JUNE 22, 2017 REGULAR SESSION. Page Nos. AGENDA 2

Transcription

1 JUNE 22, 2017 REGULAR SESSION Page Nos. AGENDA 2 IV.E.3.e ADOPT RESOLUTION OF THE GOVERNING BOARD OF CHAFFEY 47 COMMUNITY COLLEGE DISTRICT AUTHORIZING THE EXECUTION AND DELIVERY OF LEGAL DOCUMENTS IN CONNECTION WITH A LEASE-PURCHASE REFINANCING IV.E.3.f ADOPT RESOLUTION OF THE GOVERNING BOARD OF CHAFFEY 53 COMMUNITY COLLEGE DISTRICT AUTHORIZING THE SALE OF NOT-TO-EXCEED $18,300,000 OF THE DISTRICT S 2017 CLEAN RENEWABLE ENERGY BONDS AND THE EXECUTION OF LEGAL DOCUMENTS

2 AGENDA MEETINGS OF THE GOVERNING BOARD CHAFFEY COMMUNITY COLLEGE DISTRICT Thursday, June 22, 2017 Board Room, Marie Kane Center for Student Services/Administration I. REGULAR SESSION A. CALL TO ORDER (2:00 p.m.) II. CLOSED SESSION A. PUBLIC COMMENTS ON CLOSED SESSION AGENDA B. RECESS TO CLOSED SESSION III. STUDY SESSION A. CONVENE IN OPEN SESSION B. AGENDA Tentative Budget IV. REGULAR SESSION A. RECONVENE IN REGULAR SESSION 1. Pledge of Allegiance B. PUBLIC COMMENTS C. COMMUNITY LINKAGES 1. Governing Board 2. Legislative Update 3. Presentations 4. Foundation D. REPORTS 1. Closed Session Actions 2. Monitoring a. Child Development Center: Program Self-Evaluation and Annual Report E. CONSENT AGENDA 1. Governance Process a. Approval of Minutes, May 22, 2017 b. Approval of Minutes, May 25, Academic Affairs a. Curriculum 3. Business/Fiscal Affairs a California State Preschool Program (CSPP-7418) Contract b General Child Care and Development Programs (CCTR-7194) Contract (continued on page 2)

3 Agenda - Meetings of the Governing Board Chaffey Community College District Thursday, June 22, 2017 Page 2 E. CONSENT AGENDA (CONTINUED) 3. Business/Fiscal Affairs (Continued) c Tentative Budget d. Adopt Resolution of the Governing Board of Chaffey Community College District Approving a Debt Issuance and Management Guideline in Accordance with S.B e. Adopt Resolution of the Governing Board of Chaffey Community College District Authorizing the Execution and Delivery of Legal Documents in Connection with a Lease-Purchase Refinancing f. Adopt Resolution of the Governing Board of Chaffey Community College District Authorizing the Sale of Not-to-Exceed $18,300,000 of the District s 2017 Clean Renewable Energy Bonds and the Execution of Legal Documents g. Approval to designate certain products, brands, and services as provided under public contract code, section 3400 h. Approve and Authorize Architectural Design Services Contract: Chino and Fontana Campus Mixed Use Buildings i. California Public Entity Pension Stabilization Trust (PST) Participation j. Center of Excellence for Labor Market Research (COE) Grant, California Community Colleges Chancellor s Office for RFA Desert Counties k. Deputy Sector Navigator, Advanced Manufacturing Grant l. Disposal of District Property: Electronic Equipment and Miscellaneous Materials m. Five-Year Construction Plan n. Memorandum of Understanding WIOA Phase I AJCC System o. Memorandum of Understanding WIOA Phase II AJCC System p. Renewing Communities Project Grant Amendment 1 q. Sector Navigator, Energy and Utilities, Grant Award r. Sole Source Purchase of Equipment: Apple Products 4. Human Resources a. Interjurisdictional Exchange Agreement b. Management Personnel Plan/Employment Contracts c. Memorandum of Understanding Chaffey College Faculty Association F. ACTION AGENDA 1. Business/Fiscal Affairs a. Contract, Purchase Order, and Warrant Lists b. Adopt Resolution of the Governing Board of Chaffey Community College District Authorizing the Execution and Delivery of Legal Documents in Connection with a Lease-Purchase Refinancing c. Adopt Resolution of the Governing Board of Chaffey Community College District Authorizing the Sale of Not-to-Exceed $18,300,000 of the District s 2017 Clean Renewable Energy Bonds and the Execution of Legal Documents G. CEO/STAFF REPORTS 1. Superintendent/President 2. Faculty Senate 3. Classified Senate 4. California School Employees Association (CSEA) 5. Chaffey College Faculty Association (CCFA) 6. Child Development Center Faculty Association (CDCFA) H. BOARD COMMENTS, REQUESTS, AND FUTURE AGENDA ITEMS

