2010-06-24 Joint CC APFA ARRA CIC PacketCITY OF ALAMEDA 9 CALIFORNIA
SPECIAL JOINT MEETING OF THE CITY COUNCIL
ALAMEDA PUBLIC FINANCING AUTHORITY (APFA),
ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY (ARRALAND
COMMUNITY IMPROVEMENT COMMISSION (CIC)
THURSDAY -JUNE 24 2010 7:00 P.M
Location: City Council Chambers, City Hall, corner of Santa Clara Ave and Oak Street
Public Participation
Anyone wishing to address the Council /Authority /Board /Commission on agenda items
or business introduced by the Council /Authority /Board /Commission may speak for a
maximum of 3 minutes per agenda item when the subject is before the
Council /Authority /Board /Commission. Please file a speaker's slip with the Assistant City
Clerk if you wish to speak.
1 ROLL CALL City Council, APFA, ARRA, CIC
2. CONSENT CALENDAR
Consent calendar items are considered routine and will be enacted, approved or
adopted by one motion unless a request for removal for discussion or
explanation is received from the Council or a member of the public
2 -A. Recommendation to Award Legal Ad Contract for Fiscal Year 2010 -11. [City
Council] (City Clerk)
2 -13. Adopt Resolutions Approving Interim Expenditures Prior to Adoption of the
Operating and Capital Budget for FY10 -11. [City Council, ARRA, CIC]
(Finance)
2 -C. Adoption of Resolution Approving Revised Documents Related to the Issuance of
IRe {u�di ng B� nds for the city's C unity Facilities Distr No. 1 (Narbor Bay)
and Marina village Assessment District 89 -1 and Authorizing Actions in
Connection Therewith. [City Council]; and
Adoption of Resolution Approving Revised Documents Related to Local
Agency Refunding Revenue Bonds. (Harbor Bay CFD and Marina Village AD),
and Authorizing Actions in Connection Therewith. [APFA] (City Manager)
3. CITY MANAGER/EXECUTIVE DIRECTOR COMMUNICATION
3 -A. Redevelopment Impacts on Alameda Unified school District
3-B. Update on Measure P
3-C. Cit Asset Mana Polic
4. AGENDA ITEMS
None
5. COUNCIL REFERRAL
Matters placed on the a b a Councilmember ma be acted upon or
scheduled as a future a item
5-A. Discussion of Reconsiderin the Council Action to Refer the Campai Finance
Reform Ordinance to the Sunshine Task Force. (Ma Johnson
6. ADJOURNME Cit Council, APFA, ARRA, CIC
Beverl jch[rl. y or
Chair, APP�t," R and CIC
CITY OF ALAMEDA
Memorandum
To: Honorable Mayor and
Members of the City Council
From: Lara Weisiger
City Clerk
Date: June 24, 2010
Re: Award Contract for Legal Advertising for Fiscal Year 2010 -11
BACKGROUND
At the Regular City Council meeting held on May 4, 2010, the City Council authorized
the City Clerk to advertise for bids for legal advertising. City Charter Section 3-18
requires the Council to: "award a contract to the responsible bidder who submits the
lowest and best bid for publication of all legal advertising of the City in a newspaper
adjudicated to be a newspaper of general circulation within the City of Alameda. The
newspaper published by the successful bidder is known as the official Newspaper of
the City."
DISCUSSION
The bids were due on June 1, 2010. The bids were rejected and the contract was re-
bid. Two bids were received on June 10, 2010. Bid results were as follows:
Newspaper Rate Per Column Inch
1st Insertion 2nd subsequent insertions
q e Ions
Alameda Journal $4.90 $4.90
San Francisco Chronicle $4.99 $4.99
The Alameda Journal is the low bidder.
FINANCIAL IMPACT
The funds for this activity are budgeted in various departments and are approved by the
City Council during the budget process. The City spends approximately $20,000
annually for legal notices, of which $10,590 is from the General Fund.
RECOMMENDATION
Award attached Legal Advertising Contract for Fiscal Year 2010-11 to the Alameda
Journal.
CCIAP FA/AR C 1 C
Agenda Item -A
6 -24 -10
Honorable Mayor and
Members of the city council
Respectfully submitted,
Lara Weisiger
City Clerk
Approved as to funds and account,
Evelyn Leung
Interim Supervising Accountant
June 15, 2010
Page 2 of 2
Exhibit:
1. Alameda Journal contract
AGREEMENT
THIS AGREEMENT, made and entered into this day of June,
20 10, by and between the CITY of ALAMEDA, a municipal corporation of the State of
California, hereinafter called the City, and the ALAMEDA JOURNAL, a published
dally newspaper, hereinafter called Publisher,
wITNE S S ETH
WHEREAS, the Alameda Journal submitted its bid, in writing, for the
publication, of all legal advertising of the City for the period ending June 30, 2011
whereupon the Council of said City, on the 15 day of June 201 0, duly accepted said bid
and awarded the contract for such legal advertising to said Publisher;
NOW THEREFORE, it is mutually agreed by and between the
undersigned parties as follows:
1. Publisher agrees that during that fiscal year the said _Alameda Journal
shall be maintained as a newspaper of general circulation as that teen is defined in Title
I, Division 7, Chapter 1, Article 1, of the Government Code of the State of Califon ia.
2. Publisher, hereby agrees to publish and advertise in said Alameda
Journal, for and during the period from July 1, 2010 and ending June 3 0, 2011, such
legal advertisements and notices and such other matters as the Council and other officers
of the City deliver to Publisher for publication.
Said Publisher further agrees that it will make all of such publications in
the manner and form required by law and that on the completion of publication it will
promptly file with the City Clerk an affidavit of publication as required by law.
Said advertising shall be in accordance with the following specifications'.
All advertisements shall be set in six- -point capitals, except that by
request of the officer authorizing the same such advertisement maybe set in such larger
type and with such spacing between lines as such officer may direct.
Title and sub heading shall be set in six -point type or in such larger type
as may be specified by the officer authorizing the advertisement.
In consideration of the faithful performance by the Publisher of the
agreements hereinabove set forth, the City hereby agrees to pay for said advertising and
publication at the following rates, to wit:
1
CC /AP FAIAIRRA/C C
Exhibit to
Agenda Item ##2 =A
Per column inch, 5.4 -point type
Price per column inch for insertion 4.90
The submission deadline for ads shall not exceed 4 days from date of
publication (excluding holiday periods).
