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HomeMy WebLinkAbout08/09/2016 - Special MeetingCITY 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. C. ELECTION OF OFFICERS Motion by Director Muldoon, seconded by Director Peotter, to elect Mayor Diane Dixon as Chairperson of the Corporation, Mayor Pro Tem Kevin Muldoon 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 11, 2015 E. F G. 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 it 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 Curry, Director Petros, Vice Chairman Muldoon, Chairwoman Dixon Nays: Director Peotter PUBLIC COMMENTS ON NON -AGENDA ITEMS Jim Mosher suggested placing information about the NBPFC on the City's webpage. ADJOURNMENT - 5:20 p.m. The agenda for the Newport Beach Public Facilities Corporation was posted on,*e City's website and on the City Hall Electronic Bulletin Boar located in the entrof the City Council Chambers at 100 Civic Center Drive on Ay ust_4,- 16, at 4:00 pfqW Secretary PFC 2015 - Page 2