Tentative Agenda for Mesa City Council Meeting Mon 16 April 2018

^^ HEADS UP^^ You have an entire week to do your diligence and ask questions: Get active or don't complain.

PLEASE PAY ATTENTION TO : Items 5-l, 5-m and 5-n
> Here's 5-l with ten links to look at and understand - ask your district councilmember to explain. Ask more questions: Budget accounting, analysis and projections can get tricky. 

Keep in mind that if the taxpayers and public here in Mesa are not informed and actively engaged in city government, it's more than likely that your elected and salaried officials and their 'Friends-with-benefits' will do what's in their special interests.
TAKE THE TIME to find out about the fiscal condition of the city's finances...and ask if we really need to take on more debt when there are still million$$$$$$$ unspent . . . _________________________________________________________________________

File #:

18-0273

Type:

Resolution

Status:

Agenda Ready

In control:

City Council

On agenda:

4/16/2018

Title:

Authorizing the issuance and sale of General Obligation bonds of the City of Mesa. (Citywide)

Strategic initiatives:

Financial Stability

Attachments:

1. Council Report, 2. Attachment A - 2018 General Obligation Bond Sale Project List, 3. Attachment B - Estimated General Obligation Debt Service, 4. Attachment C - Remaining Bond Authorization by Election Year, 5. Attachment D - Series 2018 Issuances - Authorization by Election Year.pdf, 6. Resolution, 7. Registrar Contract, 8. DRAFT Preliminary Official Statement, 9. Bond Purchase Agreement, 10. Continuing Disclosure Certificate

_____________________________________________________________________________
Here's just the Council Report: 627 KB - it's 4 pages long
City Council Report  
Date:  April 16, 2018
To:  City Council
Through: Michael Kennington, Chief Financial Officer and Candace Cannistraro, Budget Director 
From:  Ryan Wimmer, Deputy Budget Director    
Subject: Series 2018 General Obligation Bond Sale    
Purpose and Recommendation 
The purpose of this item is for the Mesa City Council to order the sale of voter authorized bonds in an amount sufficient to finance planned capital projects. 
It is recommended that the City Council order the sale of not to exceed $16,120,000 of General Obligation (G.O.) bonds through a negotiated process.
The City is scheduled to price the bonds on or around May 15, 2018.  
Background 
In Citywide elections, Mesa residents have authorized the City to utilize bonds to finance capital projects. 
The City typically issues new bonds once each year to fund projected bond spending on capital projects. 
The City plans to use the proceeds from the sales of Series 2018 bonds to pay for the purchase, design, and/or construction of portions of or all of certain capital projects during calendar year 2018, although some of the bond proceeds may be spent sooner or later (depending on the timing of project spending).
   
The G.O. bonds in the Series 2018 sale represent portions of bond authorizations approved by the City electorate in bond elections held in 2012 and 2013.
   
Table 1 below shows those City General Obligation bond authorizations that are currently in use (some older bond authorizations remain, but are not being utilized).    
The table includes the purpose and amounts of the proposed Series 2018 bonds as well as the authorized issuance amounts that would be remaining after the sale. 
Table 1: General Obligation Bonds – Authorizations Currently in Use Purpose                       Authorization Year(s) Available Authorization Proposed Sale Series 2018 Remaining Authorization Parks 2012 $       16,500,000 $       11,585,000 $           4,915,000 Streets 2013 $       34,485,000 $         4,535,000 $         29,950,000 G.O. Bond Total            $       50,985,000 $       16,120,000 $         34,865,000 
2 
A full list of the City’s remaining bond authorization (both currently-used authorization and remaining authorization from prior years) can be found in Attachment C - Remaining Bond Authorization by Election Year.    
Discussion 
Attachment A – 2018 General Obligation Bond Sale Project List is a listing of projects that are planned to be funded with the proceeds of the Series 2018 bond issue. 
The amount included in the sale is anticipated to be sufficient to fund anticipated project spending through December 31, 2018. 
Insert: 
Total Series 2018 Parks and Recreation Bonds 11,585,000 $      
Post-2008 Bond Authorization Prior to Series 2018 Sale 16,500,000 $      
Remaining Post-2008 Bond Authorization After Series 2018 Sale 4,915,000    
The City issues voter-authorized general obligation bonds annually in amounts sufficient to fund project spending in the calendar year of the issuance. 
Since bond proceeds are typically received in May or June, new proceeds are intended to reimburse the City’s project spending up to that point in the calendar year
(IRS rules1 allow for use of bond proceeds to reimburse project spending for at least 18 months after the spending occurs) and to fund project spending through the remainder of the calendar year.  This approach minimizes interest cost while maintaining flexibility in the timing of future bond issues.    
NOTE: The 2018 General Obligation bond debt structure includes a relatively large amount of principal in Year 1 (FY18/19) to utilize unspent revenue from prior years as well as capacity within the existing property tax levy. 
For planning purposes, the City uses conservative assumptions for interest rates on debt, property tax collection rates, fee revenues, etc. 
In addition, after the proposed 2018 G.O. bond issuance, there would still be nearly $35 million in current bond authorization remaining to be issued in future years. 
These conservative assumptions and remaining bond authorization have resulted in available revenue and property tax levy capacity to repay a significant amount of principal in Year 1.               
                                            1 Code of Federal Regulations 26-1.150.2
3    
Existing General Obligation debt combined with the proposed Series 2018 issuance is shown in Chart 1 below.
> Chart 1: General Obligation Debt by Fiscal Year – Existing and Series 2018   
Total General Obligation bond principal and interest payments, including the proposed Series 2018 issuance, are shown in Chart 2 below.  

