The ordinance allows the City of San Francisco to issue Certificates of Participation to prepay rental payments owed under a lease agreement with U.S. Bank Trust Company. It also approves various related agreements and grants authority to city officials to manage the process.
Ordinance authorizing the execution and delivery of Certificates of Participation, in one or more series from time to time ("Certificates"), to prepay rental payments due to U.S. Bank Trust Company, National Association, as successor project trustee, due under a Project Lease, dated as of July 1, 2017, by and between the Project Trustee and the City and County of San Francisco (“City”); approving the form of a Supplement to Trust Agreement between the City and U.S. Bank Trust Company, National Association (as successor-in-interest to U.S. Bank National Association), as project trustee ("Master Lease Project Trustee") (including certain indemnities contained therein); approving respective forms of a Supplement to Property Lease and a Supplement to Project Lease, each between the City and the Master Lease Project Trustee for the lease to the Master Lease Project Trustee and lease back to the City of all or a portion of certain real property and improvements owned by the City and located at 747 Howard Street within the City, or other property as determined by the Director of Public Finance; approving the form of Escrow Agreement (including certain indemnities contained therein), between the City and U.S. Bank Trust Company, National Association, as escrow agent; approving the form of an Official Notice of Sale and a Notice of Intention to Sell the Certificates of Participation; approving the form of an Official Statement in preliminary and final form; approving the form of a purchase contract between the City and one or more initial purchasers of the Certificates; approving the form of a Continuing Disclosure Certificate, as defined herein; granting general authority to City officials to take necessary actions in connection with the authorization, sale, execution and delivery of the Certificates of Participation; approving modifications to documents, including the release of property; and ratifying previous actions taken in connection therewith, as defined herein.
How it got here
The legislation originated from the need to refinance existing Certificates of Participation related to the Moscone Convention Center Expansion Project.
The Office of Public Finance submitted a memorandum to the Board of Supervisors recommending the adoption of an ordinance to authorize the execution and delivery of refunding Certificates of Participation to refinance the 2017B COPs.
The Mayor's office, through Adam Thongsavat, communicated the need for the ordinance to prepay rental payments due under the Project Lease with U.S. Bank Trust Company.
The Controller's Office outlined the financial plan for the refunding COPs, detailing the sources and uses of funds, and ensuring compliance with the City's debt policy.
The Budget and Finance Committee reviewed and recommended the ordinance for approval, discussing the financial implications and the structure of the refunding COPs.
The Board of Supervisors conducted the first reading of the ordinance authorizing the refunding Certificates of Participation.
The Board of Supervisors passed the ordinance on its second reading, finalizing the authorization for the refunding COPs.
The Mayor approved the ordinance, allowing the City to proceed with the issuance of the refunding Certificates of Participation.
Reconstructed from attached documents & the official record