Cov txheej txheem cuam tshuam rau kev tshaj tawm thiab muag 2026 Lease Revenue Bonds los pab nyiaj rau Pave More Now Projects thiab Police Department Administration Building Improvements: 1. ***RESOLUTION - Pom zoo rau kev tshaj tawm los ntawm Fresno Joint Powers Financing Authority ntawm lease revenue bonds nyob rau hauv ib txwm cov nyiaj tseem ceeb tsis heev tshaj $130 lab, tso cai rau kev ua tiav thiab muab ib qho thawj amendment rau master facilities lease, ib qho thawj amendment rau master facilities sublease, ib qho bond purchase agreement, ib qho official statement thiab ib qho continuing disclosure certificate; thiab tso cai rau kev ua tiav cov ntaub ntawv thiab kev ua tag nrho cov hauj lwm tsim nyog cuam tshuam rau kev pab nyiaj. (City action) (Requires Five Affirmative Votes) (Subject to Mayor's Veto) 2. RESOLUTION ntawm Fresno Joint Powers Financing Authority tso cai rau kev tshaj tawm thiab muag Lease Revenue Bonds (Pave More Now Projects thiab Police Department Administration Building Improvements), Series 2026, tso cai rau kev ua tiav thiab muab ib qho thawj supplemental trust agreement, ib qho thawj amendment master facilities lease, ib qho thawj amendment master facilities sublease, ib qho bond purchase agreement, thiab ib qho official statement, thiab tso cai rau kev ua tag nrho cov hauj lwm tsim nyog cuam tshuam rau kev tshaj tawm ntawm Series 2026 Bonds. (Joint Powers Financing Authority action) 3. ***RESOLUTION - Tso cai rau kev tso tawm ntawm facilities thiab amendment ntawm 2008 Master Facilities Lease thiab 2008 Master Facilities Sublease cuam tshuam rau Fresno Joint Powers Authority Lease Revenue Bonds (Master Lease Projects) thiab pom zoo rau kev ua tag nrho cov hauj lwm tsim nyog los yog xav tau rau hauv kev cuam tshuam nrog. (City action) (Requires Five Affirmative Votes) (Subject to Mayor's Veto) 4. RESOLUTION ntawm Fresno Joint Powers Financing Authority tso cai rau kev tso tawm ntawm facilities thiab amendment ntawm 2008 Master Facilities Lease thiab 2008 Master Facilities Sublease cuam tshuam rau Fresno Joint Powers Authority Lease Revenue Bonds (Master Lease Projects) thiab pom zoo rau kev ua tag nrho cov hauj lwm tsim nyog los yog xav tau rau hauv kev cuam tshuam nrog. (Joint Powers Financing Authority action)

REPORT TO THE CITY COUNCIL    FROM: SANTINO DANISI, City Controller/Finance Director Finance Department BY: KALEB NEUFELD, Assistant City Controller Finance Department  SUBJECT: ..Title Actions pertaining to issuance and sale of 2026 Lease Revenue Bonds to finance the Pave More Now Projects and Police Department Administration Building Improvements: ***RESOLUTION - Approving the issuance by the Fresno Joint Powers Financing Authority of lease revenue bonds in an aggregate principal amount not to exceed $130 million, authorizing the execution and delivery of a first amendment to master facilities lease, a first amendment to master facilities sublease, a bond purchase agreement, an official statement and a continuing disclosure certificate; and authorizing execution of documents and the taking of all necessary actions relating to the financing. (City action) (Requires Five Affirmative Votes) (Subject to Mayor’s Veto) RESOLUTION of the Fresno Joint Powers Financing Authority authorizing the issuance and sale of Lease Revenue Bonds (Pave More Now Projects and Police Department Administration Building Improvements), Series 2026, authorizing the execution and delivery of a first supplemental trust agreement, a first amendment master facilities lease, a first amendment master facilities sublease, a bond purchase agreement, and an official statement, and authorizing the taking of all necessary actions relating to issuance of the Series 2026 Bonds. (Joint Powers Financing Authority action) ***RESOLUTION - Authorizing the release of facilities and amendment of the 2008 Master Facilities Lease and 2008 Master Facilities Sublease relating to the Fresno Joint Powers Authority Lease Revenue Bonds (Master Lease Projects) and approving the taking of all necessary or desirable actions in connection therewith. (City action) (Requires Five Affirmative Votes) (Subject to Mayor’s Veto) RESOLUTION of the Fresno Joint Powers Financing Authority authorizing the release of facilities and amendment of the 2008 Master Facilities Lease and 2008 Master Facilities Sublease relating to the Fresno Joint Powers Authority Lease Revenue Bonds (Master Lease Projects) and approving the taking of all necessary or desirable actions in connection therewith. (Joint Powers Financing Authority action) ..Body RECOMMENDATION   Staff recommends adoption of the resolutions contained herein authorizing the issuance and