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HomeMy WebLinkAboutAgenda Report - June 15, 1988 (39)C O. .J C I L -C 0 M 'M U N I C A 1 _ O N YO: THE CITY COUNCIL FROM: THE CITY MANAGER'S OFFICE COUNCIL MEETING DATE JUNE 15, 1988 SUBJECT: REVIEW OF FINANCING OPTIONS FOR V4M 9JOUCEI WATER POLLUTION CONTROL PLANT EXPANSION PROJECT PREPARED BY: City Manager RECOMMENDED ACTION: That the City Council review financing options for the White Slough Mater Pollution Control Plant Expansion Project and take action as deemed appropriate. BACKGROUND INFORMATION- At the regular adic.urried meeting of Wednesday, June 8, 1988 during a discussion of the White Slough project, the topic of financing option was introduced. Mr. John Fitzgerald, of the firm of Seidler -Fitzgerald Public Finance, will be in attendance at Wednesday night's meeting to present these financing options in greater detail for the Council information and consideration. Attached (Exn;bit A) is a copy of the proposed schedule of this financing, as weil as a recap of three available options (Exnibi t B) . Respectfully submitted; Thomas A. Peterson City Manager TAP: br Attachments TXTA.07A 381 C UN Seidler -Fitzgerald Public Finance A Dkision of Scirller A-nr cc lbrk Stock E:cchwnge, Ile. CITY OF LODI 1988 wastewater Treatment Plant Expansion Project Cartifioates of Participation Bales Schedule (As of Jun* 9, 1988) Date 6/15/88 - City Council presentation on financing alternatives - City Council sets July S public hearing on adequacy of Environmental Impact Report (EIR) 7/6/88 - Public hearing on adequacy of EIR City Council certifies adequacy of EIR 7/13/88 Distribute P.O.S. and legal documents (20 copies) to City Clerk for inclusion in agenda packet for July 20 City Council meeting 7/20/88 City council approves financing, P.O.S. and legal documents, authorizes distribution of P.O.S. and authorizes City Manager and Finance Director to 'execute purchase contract subject to certain not -to -exceed parameters 7/21/88 Print and mail P.O.S. 7/25/88 Price issue 7/27/88 Sale of Certificates: purchase contract executed 8/24/88 Pre-closing (in Los Angeles) 8/25/88 Closing (in Los Angeles); proceeds received by City JUICE 1988 JULY 1988 AUGUST 1988 S N T N T F S S N T N T F S 5 ti T W T F S 1 2 3 4 1 2 1 2 3 4 5 6 5 6 7 8 9 10 11 3 4 5 6 7 8 9 7 8 9 10 11 12 13 12 13 14 1S 96 17 18 10 11 12 13 14 15 16 14 15 16 17 18 19 20 19 20 21 22 23 2L 25 17 18 19 20 21 22 23 21 22 23 24 25 26 27 26 27 28 29 30 24 25 26 27 7.8 29 30 28 29 30 31 31 Responsible Party City, S --1F City City City S - F, JHHW city S -F S -F City, S -F J'HFW All Part4.es Parties: city: City of Lodi JHHW: Jones Hall Hill & White (Special Counsel) S -F: Seidler -Fitzgerald Public Finance (Underwriter) MR: Mudge Rose Guthrie Aiexander & Ferdon (Underwriter's Counsel) 516 South Figueroa Street • Los Angeles, Colifionda 90071.3396 • ( 213) 624-4232 Seidler Fitzgerald Public Finance _A D,,iniun Inc. • Me.mber New Yi:uk Stcwk Exchange, Inc. CITY OF LOOI 1988 WASTEWATER TREATMENT PLANT EXPANSION PROJECT FINANCING ALTERNATIVES :JUNE 9, 1988 Project Costs City Contribution t.o ?reject Net Project to be Financed Date of Financing Land Acquisition Construction Period Start End T} -pe Of Financing Rating Avr:rage Interest Rate fife of Issue Principal Amount Use of Funds from Issue: Construction and Lund Acquisition. Less: City Contribution a: Interest Earned during Const. Net Construction from Issue Debt Service Reserve Fund Funded Interest Coat of Issuance Principal Amount Annual Cash Flow (Bag. FY 88/89) Average Net Debt Sorvice Less: Fund Earnings 0 9.2% $2.5MH Fund 1.5MH Fund 0.5MM Fund Net Cost to Sever Enterprise Financing Alternatives A. 910,931,000 5 $10,931,000 C $10,932,000 <-o-> <1,000,000> <2,000.000> 10.931 009 9,931,000 8,431,000 7127/$8 7/27/88 7/27188 2/i/69 211189 2/1/89 20 moa. 20 mos. 20 mos. 5/1/89 51,1/89 5/1/89 1/1/91 1/1/91 1/1/91 Cert. of Part. Cert. of Part. Cert. of Part. Unrated Unrated Unrated 8.2555 8.25% 8.25% 30 yrs. 30 yrs. 30 yrs. $21,495,000 $10,345,000 $ 9,200,030 10,931,000 10,931,000 10,931,000 <-0-> c1,000,000> <2,000,000> <1,149,000> 0,135,000 <1.122,000> 9,782,000 8,79 6,000 7,809,000 1,036,000 932,000 828,000 677.000 617.000 $I1,495,000 110,1ds.000 $ 9,200,000 $ 963,000 S 867,000 $ 770,000 t230,000> 515 South Figueroa Street - bora Angeles. Cal 0nVa 9W7l-3396 - ( 813) 684;-4 238 < 138,000> <46,000> 799 nnn