4 Agenda - Meetings of the Governing Board Chaffey Community College District Thursday, June 22, 2017 Page 2 V. ADJOURNMENT The next regular meeting of the Governing Board will be Thursday, July 27, Complete agenda may be viewed at board

5 TOPIC AGENDA I TEM Chaffey Community College District GOVERNI NG BOARD June 22, 2017 Board M eeting Date ADOPT RESOLUTION OF THE GOVERNING BOARD OF CHAFFEY COMMUNITY COLLEGE DISTRICT AUTHORIZING THE EXECUTION AND DELIVERY OF LEGAL DOCUMENTS IN CONNECTION WITH A LEASE-PURCHASE REFINANCING Communication No. IV.F.1.b IV.E.3.e SUPPORTS BOARD POLICY Supports and complies with Policies: 6100 Delegation of Authority, 6300 Fiscal Management. PROPOSAL To adopt by vote of the Governing Board members present, attached Resolution 62217A, authorizing the execution and delivery of legal documents in connection with a lease-purchase refinancing. BACKGROUND The Chaffey Community College District (the District ) has previously entered into lease financings to finance capital improvements with the California Community College Financing Authority (the Authority ), pursuant to which the Authority issued lease revenue bonds payable from lease payments made by the District. Specifically, the Authority has previously sold on behalf of the District (i) its Lease Revenue Bonds, Series 2006A in the aggregate initial principal amount of $7,210,000 (the Series 2006A Bonds ), of which of which $2,620,000 was initially allocable to the District, and (ii) its Lease Revenue Bonds, Series 2008A in the aggregate initial principal amount of $30,635, (the Series 2008A Bonds, and, together with the Series 2006A Bonds, the Prior Authority Bonds ), of which $10,095, was initially allocable to the District. The District now desires to refinance all or a portion of the Prior Authority Bonds and produce debt service savings for the District by entering into (i) a Site Lease, by and between the District, as lessor, and the Authority, as lessee (the Site Lease ); (ii) a Lease/Purchase Agreement, by and between the District, as lessee, and the Authority, as lessor (the Lease/Purchase Agreement ), which will in turn be assigned to a purchaser (the Purchaser ), pursuant to an Assignment Agreement, by and between the Authority and the Purchaser (the Assignment Agreement ) and a Direct Purchase Agreement, by and between the Authority, the Purchaser and the District (the Direct Purchase Agreement ); and (iii) an Escrow Agreement, by and between the District and U.S. Bank National Association, as escrow agent (the Escrow Agreement and, together with the Site Lease, Lease/Purchase Agreement, Direct Purchase Agreement and Assignment Agreement, the Financing Agreements ). Pursuant to the Resolution, the District would cause the sale, execution and delivery of the Lease/Purchase Agreement in an aggregate principal amount not-to-exceed $15,000,000. The cost of delivering the Lease is currently estimated not-to-exceed 2% of the principal amount of the lease. The anticipated savings from refinancing the bonds is approximately $4,000,000 over the life of lease. BUDGET IMPLICATIONS Funding Source N/A Status of Funds N/A Future Implications N/A

