HomeMy WebLinkAboutPFC1 - Public Facilities Corporation MinutesAugust 8, 2017
NBPFC Agenda Item No. 1
CITY OF NEWPORT BEACH
Newport Beach Public Facilities Corporation
Annual Meeting
August 9, 2016
A. ROLL CALL - 5:00 p.m.
Present: Director Peotter, Director Duffield, Director Muldoon, Director Curry, Director Petros,
Vice Chairman Dixon, Chairman Selich
B. PUBLIC COMMENTS ON AGENDA ITEMS
Regarding the financial statement (Item 2), Jim Mosher indicated that he provided written
comments. He discussed Certificates of Participation (COP), asked who owns the Civic Center
property, provided questions relative to the lease of the property, questioned who is responsible for
paying the debt, and asked what happens and what the effects are if the NBPFC does not make the
payments.
Chief Financial Officer Matusiewicz clarified that the financial statement is not a separate
document, but is audited with the City's financial reports and have been extracted from the main
report in order to provide the NBPFC with information.
Regarding Mr. Mosher's questions, Chief Financial Officer Matusiewicz reported that the NBPFC is
the lessor to the Civic Center property, NBPFC assigns the rights to the lease and the rights to the
lease payment to a trustee, the City makes direct payments to the trustee, and the trustee pays the
COP holders. However, he reported that the City holds title to the property and that this
arrangement is an integral component of the lease -financing transaction to have a counterparty to
the lease.�V
C. ELECTION OF OFFICERS
Motion by Director Muldoon, seconded by Director Peotter, to elect the Mayor as Chairperson
of the Corporation, the Mayor Pro Tem as the Vice Chairperson of the Corporation, and the Council
Members as the Corporation's Board of Directors for the 2016-2017 fiscal year.
The motion carried by the following roll call vote:
Ayes: Director Peotter, Director Duffield, Director Muldoon, Director Curry, Director Petros, Vice
Chairwoman Dixon, Chairman Selich
D. APPROVAL OF MINUTES
1. Minutes of the August 11, 2015 Public Facilities Corporation Meeting.
Motion by Director Peotter, seconded by Director Curry, to waive reading of subject
minutes, approve as amended, and order filed.
The motion carried by the following roll call vote:
Ayes: Director Peotter, Director Duffield, Director Selich, Director Curry, Director Petros,
Vice Chairman Muldoon, Chairwoman Dixon
PFC 2016 - Page 1
City of Newport Beach
Newport Beach Public Facilities Corporation
August 9, 2016
E. CURRENT BUSINESS
2. Review of Annual Financial Statements
Chief Financial Officer Matusiewicz reported that the purpose of the NBPFC is to act as the
counterparty to a lease in a lease -financing transaction and reviewed the financial statement.
In response to Director Peotter's questions, Chief Financial Officer Matusiewicz explained why
the payment and revenues goes through the trustee before the NBPFC. He clarified that the
COP -holders do not have recourse against the property, but have a proportionate share in the
lease revenues. He discussed the two stipulations (annual appropriation and abatement
certificate) that do not constitute legal indebtedness. He noted that, if the City does not make its
payment, it would be in default of the covenants with the bondholders and doing this would also
affect the City's credit rating. He reported that there is insurance on the property in the event is
becomes uninhabitable.
Motion by Director Curry, seconded by Director Petros, to receive and file the Annual
Financial Statements.
The motion carried by the following roll call vote:
Ayes: Director Duffield, Director Selich, Director carry, Director Petros, Vice Chairman
Muldoon, Chairwoman Dixon
Nays: Director Peotter I*% V
F. PUBLIC COMMENTS ON NON -AGENDA ITEMS P
Jim Mosher suggested placing information about the NBPFC on the City's webpage.
G. ADJOURNMENT - 5:20 p.m.
The agenda for the Newport Beach Public Facilities Corporation was posted on the City's
website and on the City Hall Electronic Bulletin Board located in the entrance of the City
Council Chambers at 100 Civic Center Drive on August 4, 2016, at 4:00 p.m.
Secretary
Chair
PFC 2015 - Page 2