1999-08-17 APFA minutesMINUTES OF THE SPECIAL ALAMEDA PUBLIC FINANCING AUTHORITY MEETING
TUESDAY- -AUGUST 17, 1999--7:25 P.M.
Chair Appezzato convened the Special Meeting at 8:05 p.m. Board
Member Daysog led the pledge of allegiance.
MINUTES
(99-04) Minutes of the Annual Alameda Public Financing Authority
Meeting of March 16, 1999. Approved.
Board Member DeWitt moved approval of the Minutes.
Vice Chair Daysog seconded the motion, which carried by unanimous
voice vote - S.
AGENDA ITEM
(99-05) Resolution No. 99-7, "Authorizing the Issuance and Sale
of a Series of Revenue Bonds in the Maximum Aggregate Principal
Amount of $10,000,000 to Finance the Acquisition, Construction,
Installation and Equipping of Various Capital Improvements to
Alameda Point (the Former Alameda Naval Air Station) and to Finance
the Acquisition, Construction, Installation and Equipping of
Various Capital Improvements for the City of Alameda and Approving
Related Documents and Official Actions." Adopted.
Board Member Kerr stated the City would have to use financing even
if the City had title to the property today; [Capital Improvement
Projects] list provided by staff has projects which are above and
beyond the Maintenance Agreement; inquired whether the City should
borrow money to complete projects, e.g. $3 Million for Tinker
Avenue, $1.5 Million for Atlantic Avenue, before it has title to
the property; stated the City is starting negotiations for
conveyance of the [former Navy] Base; that she approves use of
revenue bonds to meet obligations under the Maintenance Agreement;
inquired whether the City can prioritize expenses to not spend
money on property which it does not own; and whether there would be
penalties for early payment if the City decides to return the money
in the event title is not conveyed.
The Deputy City Manager stated staff would not propose to spend
special meeting
Alameda Public Financing Authority
August 17, 1999
dollars on Capital Improvements during the first fiscal year, until
negotiations proceed and staff is fairly confident that the
transaction [property transfer] will occur; the Plan presented is
a five -year Financing Plan; the first priority is City -wide Capital
Improvement Projects which are already in the [City's] budget.
In response to Board Member Kerr's inquiry regarding heavy duty
capital expenditures, which would only be necessary if the City
received title, the Deputy City Manager stated staff would not
recommend approval of said projects unless title was transferred or
the City was fairly confident the transaction would occur; the
current negotiation schedule with the Navy is to consummate by the
end of the Calendar year; issuing bonds for small amounts and
returning with request for more financing in six to eight months,
did not seem efficient.
The Deputy City Manager further stated Bond Counsel confirmed there
is no penalty for early payment.
Board Member Kerr requested confirmation that bond money could be
returned without penalty, if City had to do an exit strategy.
The Deputy City Manager responded in the affirmative; stated the
only loss to the City would be issuance costs.
Vice Chair Daysog stated the City is making investments in a
property which the City does not own; however, there is some
certainty that the City will own the property; the City should
start acting as though it owns the property.
Vice Chair Daysog moved adoption of the Resolution.
Board Member Johnson seconded the motion which carried by unanimous
voice vote - 5.
ORAL COMMUNICATIONS NON - AGENDA
None.
AUTHORITY COMMUNICATIONS
None.
Special Meeting
Alameda Public Financing Authority
August 17, 1999
ADJOURNMENT
There being no further business, Chair Appezzato adjourned the
Special Meeting at 8:12 p.m.
Respectfully submitted,
D4iine B. Felsch, CMC
Secretary, Alameda Public Financing
Authority
The agenda for this meeting was posted in accordance with the Brown
Act.
Special Meeting
Alameda Public Financing Authority
August 17, 1999