit and in furtherance of the public purposes of the City that City Council provide preliminary approval of the issuance of the Bonds for the aforesaid purposes. NOW, THEREFORE, BE IT RESOLVED by the Dublin City Council as follows: 1. The City hereby declares its intent to enter into such agreements and secure funding and to issue and sell the Bonds in such principal amount or amounts, from time to time, all as may be necessary to provide financing for the Project'. 2 . The City hereby declares its intent to use proceeds of the Bonds to pay for all costs of the Project which are incurred after the date of issuance of the Bonds as well as to reimburse the City or others for all amounts paid or incurred in connection , with the Project or the Bonds prior to bond issuance, including, but not limited to the following: (i) the cost of planning and designing the public improvements, including the cost of environmental evaluation; (ii) the expenses of making any analyses and tests in connection with the public improvements, including those to determine that the work, and any materials or appliances incorporated into it, comply with the specifications of the City; (iii) all compensation for work done by the engineers, attorneys, appraisers, and other consultants; (iv) all costs incidental to the construction, completion and inspection of the public improvements; (v) the costs of any acquisitions required by, .or related to, the Project; (vi) all costs of reimbursing advances made by or on behalf of the City for the Project construction; (vii) the cost of filing and recording documents, of title searching, description writing, and of preparing all documents and reports in connection with the Project; (viii) the cost of relocating or altering any public utility facilities; (ix) all costs related to the issuance of the Bonds, including, but not limited to, printing and advertising, costs of obtaining credit ratings, bond insurance premiums, fees for letters of credit and other credit enhancement costs, initial fees for registration of the Bonds; and (x) all administrative costs of the City in' connection with the Project or the Bonds. 3 . The City hereby determines that it intends to take all action necessary or advisable in connection with the issuance and sale of the Bonds. 4 . The Bonds shall be special obligations of the City payable solely from the sources described in the authorization of the Bonds and shall not constitute an indebtedness of the City or a loan of credit thereof within the meaning of any constitutional or statutory provisions. 5. The issuance and sale of the Bonds shall be upon such terms and conditions as may be subsequently determined by the City and shall be subject to completion of all required proceedings for the formation of any assessment and/or community facilities district(s) and for the issuance, sale and delivery of the Bonds by the City. 6. The proceeds of the Bonds shall include such related and necessary issuance costs, administrative expenses, debt service reserves and interest payments as maybe .required to successfully accomplish the financing. 7 . The City Council hereby finds that the adoption of this Resolution is a substantial inducement to the City and others to enter into agreements and to expend amounts for the Project and the Bonds in advance of issuance of the Bonds and that the Project will further the public purposes of the City. 8 . This Resolution is adopted solely for the purpose of assuring that the exclusion of interest on the Bonds for federal income tax purposes will not be adversely affected by reason of the use of proceeds of the Bonds for the reimbursement of costs paid or incurred in advance of the issuance of the Bonds, and the action of the City Council in adopting this Resolution shall not vest in the City or in others a right to require that the Bonds be issued or to require reimbursement in the event that the City Council, in its sole discretion determines, in the course of proceedings for issuance and sale of the Bonds, not to reimburse for costs paid or incurred in contemplation of issuance of the Bonds. PASSED, APPROVED AND ADOPTED this 25th day of June, 1990. AYES: NOES: ABSENT: Mayor ATTEST: City Clerk 114\resol\bonds.ehs