> Chart 2: General Obligation Debt by Fiscal Year – Principal and Interest 
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45 Millions
Existing Series 2018
$0 $5 $10 $15 $20 $25 $30 $35 $40 $45 Millions
Principal Interest
4   
Alternatives 
The Council may choose to not proceed with the sale of the proposed bond issues at this time.  The City could cancel new bond-funded projects that are still in the planning stage and/or utilize available reserves to pay for a portion of the contracts on projects that are already in progress. 
These alternatives are not recommended as they would quickly exhaust City reserves and prevent completion of capital projects that are in various stages of planning and construction.
   
Fiscal Impact 
Attachment B – Estimated General Obligation Debt Service shows estimated debt service for the proposed Series 2018 bond issue and the impact on total debt service amounts.  Debt service for the new issuance is structured such that, when combined with the City’s current outstanding debt, a stable overall debt structure is achieved.   
Attachment C – Remaining Bond Authorization by Election Year provides remaining bond authorization amounts (prior to the Series 2018 bond issuance) by purpose and year of voter authorization. 
Attachment D – Series 2018 Issuances – Authorization by Election Year provides a summary of Series 2018 bond issuance amounts by purpose and authorization year. 
The debt service from the Series 2018 general obligation bond issue is included in the City’s expenditure forecast. 
The new debt service is fully funded within the City’s current secondary property tax levy. 
No increase in the levy is necessary.
    
Coordination 
The Office of Management and Budget, the City Manager’s Office, the Engineering Department, and other City departments that manage capital projects coordinated regarding the amount of the proposed bond sale and the projects on which the bonds are planned to be spent.    


_____________________________________________________________________________

Meeting Name:

City Council

Agenda status:

Tentative

Meeting date/time:

4/16/2018 5:45 PM

Minutes status:

Draft

Meeting location:

Council Chambers - Upper Level

Published agenda:

Agenda

Published minutes:

Not available

Meeting video:

Not available

Attachments:

• Meeting Items (36)

36 records Group Clear sorting Clear grouping Group by Type Group by Result Export Export to Excel Export to PDF Export to Word Show: Legislation only Legislation only All agenda items

