MEETING DATE: 3/10/2020
DEPARTMENT: COUNTY ADMINISTRATION OFFICE
DEPT HEAD/DIRECTOR: Ray Espinosa
AGENDA ITEM PREPARER: Stewart Patri
SBC DEPT FILE NUMBER: 810
SUBJECT:
COUNTY ADMINISTRATION OFFICE - R. ESPINOSA
Receive closing memo on the San Benito County 2020 Certificates of Participation for the Behavioral Health Department Building.
SBC FILE NUMBER: 810
AGENDA SECTION:
CONSENT AGENDA
BACKGROUND/SUMMARY:
The San Benito County Behavioral Health Center Project
The 2020 Certificates Of Participation were issued to finance a portion of the construction costs of the new Behavioral Health Center. The project consists of a 17,000 square-foot modular building. The building will accommodate the Behavioral Health Department’s current and future staff growth required to meet the current and future demands for services. It has been a goal of the Behavioral Health Department for many years to construct a larger facility to house the expansion of service programs to serve the growing needs of our County’s residents. The Behavioral Health Department acquired the site in 2017, adjacent to its current location on 1131 San Felipe Road. The start of modular building fabrication is set to begin in April of 2020; the delivery of modular buildings to the site will occur on August 15, 2020. Construction is anticipated to be complete by January 2021. The total estimated cost of the Behavioral Health Center project (based on conservative estimates) is $14,088,000.
Credit Rating
County staff made a presentation to Standard and Poor's, a credit rating agency, on December 5th, 2019 highlighting multiple aspects of the Behavioral Health Building project and the County's finances. On December 26th, 2019 Standard and Poor's assigned a "AA" rating with a "stable" outlook to the 2020 Certificates of Participation.
The 2020 COP Issuance Recap
The Certificates of Participation were issued through a competitive sale process. The Preliminary Official Statement was circulated to potential investors on January 8th, 2020 with the pricing date of January 15th, 2020. Robert W. Baird & Co., Inc. submitted the winning bid with a True Interest Cost of 2.499735%. (Additional information regarding the sale and structure of the Certificates of Participation can be found on the attached memorandum from KNN Public Finance, LLC.)
Project Update
Periodic updates will be presented to the board by Behavioral Health and the Resource Management Agency. The groundbreaking ceremony will be held on March 10, 2020 at 12:30pm.
BUDGETED: