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2008-11-18 APFA minutes
8 MINUTESOFTHESPECIALJOINTCITYCOUNCILAND ALAMEDAPUBLICFINANCINGAUTHORITY(APFA)MEETING TUESDAY--NOVEMBER 181 2008--7:32P.M. Mayor/ChairJohnsonconvenedtheSpecialJointMeetingat11:36 p.m. ROLLCALL-Present:Councilmembers/AuthorityMembersdeHaanl Gilmorel Matarresel Taml andMayor/Chair Johnson-5. Absent:None. AGENDAITEM (08-493CC)ResolutionNo.142871 "AuthorizingtheExecutionand DeliveryofanEscrowDepositandTrustAgreementRelatedtothe PartialPrepaymentandDefeasanceoftheAlamedaPublicFinancing Authority'sSeries2004RevenueBondAnticipationNotes(Alameda Power &Telecom)I andApprovingRelatedDocumentsandActions.H Adoptediand (08-05APFA)ResolutionNo.08-18,"AuthorizingtheExecutionand DeliveryofanEscrowDepositandTrustAgreementRelatedtothe PartialPrepaymentandDefeasanceoftheAuthority'sSeries2004 RevenueBondAnticipationNotes(AlamedaPower &Telecom),and ApprovingRelatedDocumentsandActions."Adoptediand (08-493CCA)OrdinanceNo.2986,"ApprovingandAuthorizingthe ExecutionofAllNecessaryAgreementsandDocumentsfortheSaleof theAlamedaPower &TelecomTelecommunicationsBusinessLineto ComcastofAlameda,Inc.H Passed. TheAlamedaPower&Telecom(AP&T)GeneralManagergaveaPower Pointpresentation. ***(08-494CC)ViceMayorTammovedapprovalofcontinuingthemeeting pastmidnight. CouncilmemberMatarresesecondedthemo t i.on,whichcarriedby unanimousvoicevote-5. *** Mayor/ChairJohnsoninquiredwhethertonight/spresentationwas providedtothePublicUtilitiesBoardlastnight. SpecialJointMeeting AlamedaCityCouncilandAlamedaPublic FinancingAuthorityMeeting November18,2008 TheAP&TGeneralManagerrespondedintheaffirmative;statedthe presentationwasprovidedtothepublicataworkshoplast Wednesday. ViceMayor/Authority losswouldbeafter employeeseverance understandpotential MemberTaminquiredwhattheprojectednet repayingloans,transactioncosts,andthe agreement;statedthatsheistryingto impactsonelectricrates. TheAP&TGeneralManagerrespondedthe$44millioninterfund transferwouldbewrittenoffandcarriedasanassetonthe electricbooksandadebtonthetelecombooks;electricassets wouldbereducedbyapproximately$40millionforatotalof$120 million;ratingagencieslookatAP&Tasacashflowbusiness; assetvalueisafactor,butnotaprimaryfactorithemainconcern iswhethertheelectricbusinesswouldhavetelecominterfund transfersinthefutureithesalewouldremovesaidpossibilitYi telecominterfundtransfersareanegative;thepositivesideis havingapowerfulportfolio,whichismostlyrenewablepowerimost utilitiesneedtobuyadditionalrenewablepower;theimpactwill mostlikelybepositive. Councilmember/AuthorityMemberdeHaanrequestedinformationonthe $2.2 milliontransferfromtheGeneralFund. TheAP&TGeneralManagerstatedthe $2.2 millionispartofthe litigationithathewillneedtodefercommentuntillitigationis complete;the $2.2 millionwasadvancedtoAP&TfromtheGeneral Fundaspartofthefinancingforsystemconstruction. Councilmember/AuthorityMemberdeHaaninquiredwhetherthe$2.2 millionwouldnotexpirebecauseoftheproposedtransaction. TheAP&TGeneralManagerrespondedtheissuewouldbediscussed withtheexternalauditorsandwouldbeinfluencedbypending litigation. Councilmember/AuthorityMemberdeHaanrequestedinformationon litigationexposure. TheCityAttorney/LegalCounselstatedthatshewouldprovide informationinaconfidential,attorney-clientprivilegedmemo; currently,therearetwolawsuits;theCityhasbeensuedby VectrenwhowastheoriginalpartneriVectrensuedtheCitybecause ofallegationsthatthesystemshouldhavemadealargernet profititheCityisalsoinlitigationwithNuveenbecauseNuveen wouldbereceivingfiftycentsonthedollarifthesystemissold. SpecialJointMeeting AlamedaCityCouncilandAlamedaPublic FinancingAuthorityMeeting November18,2008 8 Mayor/ChairJohnsonopenedthepublicportionofthemeeting. Proponents(Infavorofthestaffrecommendations):KevinKennedy, CityTreasurer;FormerCouncilmemberHadiMonsef,Alameda. Therebeingnofurtherspeakers,Mayor/ChairJohnsonclosedthe publicportionofthemeeting. Councilmember/AuthorityMemberdeHaanstatedthathewholeheartedly supportssellingthesystem;employeeshavebeenexceptional;alot ofpeoplethinkthatthesystemshouldnotbesold,buthe disagrees;theindustryismorecompetitivethanexpected;thathe commendseveryoneforputtingthematterintoprospective. Councilmember/AuthorityMemberGilmorecomplimentedtheAP&T GeneralManagerandemployees;statedthatsheisinsupportofthe aale,buttheissueisbittersweet;theproposedsaleisthe fiscallyresponsiblethingtodo;customerservicehasbeen personabler attentive,andtimely;theservicehasbeengreatfor thecommunity. Councilmember/AuthorityMemberMatarresethankedtheAP&TGeneral Managerandemployeesforalltheworkandgreatservice;stated thereisnootherchoicethantosellthesystem;thenoteexceeds thevalueofthesystem;AP&Tisunabletocompeteinthetelecom market. Mayor/ChairJohnsonthankedthePublicUtilitiesBoardforthehard workandexceptionaladvice. ViceMayor/CouncilmemberTamstatedtheenvironmentwasdifferent tenyearsagowhenthecommunityvotedtoenterthetelecom business;fifteenthousandresidentssubscribetothesystem; thankedsubscribersforsupport;statedtheCityCouncilwillwork withthePublicUtilitiesBoardtoprovideopportunitiesto increasecompetitioninordertoprovidecompetitiveratesfor Alamedaresidents;thankedtheCityManager/ExecutiveDirector, CityAttorney/LegalCounsel,andAP&TGeneralManagerforthe intenseefforttogetthebest deali statedthatsheisinfavorof thesale. Mayor/ChairJohnsonstatedthatsheappreciatestheAP&TGeneral Manager'scommentsregardingcurrentandfuturere-organizationto ensurethatAP&Tisoperatinginthemostefficientway;thatshe appreciatesthepro-activeapproach. SpecialJointMeeting AlamedaCityCouncilandAlamedaPublic FinancingAuthorityMeeting November18,2008 o Councilmember/AuthorityMemberGilmore resolutionsandpassageofordinance. moved adoption of Councilmember/AuthorityMemberMatarresesecondedthemotion,which carriedbyunanimousvoicevote-5. ADJOURNMENT Therebeingnofurtherbusiness,Mayor/ChairJohnsonadjournedthe SpecialJointMeetingat12:26a.m. Respectfullysub~itted, ~ Clerk PublicFinancing LaraWeisiger,Ci Secretary,Alamed Authority TheagendaforthismeetingwaspostedinaccordancewiththeBrown Act. SpecialJointMeeting AlamedaCityCouncilandAlamedaPublic FinancingAuthorityMeeting November18,2008