TO:
Board of Directors of Capital Improvements Corporation
THROUGH:
Talyn Mirzakhanian, Chief Administrative Officer
FROM:
Libby Bretthauer, Chief Financial Officer
SUBJECT:Title
Consideration of a Resolution Approving Trust Agreements, a Site and Facilities Lease, Lease Agreement, Contract of Purchase, and Assignment Agreement, and Authorizing the Taking of Certain Actions in Connection with the Execution and Delivery of Not-to-Exceed $13.4 Million Certificates of Participation to Reimburse the City’s General Fund for the Purchase of 400 Manhattan Beach Boulevard and Not-to-Exceed $3.8 Million Certificates of Participation to Reimburse the City’s General Fund for the Purchase of Public Safety Radio Communications Equipment (Chief Financial Officer Bretthauer).
(Estimated Time: 10 Min.)
ADOPT RESOLUTION NO. CIC-14
Body
_________________________________________________________
RECOMMENDATION:
Staff recommends that the Corporation Board of Directors adopt Resolution No. CIC-14 approving the issuance of Not-to-Exceed $13.4 Million Certificates of Participation to Reimburse the City’s General Fund for the Purchase of 400 Manhattan Beach Boulevard and Not-to-Exceed $3.8 Million Certificates of Participation to Reimburse the City’s General Fund for the Purchase of Public Safety Radio Communications Equipment, and approving the execution and delivery of related documents. Resolution No. CIC-14 approves Trust Agreements, a Site and Facilities Lease, Lease Agreement, Contract of Purchase, and Assignment Agreement.
FISCAL IMPLICATIONS:
There are no fiscal implications associated with the recommended action.
BACKGROUND:
The Manhattan Beach Capital Improvements Corporation was formed in 1996 to facilitate issuance of debt for improvements to the water and wastewater systems. Since then, it has been used for the Police/Fire Facility, Metlox Improvements, Marine Avenue Sports Fields and Fire Station No. 2.
City Councilmembers serve as CIC Board Members. The bylaws of the Corporation state that the President and Vice President of the Corporation must be elected from the members of the City Council. Typically, the current Mayor serves as the President, with the Mayor Pro Tem serving as the Vice President. On August 5, 2025, the Capital Improvements Corporation Board will elect a new President and Vice President. Appointed positions include the City Manager serving as the Capital Improvements Corporation’s Chief Administrative Officer, and the City’s Finance Director serving as the Chief Financial Officer.
DISCUSSION:
In order to issue the 2025A (400 MBB Acquisition) and 2025B (Public Safety Radios) debt financing, two new series of Certificates of Participation (2025A and 2025B COPs) will be issued utilizing a lease-leaseback structure, where the lease payments are payable from the General Fund.
There are several documents associated with the refinancing. In the interest of source reduction, the documents to be approved are presented with the General Business item on the City Council agenda.
Staff is requesting that the Board of Directors adopt Resolution CIC-14 approving the financing of the 2025A 400 MBB Acquisition and 2025B Public Safety Radios Certificates of Participation. If approved, the financing is expected to be completed by August 27, 2025.
PUBLIC OUTREACH:
After analysis, staff determined that public outreach was not required for this issue.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary. The City’s Bond Counsel has prepared the draft resolution and approved as to form.
ATTACHMENT:
1. Resolution No. CIC-14