sale of Lease Revenue Bonds (Pave More Now Projects and Police Department Administration Building Improvements), Series 2026 (the Series 2026 Bonds) in an aggregate principal amount not to exceed $130 million to support the construction of road projects under the Pave More Now program and tenant improvements to the Police Department Administration Building, and authorizing the execution and delivery of a first amendment to master facilities lease, a first amendment to master facilities sublease, a first supplemental trust agreement, a bond purchase agreement, an official statement and a continuing disclosure certificate; and authorizing execution of documents and the taking of all necessary actions relating to the financing. Further, staff recommends the adoption of the resolutions authorizing an amendment of the 2008 Master Facilities Lease and an amendment of the 2008 Master Facilities Sublease (together, the 2008 Lease Amendments) to provide for the release of certain facilities relating to the Fresno Joint Powers Authority Lease Revenue Bonds (Master Lease Projects). Of the facilities to be released pursuant to the 2008 Lease Amendments, the City and the Authority expect to lease and sublease City Hall and Ernest E. Valdez Hall in connection with the Authority’s proposed issuance of the Series 2026 Bonds.   EXECUTIVE SUMMARY   The City of Fresno is seeking to obtain financing for the construction of road projects under the Pave More Now program and tenant improvements for the Police Department Administration Building (as detailed below). Staff requests that the Fresno Joint Powers Financing Authority authorize, and the City of Fresno approve, the issuance and sale of the Series 2026 Bonds, for this purpose in an amount not to exceed $130 million. The Series 2026 Bonds will be subject to a not to exceed true interest cost of 6.0 percent (6%) and will mature no later than April 1, 2057. Staff also recommends the authorization, execution and delivery of all documents, and the taking of all necessary actions relating to the financing.  BACKGROUND   Through previous Council action, the City of Fresno has authorized a series of activities aimed at addressing priority infrastructure needs, including road projects under the “Pave More Now” program and tenant improvements to the Police Department Administration Building. Proceeds from the proposed issuance of the Series 2026 Bonds will be utilized to deliver these projects. Pave More Now Program: In FY 2022, the City completed a pavement management program update and provided a workshop to the Council, with the assistance of NCE, an engineering consulting firm specializing in asset management, pavement condition assessments and treatments. At the time of the assessment, the average pavement condition index (PCI) for the City of Fresno was 60, which falls within the “fair” or “at-risk” condition category. The assessment from FY 2022 also found that the City had $505 million in deferred road maintenance. It was determined that these Citywide road infrastructure challenges required immediate attention to mitigate further degradation. On May 22, 2025, Council adopted Resolution 2025-700 declaring the official intent to use proceeds of future indebtedness to reimburse the City for certain expenditures related to capital costs of the Pave More Now program. Resolution 2025-700 established a $100 million bond program to support the objectives of the Pave More Now program, including the reimbursement of prior expenditures in FY 2026 and the advancement of projects to be constructed in FY 2027 and FY 2028. To date, Council has awarded several bid packages under the Pave More Now program: Bid Package A: Approved on August 28, 2025. Awarded a $5,723,199 construction contract to Cal Valley Construction, Inc. for pavement work across seven initial areas, including Shields Avenue, Shaw Avenue, McKinley Avenue, Ventura Street, First Street, South Downtown (Los Angeles Street), and the McKinley-Palm-Olive-Fruit neighborhood. Bid Package B-1: Approved on February 26, 2026. Awarded an $8,329,396 construction contract to Agee Construction Corporation for citywide pavement reconstruction, including Shields Avenue, Figarden Drive, further work in the McKinley-Palm-Olive-Fruit neighborhood, Ashlan Avenue, Fresno Street, Cedar Avenue and the McKinley-Winery-Tulare-Chestnut neighborhood. Bid Package B-2: Approved on June 18, 2026. Awarded a $14,488,896.79 construction contract to Archer Civil Construction LLC to rehabilitate pavement across ten separate areas in six council districts, including the Tielman-Clinton-Fruit-McKinley neighborhood, Shaw Avenue, Nees Avenue, Ingram Avenue, Dakota