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HomeMy WebLinkAboutA016 - Council Action form dated August 8, 2017 ITEM # 37 DATE: 08-08-17 COUNCIL ACTION FORM SUBJECT: RESOLUTION APPROVING OFFICIAL STATEMENT FOR GENERAL OBLIGATION CORPORATE PURPOSE BONDS, SERIES 2017A, SETTING DATE OF SALE FOR AUGUST 22, 2017, AND AUTHORIZING ELECTRONIC BIDDING FOR THE SALE BACKGROUND: The FY 2017/18 Budget and Council-approved changes include General Obligation (G.O.) Bond-funded capital improvement projects in the amount of $7,521,000. The City Council held public hearings for the issuance of these bonds on March 7, 2017, and for the refunding bonds on August 8, 2017. Council action is now required to approve the official statement, set the date of sale for August 22, 2017, and authorize electronic bidding. The Official Statement, or "Preliminary Official Statement," is the offering document for municipal securities, in preliminary form, which does not contain pricing information. The Statement provides several financial disclosures and other information about the City. This "Preliminary Official Statement" is on file in the City Clerk's Office and can be viewed on the City's website. Additionally, Council is asked to approve electronic bidding as the method to provide a secure and highly competitive process for the sale of the bonds. Projects to be funded by this bond issue include the following: Grand Avenue Extension $ 4,000,000 South Duff Improvements 276,000 Arterial Street Improvements 620,000 Collector Street Improvements 950,000 Asphalt Street Improvements 850,000 Downtown Street Improvements 250,000 Accessibility Enhancement Program 125,000 W Lincoln Way Intersection Improvements 450,000 Subtotal Tax Supported Bonds $ 7,521,000 Refunding Bonds 4,345,000 Issuance Cost and Allowance for Premium 104,000 Grand Total—2017/18 G.O. Issue $11,970,000 ALTERNATIVES: 1. Adopt the attached resolution approving the Official Statement for General Obligation Corporate Purpose Bonds, Series 2017A, setting the date of sale for August 22, 2017, and authorizing electronic bidding for the sale. 2. Refer the Official Statement back to City staff for modifications. CITY MANAGER'S RECOMMENDED ACTION: Issuance of these bonds is necessary in order to accomplish the City's approved capital improvements for the current fiscal year. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1 as stated above.