Metro - File #: 2016-0607

• File #: 2016-0607
• Type: Resolution
• Status: Passed
• File created: 8/5/2016
• In control: Board of Directors - Regular Board Meeting
• On agenda: 10/27/2016
• Final action: 10/27/2016
• Title: ADOPT a Resolution that: A. AUTHORIZES the negotiated bond sale and issuance of up to $600 million of bonds (Measure R Senior Sales Tax Revenue Bonds, 2016) in one or more series, to finance capital projects and to repay outstanding short-term revolving debt; B. APPROVES the forms of the supplemental trust agreement, continuing disclosure certificate, preliminary official statement and such other documents as required for the issuance of the bonds, and approves related documents on file with the Board Secretary as set forth in the resolution all as subject to modification as set forth in the Resolution; C. APPROVES the form of the bond purchase contract on file with the Board Secretary, that will be entered into with the underwriters as listed in Attachment B hereto; and D. AUTHORIZES taking all action necessary to achieve the foregoing, including, without limitation, the further development and execution of the bond purchase contract and bond documentation associated with the is...
• Sponsors: Finance, Budget and Audit Committee
• Indexes: Budgeting, Capital Project, Construction, Contracts, Debt, Locking, Measure R, Policy, Project, Purchasing, Request For Proposal, Resolution

Date	Action By	Action	Result
10/19/2016	Finance, Budget and Audit Committee

Meeting_Body
FINANCE, BUDGET & AUDIT COMMITTEE
OCTOBER 19, 2016

Subject/Action
SUBJECT: MEASURE R BONDS

ACTION: AUTHORIZE NEGOTIATED SALE OF BONDS AND APPOINT UNDERWRITERS

Heading
RECOMMENDATION

Title
ADOPT a Resolution that:

A. AUTHORIZES the negotiated bond sale and issuance of up to $600 million of bonds (Measure R Senior Sales Tax Revenue Bonds, 2016) in one or more series, to finance capital projects and to repay outstanding short-term revolving debt;

B. APPROVES the forms of the supplemental trust agreement, continuing disclosure certificate, preliminary official statement and such other documents as required for the issuance of the bonds, and approves related documents on file with the Board Secretary as set forth in the resolution all as subject to modification as set forth in the Resolution;

C. APPROVES the form of the bond purchase contract on file with the Board Secretary, that will be entered into with the underwriters as listed in Attachment B hereto; and

D. AUTHORIZES taking all action necessary to achieve the foregoing, including, without limitation, the further development and execution of the bond purchase contract and bond documentation associated with the issuance of the Measure R 2016 Bonds.

(REQUIRES SEPARATE, SIMPLE MAJORITY BOARD VOTE.)

Issue
ISSUE

Currently, low long-term interest rates provide the opportunity to issue bonds to finance capital project expenditures and to repay short-term debt that was used to pay capital project expenses with permanent fixed rate financing in order to keep Measure R projects moving forward.

Discussion
DISCUSSION

The Measure R Ordinance anticipated and authorized the use of debt to finance projects in the Measure R Expenditure Plan. Metro's Long Range Transportation Plan (LRTP) assumed the issuance of long-term debt to deliver projects faster than possible on a "pay as you go" basis. The proposed $600 million tax-exempt fixed rate bond issue is needed to bridge the gap between annua...