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HomeMy WebLinkAboutcc min 1995/05/23 PFA MINUTES OF A SPECIAL JOINT MEETING OF THE PUBLIC FINANCING AUTHORITY/ CITY COUNCIL, OF THE CITY OF CHULA VISTA Tuesday, May 23, 1995 Council Chambers 10;01 p.m. Public Services Building CALL TO ORDER 1. ROLL CALL: PRESENT: Authority/Council Members Alevy, Moot. Padilia, Rindone, and Chair/Mayor Hotton ALSO PRESENT: John D. Goss, Director/City Manager; Bntce M. Boogaard, Authority/City Attorney; and Vicki C. Snderquist, Deputy City Clerk 2. APPROVAL OF MINUTES: None BUSINESS 3. ~VRITTEN COMMUNICATIONS: None 4.A. RESOLUTION 17911 ADOPTING THE REASSESSMENT REPORT, CONFIRMING AND ORDERING THE REASSESSMENT PURSUANT TO SUMMARY PROCEEDINGS AND DIRECTING ACTIONS WITH RESPECT THERETO--To accomplish refinancing, a reassessment of properties is required pursuant to a reassessment report. Council is being asked to adopt the reassessment report, order the reassessment, authorize the sale of refunding bonds to the Authority, and approve other related documents and actions. (Director of Finance) B. RESOLUTION 17912 AUTHORIZING THE ISSUANCE OF REFUNDING BONDS, APPROVING AND DIRECTING THE EXECUTION OF A FISCAL AGENT AGREEMENT AND AN ESCROW DEPOSIT AND TRUST AGREEMENT, AUTHORIZING SALE OF BONDS, AND OTHER RELATED DOCUMENTS AND ACTIONS WITH RESPECT THERETO C. RESOLUTION 1 AUTHORIZING ISSUANCE AND SALE OF TWO SERIES OF REVENUE BONDS IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $20,150,000 FOR THE PURPOSE OF FINANCING ACQUISITION OF REFUNDING ASSESSMENT BONDS TO BE ISSUED BY THE CITY OF CHULA VISTA AND APPROVING RELATED AGREEMENTS AND ACTIONS Authority/Council Member Rindone questioned what the Public Financing Authority was. Robert Powell, Director of Finance, replied that on 4/4/95, the Council/Agency approved a joint power authority agreement to form the Chula Vista Joint Powers Financing Authority tier the purpose of pooled financing to maximize savings to the property owners. Authority/Council Member Rindone stated he was not present at that meeting and, therefore, it was new to him. He questioned why it was not under the presently established entities. Mr. Powell responded that State law required that it be done under a joint powers authority. Authority/Council Member Rindone questioned if the Council and Agency was a joint powers authority and if there were any other options available. Minutes May 23, 1995 Page 2 i..._.. Mr. Powell stated that was not his understanding. Mr. Boogaard stated the City was taking advantage of the law that was designed to allow agencies, not just all controlled by the same council but in the same region and/or area, to join together for the purpose of pooling their resources to refinance or finance obligations. ® Chick Adams, Bond Counsel Jones Hall Hill & White, stated the legislation was only available to joint powers authorities and it authorized joint powers authorities to specifically bond bank assessment bonds into a single issue of joint powers authority bonds. Staff would have preferred to use an existing public agency had the joint powers been broad enough to do so, bnt the Public Financing Authority was the only choice. Authority/Council Member Rindone stated there were no assets, liabilities, rules or regulations, board of governors, or procedures. Mr. Adams stated as a result of the 1986 Bond Pooling Act that was correct. The asset was the authorities ability to use those statutes. Authority/Council Member Alevy summarized that it enabled the City to minimize the risk by making it insurable and reduce assessments to the homeowners without extending the life of the bond. Mr. Adams stated that was correct. Mr. Boogaard stated the entity Member Rindone was concerned about was controlled by the joint powers agreement that the parties approved and could have been molded in any way. It was contained in the information presented to the Authority/Council. The powers could be limited with regulations in the agreement. Mr. Adams stated that many cities would use a non-profit organization for their financing, but a joint powers authority did not have the same extensive filing requirements. Once the financing was done there was no ongoing business. Mr. Boogaard questioned if the agreement was limited to the financing by its terms. Mr. Adams replied that it was not. Because the 1986 Act was such a useful bond act the agreement was designed to be used as broadly as the 1986 Act permitted. If there was another financing in the future that would lend itself to the joint powers authority it would be available. COUNCIL RESOLUTIONS 17911, 179121 AND AUTHORITY RESOLUTION 1 Olq~'ERED BY AUTHORITY/COUNCIL MEMBER ALEVY, reading of the text was waived. Mr. Boogaard questioned if it had been determined whether any of the Members had interest in any of the refinance districts and needed to abstain from voting. Mr. Powell responded that Member Padilia lived in one of the assessment districts. Authority/Council Member Padilia stated based on that infbrmation he would abstain from voting on the item. VOTE ON MOTION: approved 4-0-0-1 with Padilia abstaining. ORAL COMMUNICATIONS None Minutes May 23, 1995 Page 3 OTHER BUSINESS 5. DIRECTOR'S/CITY MANAGER'S REPORT(S) - None 6. CHAIR'S/MAYOR'S REPORT(S) - None 7. AUTHORITY/COUNCIL MEMBER COMMENTS - None ADJOURNMENT ADJOURNMENT AT 10:t5 P.M. to a Special Meeting when called by the Public Financing Authority, the City Council, or Redevelopment Agency. Respectfully submitted, BEVERLY A. AUTHELET, CMC/AAE, City Clerk ,\ \',, ',.\ ! \ ':' by: Vicki C. Soderquist, CMC, _i~e,p~ty City Clerk