Avenue, the Santa Ana-First-Gettysburg-Augusta neighborhood, Church Avenue, Sixth Street and Perrin Avenue. In addition, the City has completed multiple Pave More Now projects through the Street Maintenance Division, including Santa Fe Avenue, Poplar Avenue, Winery Avenue, the Shields-Van Ness-Clinton-Palm neighborhood and the Belmont-Wishon-Dudley-Palm neighborhood. Police Department Administration Building Tenant Improvements: The City previously entered into a lease agreement with an option to purchase a facility for a new Police Department Administration Building located at 2314 Mariposa Street. The three-story building offers 63,035 square feet with a basement area and parking. A portion of the financing proceeds from the issuance of the Series 2026 Bonds will finance tenant improvement costs. The Series 2026 Bonds. The Projects will be financed through the issuance of the Series 2026 Bonds. The Series 2026 Bonds are estimated to generate total proceeds of $124.5 million, which will primarily fund the costs of the Projects ($108.6 million) in addition to funding a capitalized interest account and paying certain costs associated with the issuance of the Series 2026 Bonds (i.e. legal costs, advisor costs, rating agency fees, bond insurer fees, and underwriter fees). The Series 2026 Bonds will have a final maturity of April 1, 2057. Annual debt service beginning in FY 2030 is estimated to be $8.33 million. The authorizing resolution includes an exhibit of good faith estimates required by Section 5852.1 of the California Government Code regarding the proposed Series 2026 Bonds. Such estimates provide true interest cost, net proceeds, and total debt service payments related to the Series 2026 Bonds and are based on market conditions as of October 26, 2027. Actual results may differ as market conditions change. Final results will be determined on the sale date of the Series 2026 Bonds. Staff anticipates pricing and closing the Series 2026 Bonds in December 2026. The City’s issuance of the Series 2026 Bonds is secured by its 2025 Master Lease Agreement to be amended by a first amendment to master facilities lease and its 2025 Master Sublease Agreement to be amended by a first amendment to master facilities sublease. Concurrent with the issuance of the Series 2026 Bonds, the City and the Authority will release certain facilities under the 2008 Master Lease. Resolutions of the City and the Authority would authorize amendments to existing 2008 Master Facilities Lease and 2008 Master Facilities Sublease (the “2008 Lease Amendments) necessary to effectuate the release of City Hall, Ernest E. Valdez Hall, Fresno Memorial Auditorium, Parking Garage No. 4, and Fire Station No. 16. Upon the execution and recordation of the 2008 Lease Amendments the City and the Authority expect to lease and sublease City Hall and Ernest E. Valdez Hall in connection with the Series 2026 Bonds. The City’s internal financing team is supported by external professionals comprised by staff from Orrick, Herrington & Sutcliffe LLP in the role of Bond Counsel and Disclosure Counsel, KNN Public Finance, LLC as Municipal Advisor, and Loop Capital Markets LLC and Stifel, Nicolaus & Company, Incorporated serving as underwriters for the 2026 Bonds.   ENVIRONMENTAL FINDINGS   This item is not a project of the City of Fresno and as such, the California Environmental Quality Act requirements are not applicable.   LOCAL PREFERENCE   Local preference was not considered because the resolutions do not include a bid or award of a construction or service contract.   FISCAL IMPACT   Annual debt service (inclusive of semi-annual interest and annual principal) is currently estimated at $8.33 million, payable from the General Fund. Semi-annual debt service payments commence October 1, 2029 and will continue through April 1, 2057. Annual debt service estimates are subject to changes in market conditions prior to the day of sale of the Series 2026 Bonds expected in early December 2026. Attachments Related to the Issuance of the Series 2026 Lease Revenue Bonds: City Council Resolution – Authorizing Issuance Joint Powers Financing Authority Resolution – Authorizing Issuance First Amendment to 2025 Master Facilities Lease First Amendment to 2025 Master Facilities Sublease First Supplemental Trust Agreement Preliminary Official Statement Continuing Disclosure Certificate Bond Purchase Agreement Attachments Related to the Master Lease Release: City Council Resolution – Master Lease Release Joint Powers Financing Authority Resolution – Master Lease Release Amendment to Master Facilities Lease Amendment to Master Facilities Sublease City Certificate Consent of Bond Insurer