File # Agenda # Type Title Action Result Action Details 18-0435 3-a Liquor License Application Luke-Greenway Post No. 1 - The American Legion This is a one-day event to be held on Friday, April 20, 2018 from 3:00 P.M. to 10:30 P.M., at Riverview Park, 2100 West Rio Salado Parkway. (District 1)     Not available 18-0436 3-b Liquor License Application JDRF International This is a one-day event to be held on Saturday, April 28, 2018 from 6:00 P.M. to 12:00 A.M., at Sloan Park, 2330 West Rio Salado Parkway. (District 1)     Not available 18-0437 3-c Liquor License Application Mavyn This is a one-day event to be held on Saturday, May 5, 2018 from 3:00 P.M. to 2:00 A.M. on Sunday, May 6, 2018, at Mind’s Eye Studio, 43 West 6th Avenue. (District 4)     Not available 18-0438 3-d Liquor License Application Sunnyside Breakfast Lounge A restaurant that serves breakfast and lunch is requesting a new Series 12 Restaurant License for K Bar M Restaurants LLC, 2823 North Power Road, Suite 101 - Richard Kyle Weltsch, agent. The existing license held by Garfio Enterprises LLC will revert to the State. (District 5)     Not available 18-0393 4-a Contract One-Year Renewal to the Term Contract for Tire Maintenance and Repair Services for the Fleet Services Department (Citywide) This contract provides tire maintenance and repair services for the City’s fleet of wheeled equipment. Work includes providing all labor, equipment, tools, service trucks and services required for inspection, scheduled maintenance and repairs of all wheeled equipment including monitoring and maintaining tire pressure; checking tire tread depth; rotating, inspecting and repairing tires; installing new tires; submitting reports; and providing emergency road calls. The Fleet Services Department and Purchasing recommend authorizing the renewal contract with Jack’s Tire & Oil Management Company, Inc., at $400,000, based on estimated usage.     Not available 18-0414 4-b Contract One-Year Renewal to the Term Contract for Commercial Printing for the Business Services Department (Citywide) Business Services - Print Services provides essential and cost-effective printing services to all City Departments to support their programs. Print Services will use this contract for the print projects that they do not have the proper equipment for, or it is not economically possible. The Business Services Department and Purchasing recommend authorizing the renewal contract with Di-Mor Business Forms, Inc., at $40,300, based on estimated usage.     Not available 18-0415 4-c Contract One-Year Renewal to the Term Contract for Original Equipment Manufacturer Heavy-Duty Equipment Repair Services for the Fleet Services Department (Citywide) This contract provides pre-qualified repair firms to provide non-exclusive equipment repair service for the City’s fleet of approximately 200 heavy-duty trucks on an as-needed-basis. The vendors furnish all labor, tools, materials, garage facility and insurance to perform body and related mechanical repair work for the City's fleet of heavy-duty vehicles as directed by the City. The Fleet Services Department and Purchasing recommend authorizing the renewal contract with Empire Southwest LLC (a Mesa business); Balar Holding Corp., dba Balar Equipment Corp.; and Short Equipment (formerly Wayne Industrial Holdings LLC, dba OEM Parts and Service); for $160,000, based on estimated usage.     Not available 18-0433 4-d Contract Dollar-Limit Increase to the Term Contract for Fire Protection Equipment Maintenance and Repair Services for Citywide Locations as requested by the Parks, Recreation and Community Facilities Department (Citywide) This increase is needed to provide additional repairs to fire suppression equipment to minimize fire code violations and for the installation of radio dialers at various City facilities to improve quarterly monitoring. The Parks, Recreation and Community Facilities Department and Purchasing recommend increasing the dollar-limit with Metro Fire Equipment, Inc., by $75,000, from $151,680 to $226,680 annually, based on estimated usage.     Not available 18-0416 4-e Contract One-Year Renewal to the Term Contract for Storm Drain Grates and Manhole Covers for the Transportation Department (Citywide) This contract provides storm drain grates and manhole covers to be used by the Transportation Department. These grates and covers are used to replace damaged or missing pieces throughout the City. The Transportation Department and Purchasing recommend authorizing the renewal contract with Grate Solutions Company, Inc.; and Neenah Foundry Company; cumulatively not to exceed $116,700, based on estimated usage.     Not available 18-0412 4-f Contract Northwest Water Reclamation Plant Miscellaneous Improvements, Construction Manager at Risk-Guaranteed Maximum Price (GMP) (District 1) The Northwest Water Reclamation Plant was constructed in 1990 and was expanded in 2000. As a result, some of the process equipment and associated piping, valves, and controls need to be replaced or upgraded, as they have reached the end of their useful life. In addition, one of the existing buildings is being re-purposed as a maintenance building, and new storage space is being provided. Staff recommends awarding this GMP project to Hunter Contracting in the amount of $2,888,594.67, and authorize a change order allowance in the amount of $288,859.47, for a total amount of $3,177,454.14. This project is funded by 2010 authorized Wastewater bonds.     