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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