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Manhattan Beach approves COPs to reimburse $13.44M land purchase and buy new public‑safety radios
Summary
The City Council voted to authorize two series of certificates of participation — up to $13.44 million to reimburse the general fund for the purchase of 400 Manhattan Beach Boulevard and up to $3.8 million for replacement public‑safety radios — using a three‑year 'put' structure that staff said preserves refinancing flexibility while the city defines a project plan.
The Manhattan Beach City Council on Aug. 5 authorized issuance of two certificate‑of‑participation financings to repay recent purchases and to fund equipment, approving Resolution No. 25‑0103 after a staff presentation and council questions.
Finance Director Libby Brehower told the council the plan calls for two COP series: up to about $13.44 million (2025A) to reimburse the general fund for the city’s purchase of 400 Manhattan Beach Boulevard, and up to $3.8 million (2025B) to reimburse the city for replacement public‑safety radios. "These purchases first came before council in April and June," Brehower said, adding that the city’s AAA issuer rating and recent S&P affirmations support lower borrowing costs.
Municipal adviser Larry Long outlined the financing structure the city will use for the 2025A issue: a term, tax‑exempt COP with a three‑year "soft put" that allows the city to refinance into long‑term fixed‑rate debt after an anticipated planning window. Long said the COPs would be interest‑only during the three‑year period, with a targeted refinance date of July 1, 2028. "If the city cannot refinance by that date," he said, "the coupon would step up to 6% for 89 days and then to 8% if necessary," a penalty intended to spur the planned refinance.
For the 2025B radios financing, Long described a more conventional seven‑year fixed‑rate COP with six principal payments starting in 2027.
Council members asked detailed questions about early cost estimates for design and entitlements, revenue scenarios for options at 400 Manhattan Beach Boulevard, and the legal mechanics of COP lease/leaseback structures. Brehower said staff now estimates about $2 million over three years for early project costs (environmental review, schematic design and consultant work) though the FY26 budget includes $1 million as a placeholder; she said the remainder could be budgeted in future CIP appropriations. The council was also reminded of a public study session on Aug. 26 to present project options and community engagement under the city’s "Project Pulse" process.
After public comment and discussion, the council voted to adopt Resolution 25‑0103 to authorize issuance of the two COP series. The motion passed, recorded by the clerk as 4‑0‑1 (one absence). Staff and advisors said the city planned to post a preliminary official statement the next day, price the COPs in the following week and close the financing on Aug. 27 to receive funds.
What this means: the 2025A financing gives the city money now to restore its general fund after the land purchase while preserving flexibility to choose a permanent financing and the final program for 400 Manhattan Beach Boulevard after public input. The 2025B financing replaces aging radio equipment for police and fire, which staff said have roughly seven‑year useful lives.
Next steps: staff will convene a community study session on Aug. 26 on site options and the council will monitor the planned refinancing window centered on July 1, 2028.
