Loading...
HomeMy WebLinkAbout07/22/2014 - PFC CITY OF NEWPORT BEACH City Council Minutes Newport Beach Public Facilities Corporation July 22, 2014 A. ROLL CALL— 6:00 p.m. Present: Director Gardner, Director Petros, Director Henn, Director Selich, Vice Chairman Hill, Chairman Curry Excused: Director Henn, Director Daigle B. PUBLIC COMMENTS Jim Mosher took issue that the City borrowed money through Certificates of Participation to fund the Civic Center and Central Library, especially in light of the amount of yearly interest accrued, since the interest paid could be used to fund other facilities. He expressed the opinion that cash could have been used to fund the new City Hall as had been done previously with the old City Hall on Newport Boulevard and with two new park. He believed that the residents should have had a say as to how the Civic Center was funded and referenced Charter Section 1109 (Bonded Debt Limit). He noted that the City would contend that General Obligation Bonds referenced in Charter Section 1109 are different than Certificates of Participation; however,he disagrees. Scott Peotter referenced the amount due on the Certificates of Participation and believed that the total cost for the new City Hall would be $282 million after all the interest has been paid. He indicated that this would have needed a vote if the City used General Obligation Bonds rather than Certificates of Participation and believed that the Corporation is leasing the land to the City so there is no tax obligation by the City. He asked what the penalty would be if the debt was paid early and what would happen to the $44 million debt if it were paid early. Chairman Curry took issue with the previous statements, explaining that the interest rate is not 6% but 4.44%, and City Hall cost $67 million, not $140 million. He reported that the total cost also included the library expansion, parking structure, and the parks. He noted that, if the City paid cash for the Civic Center and Park Project, Marina Park and Sunset Ridge Park would not have been able to be built and the West Newport Beach improvements would not be conducted. He emphasized that, using a General Obligation Bond, would involve raising property taxes and reported that a citizen's finance committee reviewed all the options and recommended using Certificates of Participation as part of a long-term capital plan. He pointed out that the Civic Center location was mandated by the voters, but noted that he and Director Selich led the opposition for relocating City Hall. C. ELECTION OF OFFICERS Motion by Director Petros, seconded by Director Selich, 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 2014- 2015 fiscal year. The motion carried by the following roll call vote: PFC 2014-Page 1 City of Newport Beach Newport Beach Public Facilities Corporation July 22, 2014 Ayes: Director Gardner, Director Petros, Director Selich, Vice Chairman Hill, Chairman Curry Absent: Director Henn, Director Daigle D. APPROVAL OF MINUTES 1. Minutes of the July 23, 2013 Public Facilities Corporation Meeting. Motion by Vice Chairman Selich. seconded by Director Petros, to approve the amended minutes of the July 23, 2013 Public Facilities Corporation Meeting. The motion carried by the following roll call vote: Ayes: Director Gardner, Director Petros, Director Curry, Vice Chairman Selich, Chairman Hill Absent: Director Henn, Director Daigle E. CURRENT BUSINESS 2. Review of Annual Financial Report Chief Financial Officer Matusiewicz reported that the staff report discussed the nature and purpose of the Newport Beach Public Facilities Corporation. Motion by Vice Chairman Selich. seconded by Director Curry, to receive and file the Annual Financial Report. The motion carried by the following roll call vote: Ayes: Director Gardner, Director Petros, Director Curry, Vice Chairman Selich, Chairman Hill Absent: Director Henn, Director Daigle F. PUBLIC COMMENTS ON NON-AGENDA ITEMS Jim Mosher suggested that the Corporation review its by-laws to be consistent to when the meetings are held. Scott Peotter indicated that the City Council was given the trust of the voters to build City Hall on the current site within a reasonable budget and believed that he did not misrepresent any facts stated earlier in the meeting. In response to Director Curry's questions, Mr. Peotter stated that he would not have spent $140 million. He indicated that he would have paid cash for the facility or taken the bonded indebtedness to the voters. He noted that he would not have expanded the library, spent money on the bunnies in the park, constructed the bridge, designed a dog park that was too small, and would have utilized surface parking instead of a parking structure. He agreed with the park use, but stated that he is not thrilled with its design. G. ADJOURNMENT— 6:14 p.m. PFC 2014- Page 2 City of Newport Beach Newport Beach Public Facilities Corporation July 22, 2014 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 July 17, 2014, at 4:00 p.m. The amended agenda 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 July 21, 2014, at 9:00 a.m. R � i a an r Secretary PO o� e u i Q9L(FOA��P PFC 2014-Page 3