The withdrawal. deadline for ads shall be up to 1 day from date of
publication (excluding holiday periods).
3. f AR
Publisher shall indemnify and hold harmless City, its City Council,
boards, commissions, officials, and employees "Indemnitees from and against any
and all loss, damages, liability, claims, suits, costs and expenses whatsoever, including
reasonable attorneys' fees ("Claims arising from or in any manner connected to
Publisher's negligent act or omission, whether alleged or actual, regarding performance
of services or work conducted or performed pursuant to this Agreement. If Claims are
filed against Indemnitees which allege negligence on behalf of the Publisher, Publisher
shall have no right of reimbursement against Indemnitees for the costs of defense even if
negligence is not found on the part of Publisher. However, Publisher shall not be
obligated to indemnify Indemnitees from.. Claims arising from the sole or active
negligence or willful misconduct of Indemnitees.
For those advertisements printed in conformity with copy submitted by
City, the City agrees to protect and indemnify the publisher against all liability, losses
and expenses arising from claims of libel, unfair competition and trade p ractices
infringement, property rights, and right of privacy and misrepresentation, except to the
extent of the cost of the advertisement.
4. COMPLIANCES:
Publisher shall comply with all State or federal laws and all ordinances,
rules and regulations enacted or issued by City.
5. NOTICES
All notices, demands, requests or approvals to be given under this
Agreement shall be given in writing and conclusively shall be deemed served when
delivered personally or on the second business day after the deposit thereof in the ~United.
States mail, postage prepaid, registered or certified, addressed as hereinafter provided.
All notices, demands, requests, or approvals from Publisher to City shall
be sent to the attention of the City Department requesting publication at the following
2
address:
City of Alameda
City Hall
2263 Santa Clara Avenue
Alameda, ACA 94501
All notices, demands, requests, or approvals from City to Publisher shall
be addressed to Publisher at:
Alameda Journal
1516 oak Street, I" Floor, Suite I
Alameda, 'CA 94501
6. WAIVER:
A waiver by City of any breach of any term., covenant, or condition herein
shall not be deemed to be a waiver or any subsequent breach of the same or an y other
term, covenant, or condition contained herein whether of the same or a different
character.
7. O
In the event Publisher hereto fails or refuses to perform any of the
provisions hereof at the time and in the manner required hereunder, Publisher shall be
deemed in default in the perfornlance of this Agreement. If such default is not cured
within a period of seven (7) days after receipt by Publisher from City of written notice of
default, specifying the nature of such default and the steps necessary to cure such
default, City may terminate the Agreement forthwith by giving to the Publisher written
notice thereof.
8. INTEGRATED CONTRACT:
This Agreement represents the full and complete understanding of eves
kind of nature whatsoever between the parties hereto and all preliminary negotiations
and agreements of whatsoever kind or nature are merged herein. No verbal agreement
or implied covenant shall be held to vary the provisions hereof. Any modification. of
this Agreement will be effective only by written execution signed by both City and
Publisher.
IN WITNESS WHEREOF, the parties hereto have caused this contract to be
executed, the day and year first above written, the City by its City Manager under
authority heretofore given by its City Council.
3
CITY of ALAMEDA, a municipal
corporation,
City Manager
Approved as to form
ity Attorney
ALA EDA JOURNAL
By,
CITY OF ALAM EDA
Memorandum
To: Honorable Mayor and
Members of the City Council
Honorable Chair and
Members of the Community Improvement Commission
Honorable Chair and
Members of the Alameda Reuse and Redevelopment Authority
From: Ann Marie Gallant
Interim City Manager /Interim Executive Director
Date: June 24, 2010
Re: Adopt Resolutions Approving Interim Expenditures Prior to Adoption of the
Operating and Capital Budget for FY10 -11
KAXS]KeJ:T0l11
Article xVI I of the City Charter requires adoption of an annual budget. In order to have
authorization for expenditure of funds until such adoption, it is necessary to have interim
authorization of essential expenditures of the City, the Community Improvement
Commission (CIC), and the Alameda Reuse and Redevelopment Authority (ARRA).
DISCUSSION
A final budget is scheduled to be presented for adoption at the July 27, 2010 joint
meeting of the City Council, CIC, and ARRA. The attached resolutions will authorize
recurrent spending authorization for payroll, materials and supplies, continuation of
capital improvement expenditures, and debt service during this interim period.
FINANCIAL IMPACT
The resolutions authorize payment of essential City obligations prior to adoption of the
FYI 0-11 budget.
CC /A►PFA/ARR /C C
Agenda Item #2 -B
t.
Honorable Ma and Members of the Cit Council June 24, 2010
Honorable Chair and Members of the CIC Pa 2 of 2
Honorable Chair and Members of the ARRA
RECOMMENDATION
Adopt resolutions approvin interim expenditures prior to adoption of the operatin and
capital bud for FY 0 -11.
0-11.
Respectfull submitted,
Lisa Goldman
Deput Cit Manager
CITY OF ALAMEDA RESOLUTION NO.
APPROVING INTERIM EXPENDITURES PRIOR TO ADOPTION OF THE
OPERATING BUDGET AND CAPITAL IMPROVEMENTS FOR FY09-1 0
WHEREAS State law re that the Cit of Alameda adopt an annual bud
representin a financial plan for conductin the affairs of the Cit of Al ameda for the
fiscal y ear be Jul 201 and endin June 30, 201 and
A-f
0
0 1� WHEREAS, there will be submitted to the Cit Council, at a future meetin the
Operatin Bud and Capital Improvements for FY1 0-11 and
WHEREAS, the proposed Operatin Bud and Capital Improvements for FY1 0-
11 includes several expenditures prior to the adoption of the Cit of Alameda Operatin
Bud and Capital Improvements,
NOW, THEREFORE, BE IT RESOLVED that the Cit Council of the Cit of
Alameda hereb approves interim expenditures of the Cit of Alameda prior to the
approval of the Cit of Alameda Operatin Bud and Capital Improve for FY10-
11 at the levels set b the Cit Operatin and Capital Improvement Bud for FY09-1 0
to allow pa of routine expenses includin pa and vendor expenses at prior
y ear's level.
