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File #: 21-0199    Version: 1
Type: Gen. Bus. - Staff Report Status: Passed
In control: City Council Regular Meeting
On agenda: 7/20/2021 Final action: 7/20/2021
Title: Consideration of a Resolution Approving the Issuance of Certificates of Participation Not-to-Exceed $9.7 Million to Reconstruct Fire Station No. 2 and Related Documents (Finance Director Charelian). ADOPT RESOLUTION NO. 21-0063
Attachments: 1. Resolution No. 21-0063, 2. Resolution No. CIC-10, 3. Second Supplement to Trust Agreement, 4. Second Amendment to Site and Facilities Lease, 5. Second Amendment to Lease Agreement, 6. Certificates Purchase Contract, 7. Official Statement, 8. Amendment to Assignment Agreement, 9. Continuing Disclosure Certificate, 10. Good Faith Estimates
TO:
Honorable Mayor and Members of the City Council

THROUGH:
Bruce Moe, City Manager

FROM:
Steve S. Charelian, Finance Director
Julie Bondarchuk, Financial Controller
Libby Bretthauer, Financial Services Manager

SUBJECT:Title
Consideration of a Resolution Approving the Issuance of Certificates of Participation Not-to-Exceed $9.7 Million to Reconstruct Fire Station No. 2 and Related Documents (Finance Director Charelian).
ADOPT RESOLUTION NO. 21-0063
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council adopt Resolution No. 21-0063 approving the issuance of Certificates of Participation to Reconstruct Fire Station No. 2 and approving the execution and delivery of related documents. Resolution No. 21-0063 approves a Second Amendment to a Site and Facilities Lease, a Second Amendment to the Lease Agreement, a Second Supplement to the Trust Agreement, a Certificate Purchase Contract, an Official Statement, a Continuing Disclosure Certificate; and authorizes the taking of certain actions in connection with the issuance of Certificates of Participation in an amount not to exceed $9.7 million.
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FISCAL IMPLICATIONS:
The design development phase of this project was budgeted in the CIP Fund for $777,441 and supported by a General Fund transfer of $540,000 to expedite the project. While some capital projects may be funded with existing resources, larger and costlier projects with extended useful lives often require the issuance of debt to spread the costs over multiple years for affordability and to achieve intergenerational equity. Construction costs for the project can be funded by the City through the sale of tax-exempt Certificates of Participation (COPs).

The fiscal year (FY) 2021-2022 Adopted Budget included debt service estimated at $450,000 per year over a 30-year term at current historically low interest rates based on the original construction estimate of $9.5 millio...

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