CITY COMMISSION AGENDA ITEM

Department:

Finance Department

Commission Meeting Date:  March 5, 2019

Staff Contact:

Jeremey Willmoth, Finance Director

Recommendations/Options/Action Requested:

Declare an emergency and adopt on first and second readings Ordinance No. 9652, providing for the issuance of General Obligation Bonds, Series 2019-A of the City of Lawrence, Kansas to Commerce Bank. 

Consider adopting Resolution No. 7282 prescribing the form and details of and authorizing and directing the sale and delivery of General Obligation Bonds, Series 2019-A, of the City of Lawrence, Kansas.

Consider adopting Resolution No. 7283 authorizing and directing the issuance, sale, and delivery of General Obligation Temporary Notes, Series 2019-I, of the City of Lawrence to Hutchinson, Shockey, Erley & Co.

Executive Summary:

On February 5, 2019 the City Commission authorized the issuance of general obligation bonds and general obligation temporary notes. All the projects have been previously discussed with the governing body and have been authorized by resolution.

The general obligation bonds and temporary notes will be sold using a competitive process. The City received six (6) bids for the General Obligation Bonds, Series 2019-A, with best bid submitted by Commerce Bank, with a true interest rate of 2.7744%. The City received five (5) bids for the General Obligation Temporary Notes, Series 2019-I, with the best bid submitted by Hutchinson, Shockey, Erley & Co., with a true interest rate of 1.9925%. The City will receive bids the morning of the March 5 and will update the memo once bids are received and the lowest bidder is determined.

Approval of Ordinance No. 9652 and Resolution No. 7282 and 7283 are the final actions necessary to set all of the final terms and conditions of the bonds and temporary notes, and provide for the sale of the bonds and temporary notes.

The sales are not complete until an ordinance is adopted naming the purchaser of the bonds. An ordinance does not go into effect until second reading unless the Governing Body declares an emergency. Therefore, staff is requesting the City Commission declare an emergency to adopt Ordinance on first and second reading on the night of the sale.

General Obligation Bonds, Series 2019-A

The general obligation bonds will fund the following projects:

1. Downtown Canopy Removal

2. Humane Society Grant

3. One Stop Shop (City Hall Riverfront)

4. Park & Recreation Facility Projects

5. Arts Center Improvements/ City Hall General Improvements

6. Traffic Calming

In addition to funding the project costs, the bonds will also fund financing costs for a total general obligation bond issue size of $3,995,648 $4,010,000 calculated as follows:

Project Costs	$3,891,666
Plus: Projected Issue Cost	118,334 103,982
Total Project Issue Size	$4,010,000 $3,995,648

General Obligation Temporary Notes, Series 2019-I

The temporary notes will fund the following projects:

1. Design for 19^th Street Reconstruction

2. East 9^th Street Improvements

3. Fire Medical Pavement Replacement

4. Fire Training Tower

5. ITC Exterior Repairs and HVAC

6. Parks & Recreation Facility Projects

7. Police Facility

8. Public Parking Improvements

9. Riverbank Stabilization

10. Sidewalk, Bike, Pedestrian Improvements, ADA Ramps

11. Street Maintenance

12. Street Improvements

13. Traffic Calming

In addition to funding the project costs, the temporary notes will also fund financing costs for a total temporary note issue size of $28,732,082 28,801,141 calculated as follows:

Project Costs	$28,600,000
Plus: Projected Issue Cost	201,141 132,082
Total Project Issue Size	$28,801,141 $28,732,082

The final costs have been updated based on the winning bids. The projected issue costs will be updated once bids have been received to reflect the final cost of issuance.

Strategic Plan Critical Success Factor

Effective Governance and Professional Administration

Sound Fiscal Stewardship

Commitment to Core Services

Fiscal Impact (Amount/Source):

All projects to be financed were included in prior year Capital Improvement Programs.  The debt service for the cost of improvements are included in the debt service fund beginning with the 2019 operating budget.

Attachments:

Ordinance No. 9652 - Updated 03/05/19

Resolution No. 7282 - Updated 03/05/19

Resolution No. 7283 - Updated 03/05/19

Project Authorization List

February 5, 2019 City Commission Meeting

Bid Tabulations and Best Bids (will be added March 5)

Reviewed By: (for CMO use only)

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