1, the undersi hereb certif that the fore Resolution was dul and
re adopted and passed b the Council of the Cit of Alameda in a re
meetin assembled on the 24th da of June, 2010, b the followin vote to wit:
AYES
NOES:
ABSENT:
ABSTENTIONS:
IN WITNESS, WHEREOF, I have hereunto set m hand and affixed the seal of
said Cit this 25th da of June, 201
Lara Welsi Cit Clerk
Cit of Alameda
Resolution #2-113
06-24-10 Joint Meeting
ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY
RESOLUTION NO.
=gi p` APPROVING INTERIM EXPENDITURES PRIOR TO ADOPTION OF THE
OPERATING BUDGET AND CAPITAL IMPROVEMENTS FOR FY09 -10
WHEREAS, State lave requires that the Alameda Reuse and Redevelopment
Redevelo
�e p
Authority adopt an annual budget representing a financial plan for conducting the affairs
g p g
l
d
d R
R
d
Al
f th
c of Alameda Reuse aneeveo Redevelopment Authority for the fiscal year beginning
p y Y July
1, 2010 and ending June 30, 2011; and
A l WHEREAS, there will be submitted to the Alameda Reuse and Redevelopment
Authority, at a future meeting, the Operating Budget and Capital Improvements for
FY10 -11; and
WHEREAS, the proposed operating Budget and capital Improvements for FY10-
11 includes several expenditures prior to the adoption of the Alameda Reuse and
Redevelopment Authority Operating Budget and Capital Improvements.
NOW, THEREFORE, BE IT RESOLVED that the Alameda Reuse and
Redevelopment Authority hereby approves interim expenditures of the Alameda Reuse
and Redevelopment Authority prior to the approval of the Operating Budget and Capital
Improvements for FY10 -11 at the levels set by the City Operating nd Capital
g p
Improvement Budget for FY09 -10 to alloy payment of routine expenses including
payroll and vendor expenses at prior year's level.
1, the undersigned, hereby certify that the foregoing Resolution was duly and
regularly adopted and passed by the Governing Board of the Alameda Reuse and
Redevelopment Authority in regular meeting assembled on the 24th day of June, 2010,
by the following vote to quit:
AYES:
MOTM
UI 6"10 III
ABSTENTION
IN .WITNESS, WHEREOF, I have hereunto set nay hand and affixed the official
seal of the said Authority this 25th day of June, 2010.
I rma Glidden, Secretary
Alameda Reuse and Redevelopment Authority
Resolution #2 -B
06 -24 -10 Joint Meeting
COMMUNITY IMPROVEMENT COMMISSION
OF THE CITY OF ALAMEDA RESOLUTION NO.
APPROVING INTERIM EXPENDITURES PRIOR TO ADOPTION OF THE
OPERATING BUDGET AND CAPITAL IMPROVEMENTS FOR FY10 -11
a WHEREAS, state lave requires that the Community Improvement commission of
the City of Alameda adopt an annual budget representing a financial plan for conducting
R the affairs of the Community Improvement Commission for the fiscal year beginning July
1, 2010 and ending June 30, 2011; and
3
WHEREAS, there will be submitted to the Community Improvement Commission,
at a future meeting, the operating Budget and capital Improvements for FY10 -11; and
WHEREAS, the proposed operating Budget and Capital Improvements for FY10-
11 includes several expenditures prior to the adoption of the Community Improvement
Commission operating Budget and Capital Improvements;
NOW, THEREFORE, BE IT RESOLVED that the Community Improvement
Commission of the city of Alameda hereby approves interim expenditures of the
Community Improvement commission prior to the approval of the community
Improvement Commission Operating Budget and capital Improvements for FY10 -11 at
the levels set by the city operating and capital Improvement Budget for FY09 -10 to
allow payment of routine expenses including payroll and vendor expenses at prior
years level.
Resolution #2-13
06 -24 -10 Joint Meeting
I, the undersigned, hereby certify that the foregoing Resolution was duly and
regularly adopted and passed by the community Improvement Commission of the city
of Alameda in a Special Community Improvement commission meeting assembled on
the24th day of June, 2010, by the following vote to wit.
AYES:
NOES:
ABSENT:
ABSTENTIONS:
IN WITNESS, WHEREOF, I have hereunto set nay hand and affixed the official
seal of said Commission this 25th day of June, 2010.
Lara Weisiger, Secretary
Community Improvement Commission
Beverly Johnson, chair
Community Improvement Commission
CITY OF A
Memorandum
To: Honorable Mayor and
Members of the city council
From: Ann Marie Gallant
Interim city Manager
Date: June 24, 2010
Re: Adopt the Resolution of the city council Approving Revised Documents
Related to the Issuance of Refunding Bonds for the city's Community
Facilities District No. 1 (Harbor Bay) and marina Tillage Assessment
District 89 -1 and Authorizing Actions in connection Therewith
BACKGROUND
On June 15, 2010, the city council adopted Resolution No. 14459 (Prior Resolution)
authorizing the issuance of two series of refunding bonds and the sale of those bonds to
the Alameda Public Financing Authority (APFA) in order to provide funds to refund the
City of Alameda Community Facilities District No. 1 (Harbor Bay) 1996 Special Tax
Refunding Bonds and the Limited obligation Improvement Bonds, city of Alameda,
Marina Village Assessment District 89 -1, Series 89 -1. The refunding of the two series of
City bonds will result in lower future special tax levies on homeowners in the Comm unity
Facilities District No. 1 (Harbor Bay) (CFD) and lower future assessment levies .on
properties in the Marina Village Assessment District 89 -1 (AD). The Prior Resolution
also approved the sale by the APFA of bonds (Bonds), the proceeds of which are to be
used to purchase the city bond issues, and the Prior Resolution approved certain
documents related thereto including a Preliminary official Statement describing the
Bonds, the CFD and the AD.