6 ADOPT RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF LEGAL DOCUMENTS IN CONNECTION WITH A LEASE-PURCHASE REFINANCING June 22, 2017 Page 2 RECOMMENDATION To adopt by vote of the Governing Board members present, attached Resolution 62217A, authorizing the execution and delivery of legal documents in connection with a lease-purchase refinancing. Attachment: Resolution 62217A Prepared by: Kim Erickson, Executive Director, Business Services Reviewed by: Lisa Bailey, Associate Superintendent, Business Services and Economic Development Recommended by: Henry D. Shannon, Superintendent/President

7 TOPIC AGENDA I TEM Chaffey Community College District GOVERNI NG BOARD June 22, 2017 Board M eeting Date ADOPT RESOLUTION OF THE GOVERNING BOARD OF CHAFFEY COMMUNITY COLLEGE DISTRICT AUTHORIZING THE SALE OF NOT-TO-EXCEED $18,300,000 OF THE DISTRICT S 2017 CLEAN RENEWABLE ENERGY BONDS AND THE EXECUTION OF LEGAL DOCUMENTS Communication No. IV.F.1.c IV.E.3.f SUPPORTS BOARD POLICY Supports and complies with Policies: 1400 Core Values Environmental Responsibility, 6100 Delegation of Authority, 6300 Fiscal Management. PROPOSAL To adopt by vote of the Governing Board members present, attached Resolution 62217B, authorizing the District to enter into lease-purchase financing in an amount not-to-exceed $18,300,000 to pay for capital costs associated with the Solar Project of the installation of solar photovoltaic carports, approving the forms of certain necessary legal documents, delegating authority to the superintendent/president or associate superintendent, business services and economic development, to take the steps necessary to complete the financing, and appointing Stradling Yocca Carlson & Rauth as bond counsel and RBC Capital Markets as bank solicitor in connection with the financing. BACKGROUND In February 2017, the District submitted an application to the Internal Revenue Service (IRS) for an allocation of the Clean Renewable Energy Bonds (CREBS) of up to $18,300,000 in order to subsidize a portion of the finance costs for the solar project. In March 2017, the District received an allocation and authority from the IRS to issue new CREBS up to $18,300,000. Once the financing is issued, the District will receive an allocation of 4.5% from the IRS to offset the interest rate. The District purposes to finance capital costs associated with the Solar Project through a lease purchase agreement administered by the California Community College Financing Authority with the sale of $18,300,000 of Clean Renewable Energy Bonds (CREBS). With the current interest rates, the maximum interest rate for the CREBS will be no more than 6% before the federal subsidy. However, with the IRS CREBS allocation and subsidy of 4.5% the effective rate of the financing will be no more than 1.5%. As reported on May 25, 2017, the solar project is expected to the save the District approximately $33,000,000 under current TOU rates and these savings will be used to pay the debt service for this financing. BUDGET IMPLICATIONS Funding Source Energy savings (unrestricted general fund) and/or capital projects fund. Status of Funds Funds will be included in the 2017/2018 unrestricted general fund and/or capital projects budgets. Future Implications Debt service will be paid from future energy savings.

8 ADOPT RESOLUTION AUTHORIZING THE SALE OF THE NOT-TO-EXCEED $18,300,000 OF THE DISTRICT S CLEAN RENEWABLE ENERGY BONDS AND THE EXECUTION OF LEGAL DOCUMENTS June 22, 2017 Page 2 RECOMMENDATION To adopt by vote of the Governing Board members present, attached Resolution 62217B, authorizing the District to enter into lease-purchase financing in an amount not-to-exceed $18,300,000 to pay for capital costs associated with the Solar Project of the installation of solar photovoltaic carports, approving the forms of certain necessary legal documents, delegating authority to the superintendent/president or associate superintendent, business services and economic development, to take the steps necessary to complete the financing, and appointing Stradling Yocca Carlson & Rauth as bond counsel and RBC Capital Markets as bank solicitor in connection with the financing. Attachment: Resolution 62217B Prepared by: Kim Erickson, Executive Director, Business Services Reviewed by: Lisa Bailey, Associate Superintendent, Business Services and Economic Development Recommended by: Henry D. Shannon, Superintendent/President