55B - RESO - WARNER ASSESSMENT DISTRICT

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Resolution to Issue Bonds related to the Warner Industrial Community Assessment District June 21, 2016 Page 5 Expenditures PROJECT PHASE COST OF ISSUANCE Cost Item $50,000 Disclosure Counsel PRELIMINARY — Assessment District Financial Advisor $40,000 Engineering $50,000 $317,191 CONSTRUCTION Official Statement Printing $5,000 Construction Contract $3,946,915 Costs of Issuance Contingencies Contract Contingency $600,000 $30,000 Construction Administration & Inspection $442,809 $4,989,724 $4,989,724 ASSESSMENT DISTRICT ADMINISTRATION Bond Cost of Issuance $859,916 TOTAL DISTRICT COSTS $6,166,831 On August 5, 2015, the City entered into an agreement with Psomas to provide engineering services related to the preparation of the WIC AD engineering report. Staff is recommending authorization to issue a Notice to Proceed for assessment district administrative services in an amount not to exceed $22,250 (Exhibit 7). The scope of work includes annual assessment administration and delinquency management. The recommended action for the City to prepay the assessment on behalf of the SAUSD is to relieve any concerns that the bond underwriters may have related to debt that goes unpaid. The City prepayment still allows the City to attempt collection from the SAUSD. The estimated cost associated with the issuance and administration of the WIC AD bonds is $859,916. The following table details the components of this cost: COST OF ISSUANCE I FINANCING COSTS COST OF ISSUANCE Bond Counsel $50,000 Disclosure Counsel $25,000 Financial Advisor $40,000 Assessment En Ineer $50,000 Bond Re Istration, Pa in /TransferAgent $5,000 Official Statement Printing $5,000 Printing, Publication, Postage & Miscellaneous Costs $15,000 Costs of Issuance Contingencies $42,010 District Administration $30,000 Subtotal — Cost of Issuance 1 $262,010 55B -5