DISCUSSION
Subsequent to the adoption of the Prior Resolution, the Authority was advised by
Standard Poor's ratings Service that it may provide a credit rating for the Bonds that
was lover than the credit rating that Fitch Ratings had indicated that it expected to
assign to the Bonds. In response to the expected ratings for the Bonds, and in order to
obtain the most favorable credit ratings for the Bonds resulting in lower interest rates for
the Bonds, city staff and the co- financial advisors to the APFA have determined that it
is necessary to revise the documents for the Bonds to allow for two series of the Bonds
to be issued by the APFA, a senior series and a subordinate series.
CC /AP PA/ARRA/C C
Agenda Item #2 -C
Honorable Mayor and June 24, 2010
Members of the city council Page 2 of 2
The aggregate principal of the two series of the Bonds will not exceed the principal of
the Bonds to be issued by the APFA as contemplated by the Prior Resolution. By
issuing the Bonds in two series, however, it is expected that better ratings may be
obtained for a portion of Bonds such that the combined interest rates on the two series
of the APFA Bonds will be lower than the interest rates on the APFA Bonds if they were
sold in one series. Louver interest rates will result in lower future special tax levies on
homeowners in the CFD and lower future assessment payments by property owners in
the AD. A new target date for bond closing is July 22, 2010. This should allow the city
sufficient time to secure the reduced special tax payments and assessment levies on
the August 2nd tax rolls in order to provide tax reductions to propert y owners in FY10 -11.
A revised draft of the Preliminary Official Statement for the Bonds is on file in the City
Clerk's office.
FINANCIAL IMPACT
Issuance of the APFA Bonds would provide substantial savings to the property owners
in the CFD and the AD. Depending upon lot size, homeowners can expect annual
property tax savings between $400 -$700. Total annual tax savings for business owners
in the AD will be approximately $803,000 per year. The city will be reimbursed from
Bond proceeds for its administrative costs incurred during the structuring and issuance
of the Bonds. A sources and use of funds (Exhibit 1) and estimated refunding savings
(Exhibit 2) provide a summary of the pertinent financial detail on this transaction.
RECOMMENDATION
Adopt the Resolution approving a revised Preliminary official Statement for the APFA
Bonds and approving the sale of the APFA Bonds in two series, as described in the
Preliminary official Statement.
Respectfully submitted,
Ann Marie allant
Interim Cit onager
Exhibits:
1. Sources and Uses of Funds
2. Estimated Savings
6/21 /2010
SOURCES AND USES OF FUNDS
Sources
Par Amount
Prior Reserve Fund (1)
Prior Bond Fund Monies Deposited to Escrow
Marina Village AD Improvement Fund (1)
Par .Amount of Series 2010A Bonds Senior
OIP (OID) Series 2010A Bonds Senior
Par Amount of Subordinate Series 2010E Bonds
OIP (OID) Subordinate Series 2010B Bonds
Total Sources of Funds
Alameda PFA Harbor Bay CFD Marina Village AD
$10 $9
1. ,772,01 0.80 3,639,281.97
1 ,716,427.00 41 743,395.31
2
$10,660,000.00
0.00
9,000,000.00
fN n„
19,660,000.0U 14 $20
Uses
Deposit to Escrow
$12,752,535.00 (2)
$14,243,902.50 (3)
Deposit to 2010 Reserve Fund (4)
1,066,000.00
2,826,617.68
Deposit to Bond Fund (5)
56,427.74
471
Marina Village AD Improvement Fund
2,726,830.00
Purchase .Local Obligations:
Harbor Bay CFD Special Tax Bonds
$10,66000.00
Less: Discount to Purchase Price
(273,475.06)
273,475.06
/Marina Village AD Improvement Bonds
9
Less: Discount to Purchase Price
(265,157.10)
265
Subtotal Local Obligations
$19,121,367.84
Deposit to Cost of Issuance Fund
440
Allowance for Underwriter's Discount (6)
98,300.00
Total Uses of Funds
$19,660,000.00
$14
$20
Costs of Issuance Detail
Total
CFD
AD
City's Issuance Fee
$35
$18
$16,022.38
Bond /Disclosure Counsel Q T
120,000.00
65,066.12
54,933.88
Financial Advisor Sequoia WCH
192,500.00
104
88,123.09
Reassessment Engineering NBS
19,500.00
0.00
19
Printing O.S.
8,348.00
4,526.43
3,821.57
Trustee
21 3 500.00
1,355.54
1,144.46
Trustee's Counsel
2
1,355.54
1,144.46
Escrow Agent
2,500.00
1
1
CUSIP
552.00
299.30
252.70
Debt Statement
900.00
488.00
412.00
Rating Fee S&P
30 1
16,266.53
13,733.47
Rating Fee Fitch
2600.00
14
11 ,902.34
Contingency
32.16
32.16
0.00
Total Costs of Issuance
$440
$228
$212
(I) Source: City of Alameda.
(2) Escrow pays debt service due 811!10 on Authority's 1996 Series A Bonds. Assumes cash funded escrow.
(3) Escrow pays debt service due 912110 on Authority's 1999 Bonds. Assumes cash funded escrow.
(4) For Harbor Bay CFD, the Reserve Requirement equals 10% of the principal amount of the Local Obligation.
For /Marina Village AD, the Reserve Requirement is 31.41 an amount that togcther with CIC money will cover
a 2 --year extended delinquency of the top 3 taxpayers.
(5) Amount at least sufficient to pay debt service on the PFA Bonds due 9/2110.
(6) Equals 0.5% of the Bond amount. CC /APF ARRA /C C
Prepared by Westhoff, Cone Holmstedt 1 Exhibit I to
Agenda Item #2 -C
06 -24 -1
6/21/2010
City of Alameda
(Harbor Bay CFD and Marina Village AD)
Harbor day C°F"D
Estimated
Annual
2010 -11 Levy Savings
$1,900 $2,500 $417
$2,501 $3 $537
$301 $3,500 $644
$3 $4 $761
Average Savings $617
Marina Village AD
Estimated
Annual
Owner
Savings
Legacy Partners I Alameda LLC
$436
SRM Marina Investors LLC
92
Legacy Partners I Alameda II LLC
39,617
Victoria Marina LLC
'27
Albertsons
25,841
Oakland Yacht Club
16
Long's Drugs (Joseph Moore Trust)
16,457
Wind River Systems Inc.
11
Pacific Marina Hospitality Inc.
