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/d' �3Z <br /> Tonight's Actions <br /> Principal documents relating to the sale of bonds to finance traffic circulation <br /> improvements in Redwood Shores are substantially complete. The Council is being <br /> asked to approve those documents in substantially final form in order to allow staff to <br /> implement the sale of bonds in an amount sufficient to pay for Phase 1 improvements <br /> and related financing expenses. This will be the first of two anticipated bonds sales. <br /> Descriptions of those documents are included as an attachment to this staff report. A <br /> copy of each of these documents is available for your review in the Council study. <br /> Staff will be authorized to implement this first sale of bonds so long as the principal <br /> . amount of bonds does not exceed $5,500,000, the undennrriter's discount does not <br /> exceed 1.5% of the par amount of bonds sold, and the true interest cost (a time- � <br /> discounted measure of the aggregate interest cost on the bonds) does not exceed <br /> 7.0%. <br /> Project <br /> The Phase 1 project consists primarily of improvements to a number of intersections <br /> that will improve the ingress and egress of traffic in the Redwood Shores commercial <br /> areas. <br /> Financial Advisor's Fee <br /> The original agreement with William Euphrat Municipal Finance called for a fee of <br /> $32,500 to serve as financial advisor on this project. At the time the fee was negotiated <br /> in August 1997, the City anticipated issuing only one bond issue for $3,000,000 for this <br /> project. Inasmuch as the scope of the financing has increased and we now anticipate <br /> two bond issues for a total of $10,000,000, Mr. Euphrat is requesting an additional <br /> $12,500 for his services. Given the increased scope of this project and the protracted <br /> property owner negotiations for which Mr. Euphrat provided support, staff concurs with <br /> this request for a higher fee. Mr. Euphrat's fee will be paid from the bond proceeds. <br /> Future Actions <br /> When the second phase of the Redwood Shores Traffic Improvement Program is ready <br /> for construction, staff will bring another bond issue to the Council for its approval in <br /> order to fund construction. <br /> Fiscallmpact ' <br /> The sale of bonds will provide funding for the Phase 1 construction contract and will <br /> provide funds to reimburse the City for planning and engineering expenditures incurred <br /> to date. All District formation and bond issuance costs will also be paid from the <br /> proceeds of the bonds. <br /> In addition, the City will incur annual bond trustee fees, annual rebate calculation fees, <br /> audit expenses, and administrative costs associated with classifying properties within <br /> the District, calculating the annual special tax levies for taxable parcels within the <br /> District, and preparing and transmitting to the County a list of special tax levies to be <br /> placed on the secured tax roll. These costs will be recovered from the property owner <br /> or owners from the proceeds of special taxes collected by the County. The Finance <br /> Department might incur indirect costs to manage these activities that may not be <br /> recovered with charges to the administrative budget of the District, although the Finance <br /> Department is authorized to charge the District for these activities. If unreimbursed <br /> 2 <br />