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PLACENTIA
Rich Heritage, Bright Future
Placentia Public Safety Facility
Project Funding Review
September 6, 2022
Project Timeline
• April 6, 2021: City Council selects preferred project alternative and directs staff to complete engineering design services up to the 35% complete level
• July 20, 2021: City Council awards a professional services agreement to PBK Architects to design the project
• March 1, 2022: City Council reviews 35% engineering design, selects final project package, and directs staff to complete design
• September 6, 2022: City Council presented with project funding package and schedule for consideration
I City Council Approved
Project
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City Council Approved Project
Staff Offices
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Emergency
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25 Yard Shooting Range
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4,340 SF CMU First Floor
6,620 SF CMU Second Floor
5,265 SF Butler Building
2,560 SF CMU Gun Range
18,805 SF Total
Construction Cost Estimate:
$11,417,165
Future Market Rate Lease Costs
Fiscal Year
Annual Lease Payments
2023
2024
2025
2026
2027
$486,552
$506,014
$526,255
$547,305
$569,197
2028 $591,965
2029
$615,643
2030 $640,269
2031
2032
2033-2050
Total
$665,880
$692,515
$18,470,232
$24,311,827
Lease costs based on current market rate value of $1.90/SF for the City's current leased facility and 4% annual escalator.
Proposed Project Financing Structure
Option 1
Source of Funds
Unrestricted Fund Balance Reserves
Delay City HaII/PD HVAC Project to FY 23-24
(CIP Fund)
$3,000,000
$2,000,000
Property Sales
$550,000
Grand Total Down Payment
$5,550,000
Grand Total Bond Amount
$5,900,000
Option 2
Source of Funds
Unrestricted Fund Balance Reserves
$3,000,000
Property Sales
$550,000
Grand Total Down Payment
$3,550,000
Grand Total Bond Amount
$7,850,000
Proposed Project Financing
Structure, Cont.
Option 3
Source of Funds
Bond for Full Project Amount
$11,400,000
PLACENTIA
Financing Assumptions
• Tax exempt Lease Revenue Bonds (public use facility)
• LRB tax exempt rates est. —4.2%* for a projected 30 -year amortization
• City assets leased to Placentia Public Financing Authority; PFA leases assets to City
• PFA issues bonds backed by City lease payments
• Upon completion of construction and occupancy, City assets released and replaced by the new Public Safety Facility. *Estimates only; subject to final bond structure and market rates at time of bond sale.
Financing Cost Summary
Option
Construction Fund
Estimated
Costs of
Issuance
Estimated
Total Bond Issue
Proceeds
Estimated
Average
Annual Debt
Servi
Total
Principal and
Interest (30
year
1 $5,900,000
$325,000
$6,223,000
$360,000 $10,945,750
2 $7,850,000 $365,000
$8,214,000 $475,000 $14,440,750
3 $11,400,000 $435,000 $11,834,000 $685,000 $20,807,250 Staff recommends:
• Allocating 50% of Public Safety Development Impact Fees received in a fiscal year towards the annual debt service payment.
• Allocating 50% of any negotiated, developer fees received in a fiscal year towards the annual debt service payment.
Impacts to Reserve Levels
Option 1- $3M
FY22/23 Reserve
Adopted Budget Contribution
Reserve
goal -
25%
34%
Option 2- $2M
Reserve
Contribution
Option 3- No
Reserve
Contribution
40%
Grant Funding Received for
Project
quipment Purchase
Spacesaver Controloc Evidence Locker
System
Pass-Thru Refrigerated Evidence Locker
Indoor Walk-in Cooler
Evidence Processing Table
Total
Amount
$86,000
$24,000
$14,000
$10,000
$134,000
All items purchased with Prop 69 Funding.
PLACENTIA
Construction and Transition
Schedule
0 Construction Documents
May 18, 2022 Oct 5, 2022 20.0 weeks
F Prepare Construction Document Drawings
10 Complete Project S _ _ _ .
11 Fre D _ .. /City Review csf 50916 CDs
12 Final Costs Estimate Update
May 11, 2022
Jul d, 2022
Jul 13, 2022
Aug 24.. 2022
Aug 31, 2022
Aug 31, 2022
Jul 27, 2022
Aug 31, 2022
1 S_0 weeks Construation Document Drawings
S.0 weeks Project McinuelfS,. - ..
2.0 weeks E.0 Construction C —
1.0 weeks Construction Documents Cost Estimate
13 Buidirrg Department/Engineering Submittal & Review I Aug 31.. 2022 Oct S. 2022 5.0 weeks 11004ti Conshuction Document Drawings 11 Bidding and Negotiations
-Oct 5, 2022
Nov 2, 2022 4,0 weeks
15 Advertise to Bid
16 Repond to Bid RP's/Prepare Addenda
17 Bid Opening
1$ Review Bids
19 Council Award of Bid
Oct 3, 2022
Oct 5, 2022
Nov 2, 2022
Nov 2, 2022
Nov 15, 2022
Oct 3, 2022 0.0
Oct 26..099 3.0 weeks
Nov 2, 2022 0.0
Nov 4, 2022 0.3
Nov 15, 2022 0.0
20 Construction
Nov 16, 2022
Mar 10, 2024 68.6 weeks
21 Job Site Me-etings
22 Subrnittals and Shop Drawings
23 Punch List
24 Final C. _ l 'Move -In
Nov 17, 2022
Nov 21, 2022
Jan 25, 2024
Feb 23, 2024
Jon 25, 2024
Jan 30, 2023
Feb 22, 2024
filar d, 2024
62.0 10.0
4.0 2.0
weeks
weeks
'.weeks
weeks
Meeting Minutes
Reviewed Submittal & Shop Drawings
Punch List
25 Project Complete
Mar 10, 2024
Recommended Actions
1. Receive and file the presentation
2. Select a preferred Financing Structure
Staff recommends Option 1
3. Direct Staff to assemble a Bond Financing Team to
structure Lease Revenue Bonds to finance a portion
of the project cost
4. Direct Staff to return to the City Council with bond documents to authorize the bond sale
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13 PLACENTIA
All
Next Steps & Timeline
September 6, 2022: City Council review and consideration of financing package and policy direction to staff
September 2022: City Administrator retains financial advisor, bond and disclosure counsel, and bond underwriter
September 20, 2022: City Council considers purchasing contracts for Butler Building and shooting range systems
October 4, 2022: City Council considers and approves bond documents and resolutions and directs staff to proceed with bond sale October 5, 2022: Staff solicits bids for construction of facility November 10, 2022: Bonds are sold
November 15, 2022: City Council considers and awards construction contract
December 2022 — December 2023: Construction period
January 2024 — March 2024: Move-in/occupy
PLACENTIA
All
Questions?
PLACENTIA
Rich Heritage, Bright Future