Not available 18-0411 4-g Contract Fleet West Roof Repair (310 East 6th Street) (District 4) The project scope is to remove the mechanical units from the northeast portion of the roof and remove the current waterproofing and insulation, exposing the metal deck. Once the deck is exposed, City staff will inspect and determine the limits of the metal deck that will need to be replaced. The identified areas will be removed and replaced and the entire roof will be insulated and waterproofed. New mechanical units with drain lines will then be installed. Staff recommends awarding the contract for this project to the lowest, responsible bidder, Paul R. Peterson Construction, in the amount of $144,595.90, and authorize a change order allowance in the amount of $14,460, for a total amount of $159,055.90.     Not available 18-0434 4-h Contract Elliot Road Tech Corridor Project - Ellsworth Road to Signal Butte Road (District 6) The objective of the project is to transform Elliot Road into a “Technology Corridor” to serve as an economic development catalyst for the area. The project includes street widening, storm water harvesting areas, new street lights, landscaping, new traffic signal, underground traffic signal infrastructure for a future signal at 96th Street and other esthetic additions. Staff recommends awarding the contract for this project to the lowest, responsible bidder, Nesbitt Contracting Company, Inc., in the amount of $9,578,841.55, and authorize a change order allowance in the amount of $957,884.16, for a total amount $10,536,725.71. This project is funded by 2013 authorized Street Bonds and Transportation Funds.     Not available 18-0413 5-a Resolution Setting May 21, 2018 as the public hearing date to review the proposed FY 2018/19 annual assessments for the Mesa Town Center Improvement District No. 228. The proposed final assessments do not include any rate increases. (District 4)     Not available 18-0397 5-b Resolution Authorizing and supporting the submittal of a grant application by Boy Scouts of America, Grand Canyon Council, to the Fort McDowell Yavapai Nation in the amount of $20,000, and authorizing the City Manager to accept and administer subsequent awarded funds as a pass-through grant. (Citywide)     Not available 18-0398 5-c Resolution Authorizing and supporting the submittal of a grant application by Child Crisis Arizona to the Fort McDowell Yavapai Nation in the amount of $10,000, and authorizing the City Manager to accept and administer subsequent awarded funds as a pass-through grant. (Citywide)     Not available 18-0399 5-d Resolution Authorizing and supporting the submittal of a grant application by East Valley Adult Resources to the Fort McDowell Yavapai Nation in the amount of $15,000, and authorizing the City Manager to accept and administer subsequent awarded funds as a pass-through grant. (Citywide)     Not available 18-0400 5-e Resolution Authorizing and supporting the submittal of a grant application by Furnishing Dignity to the Fort McDowell Yavapai Nation in the amount of $14,826.24, and authorizing the City Manager to accept and administer subsequent awarded funds as a pass-through grant. (Citywide)     Not available 18-0401 5-f Resolution Authorizing and supporting the submittal of a grant application by Gene Lewis Boxing Club to the Fort McDowell Yavapai Nation in the amount of $7,500, and authorizing the City Manager to accept and administer subsequent awarded funds as a pass-through grant. (Citywide)     Not available 18-0402 5-g Resolution Authorizing and supporting the submittal of a grant application by Mesa Arts Center to the Fort McDowell Yavapai Nation in the amount of $15,000 for Summer Arts & Culture for Kids and Youth Classes, and authorizing the City Manager to accept and administer subsequent awarded funds. (Citywide)     Not available 18-0403 5-h Resolution Authorizing and supporting the submittal of a grant application by Project 25 World to the Fort McDowell Yavapai Nation in the amount of $15,000, and authorizing the City Manager to accept and administer subsequent awarded funds as a pass-through grant. (Citywide)     Not available 18-0421 5-i Resolution Approving and authorizing the City Manager to enter into a National Criminal History Improvement Program Grant Agreement with the Arizona Criminal Justice Commission to accept $281,516 in grant funds, with a required City match of $31,280. The funds will be used by the Police Department’s Records Division for the conversion of microfilm and reels into digital format. (Citywide)     Not available 18-0423 5-j Resolution Approving and authorizing the City Manager to enter into a Development Agreement for City Share Reimbursement with DMB Mesa Proving Grounds, LLC, for the reimbursement of $181,983.40 for regional traffic signal improvements that are being required by the City in conjunction with a proposed residential development known as Eastmark - Ray Road and Signal Butte Road, located at 10813 East Ray Road. (District 6)     Not available 18-0424 5-k Resolution Approving and authorizing the City Manager to enter into an Intergovernmental Agreement with the Town of Queen Creek concerning the relocation, construction, and placement of a City gas line in Combs, Rittenhouse, and Gary Roads. (Town of Queen Creek) The new gas line will allow Mesa to serve new developments that are planned on the northwest, southwest and southeast corners of the newly-aligned intersections of Rittenhouse and Combs Roads by being located within the new roadway alignment. It will also add capacity and reliability to the existing infrastructure. The Agreement provides that the City will pay Queen Creek for the construction and administrative costs of the gas line replacement, estimated at $461,700. Funding is available from the 2014 Gas Bond Program.     