10
Siska, Robert J.
10
Subtotal Top Ten $686
Other Property Owners $37,318
TOTAL $724,042
Prepared by Westhoff, Cone Holmstedt
Exhibit 2 to
2
Agenda Item -C
06 -o24 =1 0
CITY OF ALAMEDA RESOLUTION NO.
E
0
0
APPROVING REVISED DOCUMENTS RELATED TO THE ISSUANCE
OF REFUNDING BONDS FOR THE CITY'S COMMUNITY FACILITIES
DISTRICT NO. 1 (HARBOR BAY) AND MARINA VILLAGE
ASSESSMENT DISTRICT 89 -1, AND AUTHORIZING ACTIONS IN
CONNECTION THEREWITH
s
WHEREAS, on June 15, 2010 the City Council of the City of Alameda
V �t s s (the y) adopted Resolution No. 14459 (the Prior Resolution) authorizing
the issuance of two series of refunding bonds (the "Local obligations and the
sale of the Local obligations to the Alameda Public Financing Authority g y(the
F
"Authority") in order to provide funds to refund the outstan y p ding City of Alameda
Community Facilities District No. 1 (Harbor Bay) 1996 Special Tax Refunding
Bonds (the "Prior CFD Bonds and the outstanding Limited obligation
Improvement Bonds City of Alameda, Farina Village Assessment District 89 -1,
Series 89 -1 (the "Prior Assessment Bonds resulting in lower future special tax
levies on homeowners in the City's Community Facilities District No. 1 (Harbor
Bay) (the "CFD and lower future assessment levies on properties in the City's
Marina Village Assessment District 89 1 (the "Assessment District and
WHEREAS, the Prior Resolution also approved the safe by the Authority
of bonds of the Authority (the "Authority Bonds the proceeds of which are to
be used to purchase the Local obligations, and certain documents related
thereto including a Preliminary official Statement describing the Authority
Bonds, the Local obligations, the CFD and the Assessment District; and
WHEREAS, in order to obtain the most favorable credit ratings for the
Authority Bonds resulting in lower interest rates for the Authority Bonds and the
Local obligations, City Staff and the co- financial advisors to the Authority for
the Authority Bonds have determined that it is necessary to revise the
Preliminary official Statement to allow for two series of the Authority Bonds to
be issued, a senior series and a subordinate series; and
WHEREAS, there is on file with the City Clerk a revised draft of the
Preliminary official Statement, and the City Council now desires to approve the
revised Preliminary official Statement and to authorize the sale of the Authority
Bonds in two series as describe therein, so that the Authority Bonds may be
sold and issued at the lowest possible interest cost, and thereby the Local
Obligations maybe issued at the lowest possible interest cost.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF ALAMEDA as follows:
Section 1. The revised Preliminary official Statement for the Authority
Bonds, in the form on file with the City Clerk, is hereby approved and the
revised Preliminary official Statement is hereby authorized to be distributed to
Resolution #2 -C
06 -24 -10 Joint Meeting
prospective purchasers of the Authority Bonds in the form hereby approved,
together with such additions thereto and changes therein as are determined
necessary or desirable by the City Manager, upon consultation with Disclosure
Counsel and the City Attorney, to make the revised Preliminary official
Statement final as of its date for purposes of Rule 15c2-12 of the securities
and Exchange Commission. The City Manager is hereby authorized to execute
a final official Statement in the form of the revised Preliminary official
Statement, together with such changes as are determined necessary by the
City Manager, upon consultation with Disclosure Counsel and the City Attorney,
to make such official statement complete and accurate as of its date. The
distribution of the final official statement for the Authority Bonds and any
supplement thereto to the purchasers of the Authority Bonds is hereby
authorized.
Section 2. The sale of the Authority Bonds in two series, as described In
the revised Preliminary official statement, is hereby approved.
Section 3. References to the "Purchase Contract" in section 6 of the
Prior Resolution are hereby deleted.
Section 4. Except for the approval of the revised Preliminary official
Statement, the approval of the sale of the Authority Bonds in two series as
contemplated by the revised Preliminary official statement, and the deletion of
references to the Purchase Contract in the Prior Resolution, as provided for in
Section 1, 2 and 3 above, the terms and provisions of the Prior Resolution are
hereby affirmed.
Section 5. The Mayor, City Manager, City Clerk and Treasurer of the
City and any other officers or staff of the City are hereby authorized and
directed to take any actions and execute and deliver any and all documents as
are necessary to accomplish the issuance, sale and delivery of the Local
Obligations and the Authority Bonds and the refunding of the Prior CFD Bonds
and the Prior Assessment Bonds in accordance with the provisions of the Prior
Resolution and this Resolution, and the fulfillment of the purposes of the Local
Obligations as described in the Prior Resolution and the revised Preliminary
Official Statement.
Section G. This Resolution shall take effect upon its adoption by this City
Council.
I, the undersigned, hereby certify that the foregoing Resolution was duly
and regularly adopted and passed by the Council of the City of Alameda in a
regular meeting assembled on the 24th day of June, 2010, by the following vote
to wit:
AYES
NOBS:
ABSENT:
ABSTENTIONS:
IN WITNESS, WHEREOF, I have hereunto set nay hand and affixed the
seal of said City this 25th day of June, 201 OK
L.ara Weisiger, City Clerk
City of Alameda
CITE' OF AL.AM EDA
Memorandum
To. Honorable Chair and the
Members of the Alameda Public Financing Authority Board
From: Ann Marie Gallant
Interim Executive Director
Date: June 24, 2010
Re: Adopt the Resolution of the Board of Directors of the Alameda Public
Financing Authority Approving Revised Documents Related to Local
Agency Refunding Revenue Bonds (Harbor Bay CFD and Marina village
AD and Authorizing Actions in Connection Therewith
On June 15, 2010, the Board of Directors of the Alameda Public Financing Authority
(APFA) adopted Resolution No. 10 -20 (Prior Resolution) authorizing the sale and
issuance of bonds of the Authority (Bonds), the proceeds of which are to be used to
purchase two series of bonds of the City of Alameda and thereby provide funds to
refund the City of Alameda Community Facilities District No. 1 (Harbor Bay) 1996
Special Tax Refunding Bonds and the Limited obligation Improvement Bonds, City of
Alameda, Marina Village Assessment District 89 -1. The refunding .of the two series of
the City's bonds will result in lower future special tax levies on homeowners in the
Community Facilities District No. 1 (Harbor Bay) (CFD) and lower future assessment
levies on properties in the Marina village Assessment District 89 -1 (AD). The Prior
Resolution approved various documents related to the sale and issuance of the Bonds,
including an Indenture of Trust, a Notice of Intention to Sell Bonds, an official Notice of
Sale and a Preliminary official Statement (Bond Documents).
