HomeMy WebLinkAbout1997-07-08; City Council; 14257; Carlsbad Ranch Assessment District.
P 3 0
E
%
. .
p
2
d
Y
s
2ll-Y OF CARLSBAD - AGENuA BILL
AB# J‘tI!2S? m:
CARLSBAD RANCH ASSESSMENT DISTRICT 95-1 MTG. 07-08-97 ACCEPTING BIDS FOR SALE OF BONDS AND
APPROVING BOND DOCUMENTS DEPT. CM
RECOMMENDED ACTION:
CITYMGR +---
Adopt Resolution No. 97-53 oaccepting bid for sale of bonds, accepting terms and conditions, approving form
of bond documents and authorizing issuance of special assessment bonds.
ITEM EXPLANATION:
On March 25, 1997 the City Council adopted a resolution stating its intent to form an assessment district to
fund certain improvements serving the Carlsbad Ranch area. At that time the Council received the report of the staff, Assessment Engineer, and Bond Counsel, describing the project and the district formation process in
detail, and set the date and time for two public hearings.
The first public hearing was held on May 13, 1997. At that meeting the Council received comments from one
speaker, David Meyer, representing The Carlsbad Ranch Company, the developer of Carlsbad Ranch. No
protests were filed with the City.
On June 3, 1997 the second, and final, public hearing on the formation of the Carlsbad Ranch Assessment
District was held. Ballots were counted and were found to be 100% in favor of formation of the district. No
protests were received in any form. Council adopted resolutions confirming the amount of the assessment to be placed against each parcel, authorizing the recordation of the necessary documents, and approving the sale
of bonds by competitive bid to pay for improvements within the district.
On June 27, 1997 the staff and the City’s financial advisor, Carl Kadie, will conduct a tour of the Carlsbad
Ranch Assessment District area for any interested bond buyers. This tour is intended to introduce potential buyers to the property, provide evidence of the development on the Carlsbad Ranch, and improve investor
confidence in the project in general.
On July 8, 1997 the City staff and our Financial Advisor will accept bids from interested bond buyers. Carl
Kadie will review the bids with City staff, and will determine the bid that provides the City with the lowest
interest costs. At the Council meeting of July 8, 1997 staff will present the results of this biding process to the Council for their approval. At that time the Council will insert the name of the successful bidder on the second
page of the Resolution, under Section 4.
In addition to accepting the lowest bid for the bonds, the Council will be asked to approve the form of the Bond
Indenture. This is the document which generally sets the rules under which the bonds associated with
Assessment District 95-1 will be administered. The indenture spells out the procedures for registration, the
date of the bonds, maturity schedules, payment process, and many other administrative issues. The attached resolution will approve the form of this indenture, subject to any minor changes which may be later approved by the City Manager after consultation with the City Attorney and Bond Counsel.
The Council will also be approving the form of the Preliminary Official Statement (POS). This document describes the bonds, the project, and the general terms and conditions which will affect the Administration of the bonds over time. In addition, the POS is the document which provides the necessary disclosure of all pertinent facts related to the issue to any bond buyer. The content of the POS (and the final Official Statement
which is published following the sale of the bonds) is extremely important to the public because this is the single document which brings together all information related to the issue that may affect an investor’s decision
to purchase these bonds.
On July 22, 1997 the City will complete the sale of the bonds and receive payment from the successful bidder under the terms and conditions of the sale as approved by the City Council. At that time funds will be distributed by the trustee to the various parties who will be reimbursed from the proceeds of this bond issue.
I
, ’ PAGE 2 OF AGENDA dlLL NO. I ‘i; 25 “7
Staff recommends that Council adopt the attached resolution, and after receiving the financial advisor’s report
on the results of the bidding, insert the name of the low bidder in section 4 of the resolution.
FISCAL IMPACT:
The Carlsbad Ranch Assessment District 95-l will provide funding for the public improvements which have been installed as part of the Carlsbad Ranch project. The bond proceeds will provide funding for the
improvements, assessment engineering and other consultants, bond counsel, and other related costs. In past meetings staff has mentioned that the issue would not exceed $15.6 million. The total amount of the bonds
sold is expected to be closer to $14 million. This is due to the receipt of cash payments or requests to reduce
the amount of the reimbursement on the part of the developer during the cash collection period. No City funds are committed to this project.
EXHIBITS: &u-ad =f-hlY ;fi afls
1.
2. 3.
Preliminary Official Statement dated June 20, 1997 (on file with the City Clerk)
Bond Indenture dated June 5. 1997 (on file with the City Clerk)
Resolution No. 97-536 _ Accepting Bid for Sale of Bonds, Accepting Terms and Conditions,
Approving Form of Bond Documents and Authorizing Issuance of Special Assessment Bonds,
2