Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: John Maltbie, County Manager
Subject: Reimburse Expenditures from Proceeds of Indebtedness
RECOMMENDATION:
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Adopt a resolution declaring the official intent of the County of San Mateo to reimburse certain expenditures from proceeds of indebtedness.
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BACKGROUND:
On April 11, 2017, your Board authorized a Capital Financing Plan for eight new major capital projects. The $444.4 million financing plan will facilitate the reallocation of County staff from the Health System Campus to office space at County Center, the eventual exit of County offices from parts of the Hall of Justice to accommodate the Courts, and greater provision of services and accessibility to the public.
The County will avoid $41 million in market?rate lease payments over ten years by building facilities that it will eventually own after paying off the bonds. The new facilities will also be designed for more efficiency, with systems that will reduce operating and maintenance costs.
DISCUSSION:
The County intends to issue future debt in a two -phased approach. The first phase will include the Health System Campus, County Office Building No. 3 and Government Center Parking Structure No. 2. The second phase will include Cordilleras Mental Health, South San Francisco Health Campus, and the Maple Street Homeless Shelter. This two-phased lease revenue bond financing plan will allow the County to time the sale of bonds to occur just prior to public bidding for two tranches of projects, which will provide the County with accurate financial information to be used in developing project cost estimates, administering the bidding processes, and managing the projects.
To retain the option of including project costs that may be incurred by the County prior to the issuance of debt, Section 1.150-2 of the Treasury Regulations requires the County to declare its reasonable offic...
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