DISCUSSION
Subsequent to the adoption of the Prior Resolution, the Authority was advised by
Standard Poor's Ratings Service that it may provide a credit rating for the Bonds that
was lower than the credit rating that Fitch Ratings had indicated that it expected to
assign to the Bonds. In response to the expected ratings for the Bonds, and in order to
obtain the most favorable credit ratings for the Bonds resulting in lower interest rates for
the Bonds, City staff and the co- financial advisors to the APFA for the Bonds have
determined that it is necessary to revise the Bond Documents to allow for two series of
the Bonds to be issued, a senior series and a subordinate series.
CC /AP FA/ARRAIC C
Agenda Item ##2-C
Honorable chair and June 24, 2010
Members of the APFA Board Page 2 of 3
The aggregate principal of the two series of the Bonds will not exceed the principal of
the Bonds authorized to be issued pursuant to the Prior Resolution. By issuing the
Bonds in two series, however, it is expected that better ratings may be obtained for a
portion of Bonds such that the combined interest rates on the two series of the Bonds
will be lower than the interest rates on the Bonds if they were sold in one series. Lower
interest rates will result in lower future special tax levies on homeowners in the CFD and
lower future assessment payments by property owners in the AD. A new target date for
bond closing is July 22, 2010. This should allow the city sufficient time to secure the
reduced special tax payments and assessment levies on the August 2nd tax rolls in
order to provide tax reductions to property owners in FY10 -11.
Revised drafts of the Bond Documents are on file in the city clerk's office and include:
an Indenture of Trust for the Bonds; a Revised Notice of Intention to Sell Bonds, a
Revised official Notice of sale and a revised Preliminary official Statement relating to
the sale of the Bonds.
The Prior Resolution approved the firm of sequoia Financial croup LLC as a financial
advisor to APFA for the Bonds. The Prior Resolution inadvertently failed to also
approve the firm of Westhoff, cone hol rstedt as a co- financial advisor to the APFA
for the Bonds. The proposed Resolution corrects the oversight by appointing both firms
as co- financial advisors for the Bonds.
Except for approving the revised Bond Documents and correcting the appointment of
the co- financial advisors for the Bonds, the proposed Resolution affirms the Prior
Resolution. In the Resolution, the APFA Board specifically affirms its direction in the
Prior Resolution to the effect that no award of the Bonds or sale of the Bonds shall
occur unless the present value savings of the debt service on the Bonds is at least six
percent (6 when compared to the remaining scheduled aggregate debt service on the
CFD bonds and the AD bonds to be refunded.
FINANCIAL IMPACT
Issuance of the Bonds would provide substantial savings to the property owners in the
CFD and in the AD. Depending upon lot size, homeowners can expect annual property
tax savings between $400- $700. Total annual tax savings for business owners in the
AD will be approximately $803,000 per year. The City will be reimbursed from Bond
proceeds for its administrative costs incurred during the structuring and issuance of the
Bonds. A sources and use of funds (Exhibit 1) and estimated refunding savings (Exhibit
2) provide a summary of the pertinent financial detail on this transaction.
Honorable Chair and
Members of the APFA Board
RECOMMENDATION
June 24, 2010
Pa 3 of 3
Adopt the Resolution approvin revised documents and authorizin actions in
connection therewith.
Respectfull submitted,
Ann Mari allant
Interim E e utive Director
Exhibits:
1 Sources and Uses of Funds
2. Estimated Savings
6/2 12
SOURCES AND USES OF FUNDS
Sourees
Par .Amount
Prior Reserve Fund (1)
Prior Bond Fund Monies Deposited to Escrow
Marina Village AD Improvement Fund (1)
Par Amount of Series 201 OA Bonds Senior
OIP (01D) Series 2010A Bonds Senior
Par Amount of Subordinate Series 2010B Bonds
OIP (OID) Subordinate Series 2010E Bonds
Total Sources of Funds
Alameda PFA .Harbor Bay CFD Marina Village AD
2010 Refundina '�Pripc In (I ')III n
1 0, 660 1 000.00 $9,000,000.00
1 3,639,281.97
l ,71 6 4
21
$10,660,000.00
0.00
9
A nn
l 9,660,000.00 $14J48 $20,109,507.28
Uses
Deposit to Escrow
$12,752,535.00 (2)
$14,243,902.50 (3)
Deposit to 2010 Reserve Fund (4)
1 ,066,000.00
2,826,6 17.68
Deposit to Bond Fund (5)
56,427.74
47,000.00
Marina Village AD Improvement Fund
2,7261830.00
Pin -chase Local Obligations:
Harbor Bay CFD Special Tax Bonds
$113
Less: Discount to Purchase Price
(273,475.06)
273,475.06
Marina Village AD Improvement Bonds
900,000.00
Less: Discount to Purchase Price;
(265,157.10)
265,157.10
Subtotal Local Obligations
$19,121 ,367.84
Deposit to Cost of Issuance Fund
440
Allowance for Underwriter's Discount (6)
98,300.00
Total Uses of Funds
$1 900,000.00
$14,148
$20,109,507.28
Costs of Issumice Detrril
Total
CFD
AD
City's Issuance Fee
$351000.00
$18,977.62
$16,022.38
Bond :Disclosure Counsel Q T
120,000.00
65,066.12
54
Financial Advisor Sequoia WCH
1. 92,500-00
104,376.91
88023.09
Reassessment Engineering NBS
19
0.00
19
Printing O.S.
