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File #: 2017-0352   
Type: Resolution Status: Passed
File created: 5/17/2017 In control: Finance, Budget and Audit Committee
On agenda: 9/20/2017 Final action: 9/28/2017
Title: ADOPT a resolution, Attachment A, that: A. AUTHORIZES the competitive sale of up to $550 million of Prop A "New Money Bonds" and up to $135 million of "Prop A Refunding Bonds" (collectively the "Prop A Bonds") in one or more series and one or more transactions through June 30, 2018; B. APPROVES the forms of Notice of Intention to Sell Bonds, Notice Inviting Bids, Supplemental Trust Agreement, Continuing Disclosure Agreement, Escrow Agreement and Preliminary Official Statement on file with the Board Secretary, all subject to modification as set forth in the resolution; and C. AUTHORIZES taking all action necessary to achieve the foregoing, including, without limitation, the further development and execution of bond documentation associated with the issuance of the Prop A Bonds. (REQUIRES SEPARATE, SIMPLE MAJORITY BOARD VOTE)
Sponsors: Finance, Budget and Audit Committee
Indexes: Bids, Capital Project, Capital Project Funds, Debt, Policy, Proposition A, Resolution
Attachments: 1. Attachment A - Authorizing Resolution, 2. LACMTA - Prop. A - 2017 - Notice of Intention to Sell, 3. LACMTA - Prop. A - 2017 - Thirty-Eighth Supplemental Trust Agreement, 4. LACMTA - Prop. A - 2017 - Continuing Disclosure Certificate, 5. LACMTA - Prop. A - 2017 - Escrow Agreement, 6. LACMTA - Prop. A - 2017 - POS, 7. LACMTA - Prop. A - 2017 - Notice Inviting Bids
Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
SEPTEMBER 20, 2017

Subject
SUBJECT: PROPOSITION A BONDS
Action
ACTION: AUTHORIZE COMPETITIVE SALE OF BONDS

Heading
RECOMMENDATION

Title
ADOPT a resolution, Attachment A, that:

A. AUTHORIZES the competitive sale of up to $550 million of Prop A "New Money Bonds" and up to $135 million of "Prop A Refunding Bonds" (collectively the "Prop A Bonds") in one or more series and one or more transactions through June 30, 2018;

B. APPROVES the forms of Notice of Intention to Sell Bonds, Notice Inviting Bids, Supplemental Trust Agreement, Continuing Disclosure Agreement, Escrow Agreement and Preliminary Official Statement on file with the Board Secretary, all subject to modification as set forth in the resolution; and

C. AUTHORIZES taking all action necessary to achieve the foregoing, including, without limitation, the further development and execution of bond documentation associated with the issuance of the Prop A Bonds.

(REQUIRES SEPARATE, SIMPLE MAJORITY BOARD VOTE)

Issue
ISSUE

The Prop A New Money Bonds will be issued as fixed rate bonds in a par amount not to exceed $550 million. The Prop A New Money Bonds will fund Prop A eligible capital projects and expenditures and permanently finance $123.7 million of outstanding Prop A commercial paper, the proceeds of which financed Prop A eligible capital projects and capital expenditures. We want to issue the fixed rate long-term bonds before interest rates move higher. All or a portion of the Prop A New Money Bonds are expected to be certified as Green Bonds, meaning the financed projects meet the environmental requirements under the Climate Bonds Initiative.

Current interest rate levels provide an opportunity to lock in approximately $4.5 million of net present value savings by issuing the Prop A Refunding Bonds to refund certain of the outstanding Prop A Senior Lien Bonds (primarily the Prop A 2011-B Bonds) in compliance with the Board-adopted Debt Pol...

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