TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Set Public Hearing for Finding of Significant Public Benefit for BRT Line of Credit
ACTION ITEM
RECOMMENDED ACTION(S):
Title
Consider setting a public hearing at 5:00 p.m. on July 10, 2019, regarding the finding of significant public benefit in the use of line of credit proceeds to finance construction of the East Bay Bus Rapid Transit (BRT) project.
Body
BUDGETARY/FISCAL IMPACT:
Setting the public hearing does not have a fiscal impact on the District, other than the cost to publish the notice. The fiscal impact of the enabled financing for the BRT project was initially described in Staff Report 17-132a and will be further detailed in a subsequent staff report.
BACKGROUND/RATIONALE:
With approval of Staff Report 17-132a, the Board authorized staff to pursue a plan for a short-term financing strategy to complete the BRT project. Staff has continued to work with PFM Financial Advisors LLC to refine the strategy first described in that staff report. The District issued a request for proposals on February 21, 2019, for a short-term line of credit (LOC), and has selected a firm based on the responses received. Part of the requirements for the LOC is that it stays open over the three years required to complete the BRT project and then pursue longer-term financing to pay off the unfunded portion of the project cost. Due to limitations in the District's enabling legislation, the LOC must be contracted through the California Statewide Communities Development Authority (CSCDA), a joint-powers agency that enables financing of public-benefit projects throughout California. CSCDA is functioning as a "conduit borrower" for the District.
To enable the LOC the District must join CSCDA and must also, per California Government Code Section 6586.5a(2) of the Joint Powers Act, hold a public hearing to establish that it finds significant public benefit in approving the financing and imple...
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