8,348.00
4,526.43
3,821.57
Trustee
2,500.00
1
1
Trustee's Counsel
2,500.00
1,355.54
1,144.46
Escrow Agent
2,500.00
1
1
CUSIP
552.00
299.30
252.70
Debt Statement
900.00
488.00
412.00
Rating Fee S&P
30,000.00
16
1 3,733.47
Rating Fee Fitch
26,000,00
14,097.66
11 ,902.34
Contingency
32.16
32.16
0.00
Total Costs of Issuance
$440,332.16
$228,197.35
$212
1) Source: City of Alameda.
(2) Escrow pays debt service due 811/- 10 on Authority's 1996 Series A Bonds. Assumes cash- funded escrow.
(3) Escrow pays debt service due 9/2110 on Authodty's 1999 Bonds. Assumes cash funded escrow.
(4) For Harbor Bay CFD, the Reserve Requirement equals 10% of the prine1pal arn oLint o the Local Obligati
For Marina Vi11age AD, the Reserve Requirement is 31.41 an arnoitnt that together witli CIC money will cover
a 2 -year extended delinquency of the tap 3 taxpayers.
(5) Amount at least sufficient to pay debt service on the PFA Bonds due 9/2/10.
(6) Equals 0.5% of the Bond aniount- CiC /AP F ARR Cv I C
Prepared by Westhoff, Cone Holmstedt 1 Exhibit I t®
Agenda Item ##2
06-24-10
6/21/2010
City of Alameda
(Harbor Bay CFD and Marina Village AD)
Harbor Bay CFD
Average Savings $617
Martina Village AD
Estimated
Annual
Owner Savings
Legacy Partners 1 Alameda LLC
Estimated
SRM Marina Investors LLC
Annual
2010 -11 Lehr
Savings
$1 ,900 $2,500
$417
$2,501 $300
$537
$301 $3
$644
$3,501 $4,100
$761
Average Savings $617
Martina Village AD
Estimated
Annual
Owner Savings
Legacy Partners 1 Alameda LLC
$436,014
SRM Marina Investors LLC
92,647
Legacy Partners t Alameda 11 LLC
39,617
Victoria Marina LLC
27,323
Albertsons
25
Oakland Yacht Club
16,555
Long's Drugs (Joseph Moore Trust)
16,457
Wind River Systems Inc.
11,397
Pacific Marina Hospitality Inc.
10,836
Siska, Robert J.
10,036
Subtotal Top Ten $686,725
Other Property Owners $37,318
TOTAL $724,042
CC /APFAIAR C1
Prepared by Westhoff, Cone Holnnstedt 2 Exhibit 2 to
Agenda item #2 -Ci
06-24-10
ALAMEDA PUBLIC FINANCING AUTHORITY RESOLUTION No.
APPROVING REVISED DOCUMENTS RELATED To LOCAL
AGENCY REFUNDING REVENUE BONDS (HARBOR BAY CFD
AND MARINA TILLAGE AD), AND AUTHORIZING ACTIONS IN
CONNECTION THEREWITH
WHEREAS on June 1� 2010 the Board of Directors of
the Alameda
Public Financing Authority (the
"Authority") adopted Resolution No. 10 -0 (the
y p
"Prior Resolution" authorizing
B
the sale and issuance of bonds of the Authority
INA (t "Bo nds the proceeds of which are to be used to purchase two series of
bonds (the Local Local obligations of the city of Alameda (the "city and thereby
provide funds to refund the outstanding city of Alameda Community Facilities
District No. 1 (Harbor Bay) 1 996 Special Tax Refundin g Bonds (the "Prior CFD
Bonds and the outstanding Limited obligation Improvement Bonds, Cit y of
Alameda, Marina Tillage Assessment District 89 -1, Series 89 -1 (the "Prior
Assessment Bonds resulting in lower future special tax levies on
homeowners in the City's Community Facilities District No. 1 (Harbor Bay) and
lower future assessment levies on properties in the city's Marina Village
g
Assessment District 89 -1; and
WHEREAS, the Prior Resolution approved and authorized the execution
and delivery of various documents related to the sale and issuance of the
Bonds, including an Indenture, a Notice of Intention, an official Notice of Sale
and a Preliminary official Statement (collectively, the "Bond Documents and
WHEREAS, in order to obtain the most favorable credit ratings for the
Bonds resulting in louver interest rates for the Bonds, City Staff and the co-
financial advisors to the Authority for the Bonds have determined that it is
necessary to revise the Bond Documents. to allow for two series of the Bonds to
be issued, a senior series and a subordinate series; and
WHEREAS, there are on file with the Secretary of the Authority revised
drafts of Bond Documents, and the Board of Directors now desires to approve
the revised Bond Documents and to authorize their execution and delivery so
that the Bonds may be sold and issued at the lowest possible cost to the
Authority.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF
DIRECTORS OF THE ALAI't1'lEDA PUBLIC FINANCING AUTHORITY as
follows:
Section 1. The Indenture, the Notice of Intention and the official
Notice of Sale, in the respective forms on file with the Secretary (collectively,
the "Revised Bond Documents are hereby approved and the Executive
Director is hereby authorized and directed to execute the Revised Bond
Documents in the forms hereby approved, with such additions therein and
Resolution #2-C
06-24-10 Joint Meeting
changes thereto as the Executive Director, upon consultation with the city
Attorney and Bond counsel, deems necessary or desirable, with such approval
to be conclusively evidenced by the execution and delivery of the Revised Bond
Documents by the Authority.
Section 2. The revised Preliminary official statement for the Bonds, in
the form on file with the secretary, is hereby approved and distribution of the
revised Preliminary official statement to prospective purchasers of the Bonds
in such form, together with such additions thereto and changes therein as are
determined necessary or desirable by the Executive Director. of the Authority,
upon consultation with the city Attorney and Disclosure Counsel, to make such
Preliminary official statement final as of its date for purposes .of Rule 15c2 -12
of the securities and Exchange Commission, is hereby authorized. The
Executive Director of the Authority is hereby authorized to execute a final
Official statement in the form of the revised Preliminary official. Statement,
together with such changes as are determined necessary by the Executive
Director, upon consultation with the. City Attorney. and. Disclosure counsel, to
make the official Statement complete and accurate as of. its date. The
distribution of the final Official statement for the Bends and any. supplement
thereto to the purchasers of the Bonds following its execution by the Authority is
hereby authorized.
Section 3. section 10 of the Prior Resolution is hereby amended and
restated to read as follows: "The firms of Sequoia Financial Group LLC and
Westhoff, cone Holrnstedt are hereby designated as Co- Financial. Advisors
to the Authority with respect to the Authority Bonds. The Executive Director is
hereby authorized to enter into agreements with .said firms for its. services as
Co- Financial Advisors, said agreements to be in a form acceptable to the
Executive Director and the city Attorney."
Section 4. Except for the approval of the Revised Bond Documents,
the approval of the revised Preliminary official Statement, and the .amendment
and restatement of section 10 of the Prior Resolution, as provided for in
Sections 1, 2 and 3 above, the terms and provisions .of the Prior Resolution are
hereby affirmed. The Board of Directors hereby specifically affirms its direction
in the Prior Resolution to the effect that no award of the Bonds or sale of the
Bonds shall occur unless the present value savings of the debt service on the
Bonds is at least six percent (6 when compared to the remaining scheduled
aggregate debt service on the Prior CFD Bonds and the Prior Assessment
Bonds.
Section 5. The Chair, Mice Chair, secretary, Executive Director and
Treasurer of the Authority and any other officers or staff of the Authority are
hereby authorized and directed to take any actions and execute and deliver any
and all documents as are necessary to accomplish the issuance, sale and
delivery of the Bonds, the purchase of the 2010 CFD Bonds and the 2010
Reassessment Bonds (as such terms are defined in the Prior Resolution) with
proceeds of the Bonds, and the refunding and defeasance of the 1995 Bonds
-2-
and the 1999 Bonds (as such terms are defined in the Prior Resolution) in
accordance with the documents approved by this Resolution. In the event that
the Executive Director of the Authority is unavailable to sign any document
authorized for execution herein or in the Prior Resolution, the written designee
of the Executive Director may sign such document.
Section 6. This Resolution shall take effect upon its adoption by the
Board of Directors.
I, the undersigned Secretary of the Alameda Public Financing Authority,
hereby certify that the foregoing is a full, true and correct copy of a resolution
duly adopted by the Board of Directors of the Authority at a special meeting
thereof on the 24 day of June, 2010, by the following vote of the members
thereof:
AYES:
NOBS:
ABSTAIN:
ABSENT:
IN WITNESS, WHEREOF, I have hereunto set nay hand and
affixed the official seal of said Authority this 25 day of June, 2010.
Secretary
Alameda Public Financing
Authority
CITY of ALA VIEDA
Memorandum
To: Honorable Mayor and
Members of the City Council
From: Ann Marie Gallant
Interim City Manager
Date: J u ne 24, 2010
Re: Impact of Redevelopment Upon Alameda Unified School District
The City Council requested a briefing regarding the relationship between the
Community Improvement Commission (CIC) and the Alameda Unified .School District
(AUSD) and the financial impact of redevelopment upon the AUSD. Provided with this
report is an analysis of the tax sharing and AUSD pass through requirements .as well. as
the requirements for pass through to 12 other county tax sharing agencies. In addition,
information is included regarding State school funding and the mechanics of this funding
as a relationship to local tax revenue participation.
The attached analyses demonstrate: 1) AUSD receives the same amount of money .far
their operations with or without the CIC. AUSD receives 00% of their operating dollars
from the State. AUSD's funding level for operations is set by State formula .and is not
the result of local tax revenue. 2) If the CIC ceased to exist, AUSD would not receive
any additional money for operations. Even if the State suspended Proposition 98's
school funding guarantees, AUSD would still receive the same amount of money, with
or without the CIC, because the State formula for assistance does not disappear, only
the State commitment to funding level changes.
AUSD has benefited from the existence of and collaboration with the CIC. Prior to 1994
and AB 1290, which now prohibits individual fiscal agreements, the CIC and AUSD
negotiated annual support for AUSD, over and above what AUSD would have received
without the CIC, in the following forms:
Capital $290,000 (current year); $1.8 Million (over past ten years)
Housing $480,000 (current year); $3 Million (over past ten years)
In addition, collaboration led to the successful development of Ruby Bridges School.
The CIC:
Donated seven acres of "cleaned" land, served by new utilities and
infrastructure, for the school site (in -lieu of District public benefit conveyance
request to Davy
CM Communication
Agenda item #3 -A
Honorable Mayor and
Members of the city council
June 24, 2010
Wage 2 of 2
Redeveloped Ruby Bridges Park and Community Center as a joint use facility to
serve as open space and after school program area for the school (CIC cost
$2.9 Million
Implemented the Bayport project, which generated CIC cash contribution and
developer impact fees of $4.6 Million for construction.
In addition, the City and CIC continue to look for projects and programs of mutual
interest, with future opportunities, particularly at Alameda Point, of major focus.
Respectfully submitted,
Ann Mari Gallant
Interim C t Manager
AMGILAL:dc
Attachment
COUNCIL REFERRAL FORM
Name of Councilmember requesting referral: Mg or Johnson
Date of submission to City Clerk (must be submitted before 6 :00 p.m. on the
Monday before the Council meeting requested): Junes 2010
Council fleeting date: June 24 01 o
Brief description of the subject to be printed on the agenda, sufficient to inform
the City Council and public of the nature of the referral:
On June 15, the City Council discussed the proposed campaign finance reform
ordinance. At that meeting, the Council voted 3 -2 to send the ordinance to the
Sunshine Task Force for discussion, rather than passing it that night.
Early in the morning of June 16, the Chair of the Sunshine Task Force, Gretchen
Lipow, sent an email sharing her dismay that the Council chose to send the
ordinance to the Sunshine Task Force for review rather than passing it that
evening. Chair Lipow noted that Jon Spangler, a member of the public who
spoke in favor of referring the ordinance to the Sunshine Task Force,
misrepresented Chair Lipow's position on this matter. She does not believe that
the Sunshine Task Force is the proper venue to discuss this complicated issue
and noted that she was prepared to step down from the Task Force over this
issue.
Given Ms. Lipow's comments, and the fact that Mr. Spangler misrepresented her
views on this matter, I ask that the City Council reconsider its action to refer the
matter to the Sunshine Task Force. The Council needs to take responsibility for
this matter and bring it back on July 6 for Council action.
6 51