AgdaPkt 2003-07-28 - Laserfiche WebLink

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REPORT To the Honorable Mayor and City Council From the City Manager July 28, 2003 Subject Approval of a resolution authorizing the issuance of special tax bonds for the Ralston Avenue /U.S. 101 freeway interchange reconfiguration project (Phase II of the Shores Transportation Improvement Project) in the aggregate amount not to exceed $8,490,000 and approving certain financing documents in substantially final form and taking certain actions in connection therewith. Recommendation That the City Council, acting as the legislative body of the Redwood Shores Community Facilities District No. 99 -1, adopt a resolution approving the sale of special tax bonds of the district in an amount sufficient to fund Phase II construction for the Shores Transportation Improvement Project and associated financings costs. Background In April 1999 the City Council established a Mello -Roos special tax district (the "District ") and authorized the levy of a special tax and the issuance of bonds by the District for the purpose of financing various traffic improvements in and adjacent to the Redwood Shores area of the City. Property owners in the District affirmed the creation of the District, the levy of the special tax and the sale of bonds for these traffic improvements in July of 1999 with a 92% majority vote. Bonds were issued in the amount of $5,045,000 to fund Phase I traffic circulation improvements in Redwood Shores, which improvements have since been completed. The Phase II project consists of a redesign of the Ralston Avenue /U.S. 101 freeway interchange and construction of a direct - access freeway interchange serving Belmont's Island Park business park, along with incidental traffic circulation improvements. Phase II is being funded by federal grants, a contribution from the City of Belmont, and the sale of Phase II bonds by the District. Construction plans have been advertised and the award of contract is expected to be brought to the Council on August 11, 2003. In order to assure funds for the award of the construction contract, staff expects to implement a bond sale in August. Tonight's Actions Principal documents relating to the sale of bonds to finance traffic circulation improvements in Redwood Shores 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 in an amount sufficient to pay for Phase II improvements and related financing expenses. This will be the final bond sale for this project. Descriptions of those documents are included as an attachment to this staff report. Staff will be authorized to implement this first sale of bonds so long as the principal amount of bonds does not exceed $8,490,000, the underwriter's discount does not exceed 1.175% of the par amount of bonds sold, and the true interest cost (a time-