Agdapkt 2010-12-06 clsd and regular

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� i 7.0 Page 1 REPOR T To the Honorable Mayor and City Council From the Cit Mana er December 6, 2010 SUBJECT Sale of bonds pursuant to the Mello-Roos Community Facilities Act of 9982, as amended (the Act), to finance public infrastructure necessary for the development of the One Marina project RECOMMENDATIONS Approve, by resolution, authorization for the issuance and sale of Special Tax Bonds for and on behalf of the City of Redwood City Community Facilities District No. 2010-1 (One Marina) and approval of all documents and agreements, including the Preliminary Official Statement, necessary to issue such bonds. BACKGROUND This is the third of three meetings at which actions have been taken or requested of the City Council in connection with the initial financing of public infrastructure for the One Marina Project. At its most recent meeting (September 13, 2010) on the matter, the Council held a public hearing and subsequently adopted a resolution to create the City of Redwood City Community Facilities District No. 2000-1 (District), deemed it necessary to sell bonds, opened and tabulated the ballot submitted by the single property owner, and adopted a resolution declaring an affirmative election result and an ordinance levying special taxes within the District. Tonight's Actions Principal documents relating to the first in a proposed series of three bond sales to finance public infrastructure for the One Marina Project are substantially complete. The Council is being asked to approve those documents in substantially final form in order to allow staff to implement the sale of bonds. With the exception of the Preliminary Official Statement, which is attached, all other documents are on file with the City Clerk. Summary descriptions of all documents are included as an attachment to this staff report (Attachment 2). The resolution that staff recommends the Council approve will authorize the underwriter to distribute the preliminary official statement. The resolution also provides that the bonds may be sold if the following conditions are met: the principal amount of the total first series of bonds issued in connection with the project does not exceed $8 million, the value to lien ratio is not less than 6:1, the underwriter's discount does not exceed 2.0% of the par amount of bonds sold, and the true interest cost (a time-discounted measure of the aggregate interest cost on the bonds) on the bonds does not exceed 7.25%. The following is a list of the agreements that will be executed by the City Manager or Finance Director in connection with the sale of these bonds: