HomeMy WebLinkAboutDraft Minutes 05/17/1999 DRAFT DRAFT DRAFT
1 , City of'Petaluma, California
2 Petaluma'Community Development Commission
3 Minutes oVa Regular Meeting
4 Monday, May 17, 1999
5
6 ROLL CALL:3:00 p.m.
7
8 PRESENT`. Healy, Torliatt, Cader-Thompson, Hamilton;- Maguire, Vice Mayor Keller, Mayor
9 Thompson
10
11 Don Weisenfluh led PLEDGE OFALLEGIENCE
12
13 PUBLIC COMMENT: There was no one wishing to speak.
14
15 MINUTES:
16
17 The Minutes for May 3, 1999 were approved as.corrected.
• 18 Page 1 Line 21 also reflect that Ms. Gaebler emphasized that Eden Housing is very
19 flexible and will develop the East Washington project site, however the city wishes
20 either as all low income!oras mix of market rateand low income.
21 Page 1 Line 22, they are 102 low and low-income units. Correct to say there are 102
22 low-income units within, the Petaluma Hotel, which is a block within the project site
23 Continue with the next sentence it says, she recommended this be a mixed-use facility
•, 24 and I believe she was specifically talking about the East Washington or the project site
25 as opposed to the Petaluma Hotel.
26 Page 1 Line 24 end`of`sentence should reed 'it.should reflect a percentage of people in
27 the community.
28 Page 2 Line 33, change final fix to final mix.
29
30 NEW BUSINESS
31
32 David Spilman, Finance Director, gave a presentation regarding the issuance of Tax
33 Allocation Bonds. He stated that the Petaluma Community Development
34 Commission needs. to issue Tax Allocation. Bond debt to finance the Flood Control
35 project;over the next year Because of the current funding needs of the project, the
36 bonds need to be issued prior to June 30, 1999.
37
38 The proposed tax allocation bond issue will be a refinancing of the 1992 Tax
39 Allocation Bonds and adding new funds for the Payran Flood Control Project. It is
40 proposed to authorize an amount not to exceed $18 million in Tax Allocation Bonds.
41 This will provide sufficient funding for the refinancing and' additional funds for the
42 Flood C ontrol Project cash flow.
43
44 Due to prior funding of the bridges and Phase 1 U Shaped Channel, there is a need
• 45 to close the Tax Allocation Bond issue by June 30, 1999. This is due to the
46 payments made by the City to the Corp. of Engineers for the funding of Phase II of
Draft Minutes 405
Petaluma Community Development Commission
Monday, May'17; 1999
DRAFT DRAFT DRAFT
1 the Flood Control ,project. In addition, there has been a delay in reimbursement
2 from the Sonoma County Water Agency for the Phase I (U-shaped Channel) and •
3 the advance for Phase II (Trapezoidal Channel) Flood Control project costs. In
4 order not to delay the Phase II, the City has advanced funds which may require
5 short term Interfund transfers, when the Fiscal Year ends on June 30, 1999; if the
6 Tax Allocation Bond issue is notcompleted.by then.
7
8 Pamela Torliatt: What;is the existing interest ratefor the 1992 Tax Allocation Bonds
9 and what do.you anticipate refinancing at?
0
1 David Spilman, the existing interest rates range from 5.6A% to 6.5% on the balance
2 of the outstanding bonds. We will be looking at the proposed refinancing with an
3 average interest rate of about 4.8%. .
4
5 Pamela Torliatt, Where are these Interfund transfers coming from? And when will
6 that be repaid? .
7
8 David Spilman, the money is coming from a variety, of funds. Essentially Traffic .
9 Mitigation funds, Community Facilities funds and Water and Sewer Funds:
0 This Bond issue would infuse $6.6 million dollars.of cash back into those`funds and
1 replace what was borrowed.
2 .
3 DK,, looking, at' the reimbursement on the Flood Project you have $32 million
4 identified and committed, what's the time table-for that to come back? •
5
6 DS, the bulk of those funds will come Sonoma County Water Agency, which we
7 anticipate that;those agreements will be finalized by next month. Funds will be able
8 to be drawn down almost immediately. The State Department of Water Resources,
9 those funds, the balance of the total $4 million is scheduled to be paid in equal
0 increments over the next three years.