Not available 18-0273 5-l Resolution Authorizing the issuance and sale of General Obligation bonds of the City of Mesa. (Citywide)     Not available 18-0274 5-m Resolution Authorizing the issuance and sale of utility systems revenue bonds of the City of Mesa. (Citywide)     Not available 18-0451 5-n Resolution Authorizing the defeasance and redemption of a portion of the City's outstanding Utility Systems Revenue Bonds, Series 2006 and 2008; and Utility Systems Revenue Refunding Bonds, Series 2014. (Citywide)     Not available 18-0241 6-a Ordinance Amending Sections 10-4-5 and 10-4-6 of the Mesa City Code to establish a speed limit of 35 mph on a proposed section of Cadence Parkway from Ellsworth Road to a point 1,200 feet east of Ellsworth Road and a speed limit of 30 mph from a point 1,200 feet east of Ellsworth Road to Williams Field Road, as recommended by the Transportation Advisory Board. (District 6)     Not available 18-0242 6-b Ordinance Amending Sections 10-4-3 and 10-4-5 of the Mesa City Code to modify the boundaries of the current 45mph speed limit on Crismon Road from the north City limits to Elliot Road, and to establish a speed limit of 35 mph on a new section of Crismon Road from Ray Road to Williams Field Road, as recommended by the Transportation Advisory Board. (District 6)     Not available 18-0407 6-c Ordinance ZON17-00324 (District 2) The 1800 block of South Recker Road (east side). Located north of Baseline Road on the east side of Recker Road (3.80± acres). Rezoning; and Site Plan Review. This request will allow the land to be divided for the development of detached single residence housing. Shane Urry, applicant; Lynn M. Urry, Scott W. Urry and Peggy A. Urry, owners. Staff Recommendation: Approval with conditions P&Z Board Recommendation: Approval with conditions (Vote: 5-0)     Not available 18-0408 6-d Ordinance ZON17-00580 (District 5) The 8700 through 8800 blocks of East Broadway Road (south side). Located on the south side of Broadway Road, west of the 202 Red Mountain Freeway (3.2± acres). Rezoning from RM-3-PAD to LC-BIZ; and Site Plan Review. This request will allow for the development of a self-storage facility. George Pasquel, Withey Morris PLC, applicant; Broadway and 202, LLC, owner. Staff Recommendation: Approval with conditions P&Z Board Recommendation: Approval with conditions (Vote: 5-0)     Not available 18-0409 6-e Ordinance ZON17-00585 (District 3) The 700 block of West Baseline Road (south side). Located on the south side of Baseline Road west of Country Club Drive (1.9± acres). Site Plan Modification. This request will allow for the development of a medical office in the NC zoning district. Andrew Greybar, LGE Design Group, applicant; Mesa GI Holdings, LLC, owner. Staff Recommendation: Approval with conditions P&Z Board Recommendation: Approval with conditions (Vote: 5-0)     Not available 18-0417 6-f Ordinance ZON17-00591 (District 1) The 800 block of North Gilbert Road (east side). Located on the east side of Gilbert Road south of Brown Road (1.7± acres). Rezoning from OC to LC; and Special Use Permit and Site Plan Review. This request will allow for the development of a building materials and services facility with accessory outdoor display. Boyd Thacker, Brock Craig & Thacker Architects, applicant; Highplains Land, LLC, owner. Staff Recommendation: Approval with conditions P&Z Board Recommendation: Approval with conditions (Vote: 5-0)     Not available 18-0418 6-g Ordinance ZON17-00593 (District 6) The 7500 block of East Hampton Avenue (north side). Located south of Southern Avenue and west of Sossaman Road (2.4± acres). Rezoning from LI-PAD to LC-PAD and Council Use Permit; and Site Plan Review. This request will allow for the development of a plasma center. Paul Gilbert, Beus Gilbert, PLLC, applicant; Hampton Property, LLC, owner. Staff Recommendation: Approval with conditions P&Z Board Recommendation: Approval with conditions (Vote: 5-0)     Not available 18-0405 6-h Ordinance Amending Section 11-31-34 of the Mesa Zoning Ordinance pertaining to the establishment and operation of Medical Marijuana Facilities. (Citywide) The amendments reflect minor updates including adding an exception to the separation requirements, allowing deliveries, and modifying security plan requirements. Staff Recommendation: Approval P&Z Board Recommendation: Approval (Vote: 6-0)     Not available 18-0419 7-a Subdivision Plat “Guadsworth Unit 1” (District 6) The 9000-9100 block of East Guadalupe Road (south side) and the 9000-9100 block of East Onza Avenue (north side). Located west of Ellsworth Road on the south side of Guadalupe Road. 3 LC-PAD commercial lots (6.89 ± acres). Western Devco, LLC, developer; Raymond S. Munoz lll, EPS Group Inc., surveyor.     Not available 18-0420 7-b Subdivision Plat “Guadsworth Unit 2” (District 6) The 2800 block of South Ellsworth Road (west side) and the 9100 block of East Onza Avenue (north side). Located south of Guadalupe Road on the west side of Ellsworth Road. 3 LC-PAD commercial lots (3.01 ± acres). Western Devco, LLC, developer; Raymond S. Munoz lll, EPS Group Inc., surveyor.     Not available

_____________________________________________________________________________