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Home My WebLink AboutPFA Min 2008-12-08Seal Beach, California December 08, 2008 The City Council of the City of Seal Beach and the Seal Beach Public Financing Authority met in a special joint session at 7:07 p.m. with Mayor Antos calling the meeting to order with the Salute to the Flag. The Special Meeting Notice read as follows: CALL AND NOTICE OF A SPECIAL MEETING OF THE SEAL BEACH PUBLIC FINANCING AUTHORITY TO MEMBERS OF THE BOARD OF DIRECTORS OF THE SEAL BEACH PUBLIC FINANCING AUTHORITY YOU ARE HEREBY NOTIFIED THAT, pursuant to Section 54956 of the California Government Code, Chairman Chades J. Antos hereby calls a special meeting of the Seal Beach Public Financing Authority to be convened in the City Council Chamber, 211 • 8th Street, Seal Beach, California, 90740 on December 8, 2008 at 7 00 p.m. for the purpose of discussing and taking action on the following item: Lease Revenue Bonds, Series 2009 - After a public hearing, the Seal Beach Public Financing Authority will consider adopting Resolution No. FA 08-01 authorizing the sale, issuance and delroery of Lease Revenue Bonds, approving as to form and authorizing the execution and delroery of related documents and authorizing other matters relating to the issuance of the bonds. Please note that members of the public will be provided an opportunity to duectly address the Board concerning any item described herein before or during consideration of that dem. Dated this 5th day of December 2008 /s/ Charles J. Antos, Chairman ROLL CALL Present: Mayor/Chairman Antos Council Members/Board Members Levitt, Miller, Shanks, Sloan Others present: David Carmany, City Manager Quinn Barrow, City Attorney Lee Whittenberg, Director of Development Services Vince Mastrosimone, Director of Public Works Robbeyn Bird, Director of Administrative Services/Treasurer Chief Jeff Kirkpatrick, SB Police Department Jill Ingram, Assistant to the City Manager Lieutenant Tim Olson, SB Police Department Captain Joe Bailey, SB Lifeguard Department Battalion Chief Don Forsythe, OCFA Anita Chapanond, Administrative Assistant ' Marisa Sallcos, City Clerk Aide Linda Devine, City Clerk APPROVAL OF AGENDA & WAIVER OF FULL READING OF RESOLUTIONS & ORDINANCES Mayor Antos requested that item "X" -Declare the Results of the November 4, 2008 Seal Beach General Municipal Election and Swearing-in be placed before Presentations/Recognitions. Agenda items removed from the Consent Calendar for separate consideration: item "H" -Levitt; item "L" -Shanks; item "M" -Miller; and item "T" -Sloan. Shanks moved, second by Miller, to approve the agenda as amended. AYES: Antos, Levitt, Miller, Shanks, Sloan NOES: None Motion carried Seal Beach Public Financing Authority PUBLIC HEARING Mayor Antos announced this was the time and place for a joint public hearing for City Council and the Seal Beach Public Financing Authority to consider adoption of Resolution No. 5824 (City of Seal Beach) and Resolution No. FA OS-01 (Seal Beach Public Financing Authority) to authorize the issuance of Lease Revenue Bonds, approve the form of and authorize the execution and delivery by the City Manager of an Indenture, Lease, Sublease, Assignment Agreement, Bond Purchase Agreement with Bank of America, and make a Finding of Public Benefit. The City Clerk stated that the public hearing notice was published in the Sun newspaper on November 27th, 2008, and no correspondence for or against the matter was received. The City Manager introduced Lolly Enriquez, Bond counselor from Richards, Watson, & Gershon and Mike Whipple, financial advisor from MF Whipple & Associates. Mr. Whipple presented an overview of the Seal Beach Public Financing Authority Lease Revenue Bonds, Series 2009 for the Fire Station Financing (presentation on file in the Office of the City Clerk) and explained what actions are requested to be taken at this joint meeting. Proposed time table: Receive construction bids -January 6th; Pre-closing (complete all documents) -January 7th; and Closing -January 8th. Summary of terms: Issue -Seal Beach Public Financing Authority, Lease Revenue Bonds, Series 2009 (Fire Station); Amount not to exceed - $9,000,000; Term - 15 year maturity (quarterly payments); Indicative Rate as of 12-08-08 - 4.2%; Original Purchaser -Bank of America; Trustee -Wells Fargo Bank; Bond Counsel - Richards, Watson, & Gershon; Financial Advisor - MF Whipple & Associates. Mayor Antos then opened the public hearing. Speakers: Robert Goldberg. Clipper Way, suggested council wait to see if the federal government (new administration) could fund part of the project and should have the City's Washington lobbyist push some funding or a 0% loan -there is no urgency for the fire station replacement; and Eldon Alexander, 8th Street, questioned what a postponement of the project would do to the agreement with Leisure World for leased area for temporary fire station. There were no other speakers the Mayor closed the public hearing. Council concerns and responses: • Bank of America has competitive rates and was selected because there is an existing relationship with the City and many of the other financial institutions no longer exist -the advantage is the 4.2% interest rate and minimal costs associated with this transaction and minimized disclosure requirements. • 15 year financing lease payment includes the leasing of the City facilities that are used for collateral. • After completion of the fire station there will be a valuation of the new fire station to determine if it adequate to secure the obligation - it is anticipated that it would be adequate - if not there would be continued collateral obligation on the City Hall. • The law and constitution do not require collateral for the Pension Obligation Bonds due to refinancing an existing unfunded debt obligation. • Could use general fund reserves to pay for the fire station and upon completion refinance -council could adopt a resolution which would anticipate at some future date an option to issue debt. • Wait to see if the City could qualify for federal government funds -would rather not use city hall and police station as collateral -too many economic uncertainties for next year. • Council would like to approve the award of bid for the project (01-12-09) before closing date. • Assumption is that the bids will come in lower because of the economic situation of the country. • If City lobbyist could give a timeline as to when there would be funds available then it would be worth delaying the project. • If there are federal funds available it would take at least one year to apply for it -funds would go through the state and/or county. Currently the City is in a position which the interest rates are at an historical low -benefit right now with low construction costs and low interest rates. With no objection the pre-closing date was changed to January 14th and bond closing date changed to January 15th. The City Attorney clarified that if Council adopts the resolutions with the date changes then on January 12th Council will have the opportunity before the bonds are issued to stop the process. Shanks moved, second by Levitt, to amend and adopt Resolution Number 5824 entitles "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH MAKING A FINDING OF PUBLIC BENEFIT AND APPROVING AS TO FORM AND AUTHORIZING THE EXECUTION AND DELIVERY OF CERTAIN DOCUMENTS IN CONNECTION WITH THE ISSUANCE AND SALE OF SEAL BEACH PUBLIC FINANCING AUTHORITY LEASE REVENUE BONDS, SERIES 2009, AND AUTHORIZING CERTAIN OTHER MATTERS RELATING THERETO". AYES: Antos, Levitt, Shanks, Sloan NOES: Miller Motion carried Sloan moved, second by Shanks, to amend and adopt Resolution Number FA 08-01 entitled "A RESOLUTION OF THE SEAL BEACH PUBLIC FINANCING AUTHORITY AUTHORIZING THE SALE, ISSUANCE AND DELIVERY OF LEASE REVENUE BONDS AND APPROVING AS TO FORM AND AUTHORIZING THE EXECUTION AND DELIVERY OF DOCUMENTS RELATING THERETO AND AUTHORIZING CERTAIN OTHER MATTERS RELATING THERETO". AYES: Antos, Levitt, Shanks, Sloan NOES: Miller Motion carried ADJOURNMENT It was the order of the Chair, with consent of the Council, to adjourn the City Council meeting at 10:15 p.m. to January 12, 2009 at 6:30 p.m. to meet in closed session, if deemed necessary and canceled the December 22, 2008 City Council meeting. ec~ tary/City Clerk City of Seal Beach Approved: ChairmanlMay Attest: /~ . City Clerk