1
2 DK, if we don't have to bond it there is a tremendous number of projects that are
3 expensive that I want this district to be able to fund. I need some equivalent
4 numbers over the eight year projection and I need to see a balance Sheet for what
5 the future expenditures are versus assured reimbursements from other agencies
6 that we already have under agreement. Then:what are the longer shot funding
7 sources (DWR, Corp. of Engineers) that are possible, not identified or committed
8 you say and what the likely hood,of getting that money in is going to be over what
9 time period so we don't run into a cash flow crunch. If we need bonding to handle
0 cash flow that is one thing, but I am concerned about chewing up a tremendous
1 amount of our bonding capacityto makeit'convenient to pay the bills.
2
. 3 Bryant Moynihan, 102 Dawn Place,, pointed out that there is a separate entity.here
4 which is the PCDC and it is not always easy to remember because. you are the
5 Council also We are talking about,funding cash shortages that are not.the PCDC
6 cash shortages, but that of the City. What is being proposed here is up to $18 •
Page 406 Draft Minutes
Petaluma Community.Developrnent`Commission
Monday, May'17, 1999
DRAFT DRAFT DRAFT
1 million dollars in bond revenues of which approximately$10 million is going to be
2 loaned to the City' by this Commission? I don't think that is appropriate use of
3 funds. I don't believe it's.a legal use of the funds and .I don't think it meets the
4 criteria or the goals of this organization, the PCDC that'you'have stated in as far as
5 your budget has gone that you approved in February of this year. I would
6 encourage you from a fiduciary point of view take the prudent course of action and
7 deny this request.
8
9 Mike Healy, would like the Commission to. hold a workshop on this issue. We
10 should be sizing this issue at a minimal level to get through the immediate funding
11 requirements, make some reasonable assumptions about the timing and level of
12 reimbursements that we can reasonably expect. Think about the degree to which
13 we should be trying to unwind existing,Interfund;borrowings so that for instance the
14 Traffic Mitigation fund can fund traffic mitigation projects. It seems to me the issue
15 that we are being asked to approve today are just preliminary steps to get us to the
16 point where we can issue bonds.
17
18 Pamela Torliatt agrees this needs to come back to the Commission. What is the
19 funding that we want to allocate'? What projects are coming up that needs bonding
20 in one year or two yea rs?
21
22 'David Keller agrees with a workshop with Libby Seifel: Look at our wish list for
23 projects, What kind of participation do we want this agency to have in them. What
• 24 the priorities are, The timeline for expenditures and a list that can be updated
25 annually.
26
27 The following Resolutions were introduced by Matt Maguire, seconded by Mike
28 Healy:
29
30 99-09A Resolution directing staff to proceed with preparation of Bond Documents
31 and Publication of a Notice of Intention to Sell Bonds.
32
33 ' 99-09B Resolution appointing Jones Hall as Disclosure Counsel for Issuance of
34 Tax Allocation Bonds.
35
36 99-09C Resolution appointing Investment.Advisor for Issuance of Tax Allocation
37 Bonds.
38
39 AYES: Healy, Cader-Thompson, Torliatt, Maguire, Hamilton,;Mayor Thompson
40 NOES: Vice Mayor Keller
41 ABSENT: None
42
43 99-09D Resolution appointing Orrick, Herrington & Sutcliffe as Bond Counsel for
44 the Issuance of'Tax,Allocation Bonds. Introduced by Maguire, seconded
45 by Healy.
46
•" 47 AYES: Healy, Cader-Thompson, Maguire, Hamilton, Mayor Thompson
Draft Minutes 407
Petaluma Community Development Commission
Monday, May17, 1999
r
c
DRAFT DRAFT DRAFT
1 NOES: Torliatt,•Vice;Mayor Keller
2 ABSENT: None
3 •
4 AJOURN 4:05 p m.
5 •
6
7 E. Clark Thompson Chairman
8 •
9 ATTEST:
0 •
1 Paulette Lyon, Deputy Recording Secretary
•
•
•
•
Page 408 Draft Minutes
Petaluma,Community'Development Commission
Monday, May 17, 1999